pull down to refresh

202 sats \ 1 reply \ @SimpleStacker 31 Jul \ on: Paper Bitcoin Summer - Economic Forces econ
There is also a question about the end game. This strategy can only work if bitcoin becomes more firmly integrated into the global financial system and perhaps even the global trading system. If these treasury companies are correct about this, at some point major market participants will want to acquire bitcoin at scale. In that case, these treasury companies would become targets for acquisition since acquiring a treasury company would likely be cheaper than trying to acquire a large stock of bitcoin in the market.
Hmm, this is interesting. If acquiring the treasury company is cheaper than acquiring a large stock of Bitcoin in the market, wouldn't that make the investors losers because they aren't getting fully compensated for the market price of the bitcoin holdings that the treasury company has?
Ultimately, these companies are betting on a joint hypothesis: (1) that bitcoin will play a major role in global finance, and (2) that the current regulatory and market segmentation will persist. For those interested in financial markets and financial history, it should be fascinating to watch.
The segmentation is likely to persist in the near future, IMO. Still too many normies with anti bitcoin views.
write
preview
30 sats \ 0 replies \ @Scoresby OP 31 Jul
The statement "since acquiring a treasury company would likely be cheaper than trying to acquire a large stock of bitcoin in the market" seems pretty difficult to evaluate.
If we can all imagine that acquiring a large stock of btc on the spot market might distort the price, wouldn't there be enough of a bid for the acquisition of bitcoin treasury companies that their stock also carries a premium?
reply