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0 sats \ 0 replies \ @SpaceHodler 30 May \ parent \ on: 55% of Americans have three months of emergency savings econ
Do you know why they don't invest much? I've heard only 1/3 of the Japanese population invests.
I know part of that is the NISA accounts, which are tax-free, but only allow Japanese stocks, which are non-performing.
It's a really peculiar money culture from a Western POV.
Some of them will fail. It's the investor's responsibility to do their research.
Metaplanet is positioned very well though. I forgot to mention in my point about regulatory arbitrage that interest rates in Japan are near zero and the Japanese market is yield-starved. MP can raise capital at much lower rates than MSTR.
15 sats \ 0 replies \ @SpaceHodler OP 29 May \ parent \ on: Sat stacks to live long? ideasfromtheedge
Cool, I wasn't sure, but it's not surprising.
There are also many more people and people can afford more.
All it is doing is enriching the insiders of these companies.
Not only the insiders, but also many investors.
Bitcoin holders probably get crushed too when Bitcoin treasury companies going bust or being forced sellers is the catalyst for the next bear market.
There has always been leverage in the system and Bitcoin liquidations are nothing new; they happen every day. Some people buy it on 40x leverage and some of them get rekt.
Normal market dynamics, which Bitcoin holders know what they're holding is subject to.
The bear markets are getting shallower, and when they do occur it's an opportunity to stack cheaper.
I don't think the next bear market will be deeper than the previous one. MSTR's leverage is now down to 1.09x.
It can't last forever (no company does), but can last for a while and grow the company's valuation. Eventually the mNAV may drop to 1 or below. The bet is that for the shareholders that get in early, the increase in sats per share by the time that happens will make up for it.
Some investors will lose in BTC terms, just like in traditional stocks some investors lose in fiat terms.
It's just another market inefficiency that's inevitably being exploited.
Many companies can still have a competitive advantage due to regulatory arbitrage, stranded capital etc. In the UK people can't buy the ETFs and have exposure to BTC in tax-advantaged accounts; in Japan BTC is subject to 55% capital gains tax, but you can put $80k / year into a tax wrapper that only allow Japanese stocks.
I see this as the next stage of Bitcoin adoption as a SoV.
Bitcoin is filling the cracks in the heavily regulated and discretionary fiat system, full of arbitrary rules and restrictions.
Some of these companies will blow up due to excessive leverage, just like fiat companies go bust. There will also be hacks, lost keys and Enron-style fiascos. For an investor it's a gamble, just like any investment is.
I think it is stupid for zombie companies to keep themselves afloat by using bitcoin as a gimmick to get attention and attract capital
Why do you think that?
At this early stage of adoption, judiciously raising cheap fiat capital to buy bitcoin can be a great business model.
It's not a gimmick. It's just a smart thing to do.
My cash doesn't disappear in the laundry. I keep all my coins in one coin purse.
My notes are split between my wallet (usually around £40-£50) and in a dedicated bag at home.
Dollar dominance is similar to bitcoins dominance
These terms require more clarification.
Presumably by "dollar dominance" you meant the USD's share among state-issued fiat currencies, and by "bitcoins dominance" you meant BTC.D? (which includes non-state issued fiat currencies, a.k.a. altcoins, including stablecoins)
The cash flow from core business operations is not worth it. The best business in town is borrowing fiat to buy BTC using cheap corporate financing, and exploiting inefficiencies arising from trapped capital.
You just do whatever is the most profitable. If you had a real estate portfolio as a bitcoiner, would you buy more properties or more BTC?
MSTR is a $100B+ company, their BI business only generates $50M or so, they can't possibly scale it up.
One day there will be things that are more profitable than buying BTC, but at 1% or whatever adoption we have a long way to go.
Is it that different from buying subsidized goods from your own country though?
The US subsidizes agriculture for example. What should a libertarian in the US do, stop buying groceries made in the US?
Let's also not forget that some people have Android phones and the official app stores can pound sand.
When I thought of paying to post, I imagined it as paying to every relay you post to, and read-only use being free.
I feel like saying what? You should meet @DarthCoin.
In the meantime, @DarthCoin:
Bitcoin gives option to easily short fiat to everyone.
To short fiat you need access to fiat credit. I don't think the average person in a developing country can take out a fiat loan to buy bitcoin.
There is also the replacement cost.
If a large entity wanted to buy a large amount of corn, they'd push the price up and their average price would be higher than the current price. This alone justifies a premium, as long as there is demand.