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If a company is cash-flow-negative, holding real money is probably the best thing they can do. If they can issue shares to do so, isn't that the smartest possible thing?!
no, shutting down is the best thing they can do. Stop destroying capital
Real economics doesn't stop applying just because, like, we've got bitcoin now
Would you consider it "destroying capital" for an individual to take out the maximum loan possible to buy a huge house during times of extremely low interest rates?
I see it as a very similar concept. If a company has the ability to issue shares in order to buy Bitcoin, they should, even if they are cash-flow negative. It's the broken system that even allows such a thing to happen.
Shit, as long as we're living in a fiat-denominated world, I'm not sure that I even acknowledge the concept of "destroying capital" as a real thing. It's all manipulated. Winners and losers are chosen arbitrarily. There is no such thing as "capital" in such a system at all.
So what's wrong with a company taking advantage of such a broken system?
"Real economics" already stopped being relevant the second we allowed a central bank into the U.S.
Nope. Not even remotely similar.
Or, put in that analogy: would it be a good idea to do that, if dude has been out of work for two years and is rolling over credit cards?
No one's disputing that buying BTC on credit involves risk of liquidation. The question is what is a reasonable amount of risk to take.
Should a multinational corporation take out a 0% interest loan to buy Bitcoin? Should I have taken out 30% interest loans to buy Bitcoin while unemployed? Both questions depend on a lot of other factors and numbers, not least of which is the average price of a whole coin in 2026 which is probably a lot. But a knee-jerk negative reaction to any usage of credit at all (as though any individual or business could even compete and survive in the economy as it is without using credit) is silly.
What is even the criticism here? What do you mean by destroying capital? Is the critique "well this company would be broke if it weren't for the Bitcoin gains"? And? What's the problem?? I was smart enough to get Bitcoin on credit while it was cheap. That in itself is a form of productivity. The market agrees with me. I'm performing a service for the people that prefer to pay a higher price. This is the real economy at work, at last.
I don't think anyone has formulated a "knee-jerk negative reaction" to using credit. What are you talking about?
No, the company should shut down and return the resources they're in possession of to others who can wield them better. That's the drag.
This is exactly what I'm talking about. If I have $10k and no job, should I just give away that $10k to someone more productive? Why? Is it unfair if I earn 0.1 BTC from a balance sheet decision while someone else had to work harder to get to the same place? That's just what happens when you introduce hard money onto the market. If you try to correct it with social engineering then you defeat the purpose.
If we're judging by who's wielding the capital most effectively, why don't you shut down and give your BTC to a company with a higher return on assets ratio than you?
I'm also only a quarter of the way through it.
I think Bitcoiners, in general, continue to call dollars "money" and talk about dollar "profits/losses", and continue to treat Bitcoin as ONLY an "investment".
The way we talk about treasury companies exemplifies this. We don't talk about, or criticize, the companies who hold zero Bitcoin. Our community seems to act as though Bitcoin is a speculative investment. That is the backdrop of Danny's questions, and I feel like Saylor is trying to re-frame it so Bitcoin is the money, not dollars. If a company is cash-flow-negative, holding real money is probably the best thing they can do. If they can issue shares to do so, isn't that the smartest possible thing?! Someone is willing to buy their worthless paper with worthless paper, to buy something real.
It seems to me that Saylor is the only logical one here, actively trying to get the world to move to a Bitcoin Standard. While the Bitcoin community, generally, holds on as tightly as possible to their fiat paper.
The unwillingness of Bitcoiners to actually move to a Bitcoin Standard, is really bothering me. Lots of lip-service about it, but zero real effort.