They do not care about the environment. Bitcoin contributes a lot to global warming by design.
Your replies also contribute a lot to global warming.
MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset
61–70 of 176 posts
Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset
#62Earlier quoted context omitted.
The Fed introduces new money into the economy through two major mechanisms: setting a target interest rate on overnight loans, and buying assets at market rates. It's not clear how either of those would be extended to an equal division between all citizens, the vast majority of whom don't want overnight loans and don't have financial assets they want to sell.
Hence why they shouldn't do it.
It seems unfortunate to give up a useful tool for managing the economy just because it can't be structured to provide everyone an equal amount of benefit. Should we end small business programs because not everyone's wealthy enough to own a small business?
I'd see the problem if it worked how I've sometimes seen it described, where rich people and banks are just getting free gifts of cash, but that's not accurate.
Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset
#63Earlier quoted context omitted.
Hilariously weak? I think they lay out a reasonable argument considering the amount of debt around the world and the fragility of the economy. The big question is: will we have deflation or inflation? I am not sure, but I doubt the USG will let itself go bankrupt.
Correction: the world won’t let the USG go bankrupt. American generals won’t just stand down, disband their forces, and turn in their boots. If the USG goes bankrupt a massive war will breakout. In the business world things have been going pretty well so if more taxes become necessary to prop up the USG they will happily oblige.
I agree with what you are saying, but even before that point, the USG which is sovereign over its money supply, will be able cover any liabilities it has by creating the necessary money. This is what I was alluding to when I mentioned that the USG won’t let itself go bankrupt. They will destroy the USD before going bankrupt, because the repercussions of going bankrupt are much worse than a lower valued USD. Also, the whole debt ceiling is a charade; the FED can and has monetized treasury debt without any fuss.
Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset
#64They do not care about the environment. Bitcoin contributes a lot to global warming by design.
Your replies also contribute a lot to global warming.
Telling people that bitcoin and its stupid proof of work consume energy indeed consume energy. But informing people about it is worth it. And the energy use is nothing compared to bitcoin. Not even a rounding error.
Or do you mean I make people hot (upset)?
Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset
#65Earlier quoted context omitted.
I never understood how anyone can find it remotely fair for the Fed to introduce new money into the economy by any means other than equal division between all citizens.
The Fed introduces new money into the economy through two major mechanisms: setting a target interest rate on overnight loans, and buying assets at market rates. It's not clear how either of those would be extended to an equal division between all citizens, the vast majority of whom don't want overnight loans and don't have financial assets they want to sell.
> "and buying assets at market rates."
Without sarcasm, given the latest purchases of assets beyond Treasuries and MBS, why do you think the Federal Reserve has purchased assets at market rates?
Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset
#66Earlier quoted context omitted.
The Fed introduces new money into the economy through two major mechanisms: setting a target interest rate on overnight loans, and buying assets at market rates. It's not clear how either of those would be extended to an equal division between all citizens, the vast majority of whom don't want overnight loans and don't have financial assets they want to sell.
> "and buying assets at market rates." Without sarcasm, given the latest purchases of assets beyond Treasuries and MBS, why do you think the Federal Reserve has purchased assets at market rates?
It's my understanding that their asset purchase programs involve just buying things normally on the open market. It's of course a bit more complicated than "market rate", since large purchases marginally affect the price, but as far as I know nobody gets a special deal where the Federal Reserve pays 1.5x what the bonds are worth.
Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset
#67Earlier quoted context omitted.
Your replies also contribute a lot to global warming.
Telling people that bitcoin and its stupid proof of work consume energy indeed consume energy. But informing people about it is worth it. And the energy use is nothing compared to bitcoin. Not even a rounding error. Or do you mean I make people hot (upset)?
You seem to be the one upset.
Storing gold consumes energy, printing money consumes energy, using credit cards and maintaining a bank's data centers consumes huge amounts of energy; they have been doing it for decades, and with far dirtier energy than the one we use now. There is no payment method or currency that does not consume energy in one form or another.
Everything consumes energy. You by being awake are contributing to global warming. Every shower you take contributes to make the planet warmer.
Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset
#68Earlier quoted context omitted.
Hilariously weak? I think they lay out a reasonable argument considering the amount of debt around the world and the fragility of the economy. The big question is: will we have deflation or inflation? I am not sure, but I doubt the USG will let itself go bankrupt.
Correction: the world won’t let the USG go bankrupt. American generals won’t just stand down, disband their forces, and turn in their boots. If the USG goes bankrupt a massive war will breakout. In the business world things have been going pretty well so if more taxes become necessary to prop up the USG they will happily oblige.
Inflating the debt away would actually be the opposite of bankruptcy.
Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset
#69How is Bitcoin not just a proxy for USD?
Did you read their argument at all? The macro bet is that all the money printing is devaluing fiat currencies. Store of value assets like Gold and BTC are rallying because of this.
The USD I think buys 15% less EUR than it did pre-COVID. Similar results even if you compare it to a basket of world currencies.
Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset
#70"[We] spent months deliberating to determine our capital allocation strategy. Our decision to invest in Bitcoin at this time was driven in part by a confluence of macro factors affecting the economic and business landscape that we believe is creating long-term risks for our corporate treasury program ― risks that should be addressed proactively. Those macro factors include, among other things, the economic and public…
I can totally believe how Bitcoin, Ethereum and the rest of the cryptocurrency space could go through another bubble (the last one was quite small if you compare it to the DotCom bubble and consider how much money is floating around nowadays). So I can imagine that this will turn into a big profit for them but the arguments are hilariously weak. Granted they will get a lot of PR out of it.
> go through another bubble
I don't know. I remember a few years ago when people on reddit would get excited when some cafe in Bratislava or wherever started accepting bitcoin, or when Steam started accepting bitcoin. Now cryptocurrencies seem... boring. I see lots of people talking about "store of value", but actual use of bitcoin for what it was intended seems to be decreasing. And now people who want to gamble can just buy NKLA or SPCE or options on zero-fee brokers, which weren't a thing when bitcoin hit all-time high.
This is just my impression as an outsider, of course.