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88 sats \ 3 replies \ @Undisciplined 14h \ parent \ on: Personal Finance Musings: To Bitcoin or Not to Bitcoin, That is the Question econ
You're the one who's uncomfortable with bitcoin's sudden plunges.
This seems like a cleaner way to be in bitcoin without needing to worry about short term cash flow.
OK, here's something.
MSTR has derivative value off bitcoin -- not always symmetrical or in tandem, but broadly speaking MSTR's value stems from the bitcoin it holds.
STRK (the 8% dividend +convertible instrument) pays me 2% every quarter, while in the limit it is (=becomes) bitcoin. Given that Strategy mNAV doesn't blow out (to 2-3-4x), it'd only be a matter of time until whatever sum I hold in STRK turn into MSTR (...which, remember, is bitcoin)... but I'm paid every quarter for doing this.
Maybe there's some major flaw in this reasoning but it does seem to dampen my swings while not returning to tradfi/banks and staying mostly bitcoin.
Makes sense?
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Makes sense?
No, but I'm confused whenever the No Arbitrage Condition is seemingly being violated.
If you think you understand it, then it's what you should do.
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I wonder if it's something about the lock-up, a corporate security/financial instrument that signals savings over potential consumption.
I'll think more about it
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