104,389 sats stacked
stacking since: #136620longest cowboy streak: 1
A 2 hour long X Space discussing this: https://twitter.com/i/spaces/1DXxyjlQZlyKM?s=20
Imagine GME, but as it goes up for whatever reason (inflows of passive money, short squeezes etc.) it locks in the profits from the absurd moves up by buying more BTC. And you end up with GME that can't go down in BTC terms, and you can repeat that ad infinitum.
P.S. No need for zaps, you've zapped me enough!
This effect will become stronger as MSTR's market cap grows and especially once it's bought passively through index funds tracking the S&P 500, Nasdaq-100 etc.
The stock attracts a premium over the value of their BTC holdings. They issue more shares, which dilutes the stock, but they buy more BTC with the proceeds and end up with more BTC per share. What TradFi is used to viewing as dilution, ends up being accretive. Hedge funds are also shorting MSTR and hedging it with long BTC positions in the hope of earning risk-free money they see in the erasure of the premium (effectively delta-neutral on BTC + alpha in the premium). But demand exceeds supply, which is pushing the price higher and squeezing the shorts.
I have yet to wrap my head around what happens when BTC dips or enters a bear cycle (if that is ever to happen). There are also stock buybacks, which I don't understand in this context, but those bullish guys on X think it would push it up even higher.
Success in this trade means a very different / rough / tumultuous world shifting with extreme volatility disrupting the fabric of a lot of society as we know it. Government, Real estate, banking, surveillance, education, insurance, AI, etc.
This is a very serious trade, do not take that responsibility lightly. This is also why @saylor appears so serious all the time, he understands the gravity of this situation, and he has game theoried the way to the proverbial black hole finish line. The gravity of $MSTR & #BTC will consume everything around it.
I, too, somehow feel MSTR is going to play a role in disrupting the system in tandem with BTC, although it's still a bit over my head.
Check out @PunterJeff on X. @ryQuant is good too. Jeff thinks MSTR will hit $250k in 2029.
I'm not timing the market trying to sell at the top. It's more about: what percentage of my disposable income should I put into stacking vs enjoying life. Different market stages (bear vs bull) have different answers and if I get it wrong, I'm not losing sats, I'm just stacking less and living more instead.
Purchasing power of a currency is fundamental so to not consider it is a mistake.
Sure. If the purchasing power didn't matter and it was all about the tech, there would no point in stacking sats continually as there would be no difference between owning 1 BTC and owning 100k sats; you could use the tech all the same.
I would argue that this extreme deflation (or increase in purchasing power) of btc is one of its main barriers to ever becoming a currency.
I see a lot of people becoming hung up on the SoV vs currency dichotomy. It's a false dichotomy, coming from the fiat world, where it's either one or the other. Bitcoin is a new beast and only time will tell what it evolves into.
knowing I can make money by doing nothing means I would do nothing.
If everyone does nothing, bitcoin's purchasing power won't grow. It can only grow when the same supply chases an increasing amount of goods, i.e. when there is economic growth.
Holding BTC will allow you to share in the global economic growth, but there will always be people wanting to work, to outperform those doing nothing.
Check out this X space, Enterprise Bitcoin: The Financial Economy on a Bitcoin Standard They discuss what the economy may look like on a Bitcoin standard and they talk about this particular issue, among others, incl. lending.
There needs to be a balance, and it's all too easy to take it too far and sacrifice health for example. Or social interactions.
I'm not going back to fiat either, but
Non-custodial and self-custodial mean the same thing.
It may be that, but there is probably more.
I was baffled when he asked me "Does the value of your bitcoin still go up when you hold it in self-custody?" It shows how little he understands.
Thank you for the thoughtful response.
We're quite a bit older :)
I don't think J is able to save that much, but she got a windfall a few years ago. I wasn't even a bitcoiner back then and suggested putting it into an S&P 500 ETF, but she had some resistance against it, so she left it rotting in the bank. It has probably lost 40% of its purchasing power since then.
Yes, B is going to get scammed. Not his first time, and probably not his last, he doesn't seem to be learning.
I probably care about S the most at this point. As I may have mentioned before, if I sent him some corn he'd probably lose it.
It can be intimidating indeed, but I don't know if it's that or something else, maybe it's just him saying one thing and doing another.
I had offered a long time ago to help him get set up, he knows he can ask me anytime.
Thanks. Where I'm based River is not available. S has WoS on his phone, I sent him a symbolic amount a few months ago, but he needs to get set up to stack sats himself.
If he has to expose himself like that, putting it on the front of his t-shirt and not the back could offer him marginally more protection against a $5 wrench attack.