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I can’t tell if it’s a snake eating itself, or if it’s just financial folk doing fancy financial things to sell paper to plebs in order to accumulate hard assets.
This is not selling debt to plebs. All fiat originates as debt. Banks create debt (fiat money) with no risk and no opportunity cost. This debt has artificially low interest rates, because to the bank, it is cost-less.
Corporations take advantage of this extremely cheap debt, expand, buy assets, and buy upstarts (YouTube, for example).
Saylor is just using asymmetric information to buy the most valuable asset with artificially cheap debt. It’s brilliant. Once more businesses and individuals discover this, it accelerates the demise of fiat.
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It’s kind of insane. Seems like Microstrategy pumping is gunna make a lot of cash heavy companies do the same. It’s just gunna accelerate.
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63 sats \ 4 replies \ @siggy47 20h
Because it's a publically traded company, it has been given a valuation premium above the fiat value of the bitcoin it "owns." (If you trust coinbase). It is a toy for hedge funds to play with volatility. How long Saylor can keep all the balls in the air is anyone's guess.
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ah, interesting take. Makes sense. All Microstrategy coins are in Coinbase?
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21 sats \ 2 replies \ @siggy47 20h
I'm not certain, but I think coinbase is the main custodian for all the big corporate entities. I think the fact that it is a public company supposedly adds credibility.
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21 sats \ 0 replies \ @siggy47 19h
That's a great site!
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21 sats \ 1 reply \ @DarthCoin 21h
SAYLOR IS A SCAM TO FOOL MORE PEOPLE AND PUMP THE PRICE UP. He's just a tool used by the "big boss" behind him...
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