71–77 of 77 posts
I had always thought of BTC in terms of an alternate currency but I watched a video yesterday with Saylor where he pitched it instead as a store of value. While the concept was not new to me, it was a really interesting video and he did a good job with it. BTC will not replace the dollar, but its probably going to eat gold.
What value does it provide?
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yeah. i would rather raise $ to deploy if BTC falls a lot to buy the dip . buying at 70k seems so foolish
Buying at $10k was foolish, yet here we are. The point being that people will say that at any price point, even though the price always goes beyond all time highs during every bull market.
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Buying at $10k was foolish, yet here we are. The point being that people will say that at any price point, even though the price always goes beyond all time highs during every bull market.
Bitcoin tends to have severe, sudden crashes after going up a lot, see May 2021 or Dec 2021. I would rather keep cash on sidelines, imho. Already crashing a lot today.
One way to hedge against those crashes is to use your BTC as collateral to borrow against it, and then find ways to use those borrowed funds to compound your earnings. For example, you can borrow ETH, stake that for ~4%. Of course, you need to maintain your ratio, but that's actually quite easy. Worst case you just unstake your ETH, pay back your loan and you're out... or you add more BTC to up your ratio.
This way you're protected against crashes and disconnected from the actual value of the underlying asset (BTC). You're making that ~4% regardless of what the price of BTC is doing. Saylor is playing these sorts of financial games (probably not with ETH, but with other assets). This is how he has continued to double down on his purchases, without having to sell.
Today is just noise and a terrible example to try to make, which undermines your position on things. It went down more than that after the ETF and then boomed upwards. Zoom out on the chart a bit instead of looking at these micro events.
You've been dumping on BTC in this whole thread. You've got a lot of karma here, but your vision and hatred of crypto are distorting your views. My suggestion would be to spend some time understanding the macro economics a bit more.
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#studybitcoin
using tons of debt to buy bitcoin is independent of the case for bitcoin
The problem though is that long term, I'd argue that ETH is playing this game a lot better. If you can mentally get past the DAO failure and whatever other drama, programmable money, is the absolute future, especially since they solved the energy usage issue, and soon the scaling issues.
Especially now that ETFs give access to Bitcoin to institutions that traditionally could not touch it.
Makes no sense to me.
Proof of work needs to be outlawed. Externalities will be the death of us.
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Inclusion to S&P500 is a committee decision, not based on purely market cap. It may not happen for MSTR. MSTR is essentially a leveraged, debt laden commodity trust rn, with a highly volatile commodity making up most of its balance sheet. Their premium to NAV is indeed very high, and makes you think why would anyone buy that vs a BTC ETF. Perhaps if you think BTC goes a lot higher (and stays there) their ongoing leve…
I watched part of an interview Saylor gave recently where he said the reason to invest in MSTR over an ETF is increased performance.