Great article Mike, I agree. I didn't know Justin Sun was the buyer of the banana. My first reaction when I saw that art sale was; 'the illustration of the greater fool theory' he hopes to sell the art at a higher price to an even greater fool. Concerning Saylor, theoritically he will dilute his-your ownership of the company, but at slower paced than the valued accrued to the company, from buying btc. also he still has a relatively low cost base of btc, below the 200 week MA (theoritical floor of the price) But I agree with you, he could very well over step the boundaries at one point. It is looking like that. He speaks of btc now as a 'risk free asset' that always goes up. A bit like when you repeat every Sunday that Jesus walked on water, you end up believing he really did walk on water
As for the basic reason he is pitching this stuff, it is that he needs to find more people who will buy btc in big size, to whom he can sell. he wants to harvest the volatility to keep his menagerie going. he also needs to keep being able to issue stock and converts with a premium, for that he needs btc to keep going up. and it is better if there are many big buyers around, not just a few. if the USA starts buying it a reserve asset though, that party gets a lot hotter
Well, couple points; public companies not named MicroStrategy buying Bitcoin may not work out for MSTR shareholders the way Saylor seems to think it will. I'd argue greater 'adoption' of Bitcoin as a corporate reserve asset undermines the premium in MSTR shares and by extension limits Saylor's ability to keep issuing debt. I've listened to several of his podcast appearances and he makes some fairly baffling claims about Bitcoin in my view. It seems like he's spinning plates on a stick. Probably because he's the GBTC/3AC of this cycle and he knows it. But to the latter point, I think the real probability of the US buying Bitcoin as a reserve asset is greatly exaggerated. Trump just threatened BRICS nations with tariffs over any JV currency competition with the dollar. There is a clear understanding at this point that dollar dominance is at risk and I don't think using freshly created dollars to buy an asset that could realistically be cut in half in a matter of a few weeks is what the country's bondholders would want to see - it would be choosing self-destruction on purpose. I could absolutely be wrong, but I'm just not seeing the BTC reserve thing happening any time soon - if at all. I recognize that these are not popular views in crypto advocacy spaces, but it's my honest view of it all.
Great article Mike, I agree. I didn't know Justin Sun was the buyer of the banana. My first reaction when I saw that art sale was; 'the illustration of the greater fool theory' he hopes to sell the art at a higher price to an even greater fool. Concerning Saylor, theoritically he will dilute his-your ownership of the company, but at slower paced than the valued accrued to the company, from buying btc. also he still has a relatively low cost base of btc, below the 200 week MA (theoritical floor of the price) But I agree with you, he could very well over step the boundaries at one point. It is looking like that. He speaks of btc now as a 'risk free asset' that always goes up. A bit like when you repeat every Sunday that Jesus walked on water, you end up believing he really did walk on water
He has become Bitcoin's main character. That's not a good thing at all.
As for the basic reason he is pitching this stuff, it is that he needs to find more people who will buy btc in big size, to whom he can sell. he wants to harvest the volatility to keep his menagerie going. he also needs to keep being able to issue stock and converts with a premium, for that he needs btc to keep going up. and it is better if there are many big buyers around, not just a few. if the USA starts buying it a reserve asset though, that party gets a lot hotter
Well, couple points; public companies not named MicroStrategy buying Bitcoin may not work out for MSTR shareholders the way Saylor seems to think it will. I'd argue greater 'adoption' of Bitcoin as a corporate reserve asset undermines the premium in MSTR shares and by extension limits Saylor's ability to keep issuing debt. I've listened to several of his podcast appearances and he makes some fairly baffling claims about Bitcoin in my view. It seems like he's spinning plates on a stick. Probably because he's the GBTC/3AC of this cycle and he knows it. But to the latter point, I think the real probability of the US buying Bitcoin as a reserve asset is greatly exaggerated. Trump just threatened BRICS nations with tariffs over any JV currency competition with the dollar. There is a clear understanding at this point that dollar dominance is at risk and I don't think using freshly created dollars to buy an asset that could realistically be cut in half in a matter of a few weeks is what the country's bondholders would want to see - it would be choosing self-destruction on purpose. I could absolutely be wrong, but I'm just not seeing the BTC reserve thing happening any time soon - if at all. I recognize that these are not popular views in crypto advocacy spaces, but it's my honest view of it all.
you might also want to look at this video
https://www.youtube.com/watch?v=8U1JqBQ82b4&list=WL&index=4&t=1352s
Great find/share! Thnx
if you liked that video, this one is pretty good too. https://www.youtube.com/watch?v=bTrdWIVc9aM&list=WL&index=3