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173 sats \ 2 replies \ @tenderscore 2 Jul 2022 \ on: 🟠 How do you justify investing in any Bitcoin/Lightning Companies instead of just bitcoin itself? bitcoin
It isn't just bitcoin companies, but should become all companies of value over time, and eventually I'd like to strip cheap equity off erstwhile hegemons with bitcoin's moon. Meaning:
If the money is BTC, and Ford is paying its dividend in BTC, and earning profits in BTC, I want Ford in my portfolio too in order to make + BTC. If Riot Blockchain pays BTC dividends, it's an early example of that, and the same goes for some of these BTC/LN companies like BLOCK et al. The wealth transfer is BTC becoming the money people spend, save in, and what everything is settled in; with the twist of being a deflationary system that "recycles money, energy, and prosperity" as this somewhat underrated post taught me:
https://www.reddit.com/r/MadMaxi/comments/vivv4w/industrial_money_my_final_post/?utm_source=share&utm_medium=web2x&context=3
But yeah, that's my reply to your question, I could be wrong, just where my logic has lead me. 🤷♂️
Thanks for all your insight here, and the post you linked was a fantastic - really good read and ideas on energy/bitcoin correlation and true decentralization. Thanks for linking that.
Everything you mention makes sense to me - whether Ford, Block, etc - I want a cashflowing business with strong fundamentals in my portfolio, and as the money system moves to bitcoin denomination, I will be able to increase my Bitcoin holdings.
That wealth transfer you mention is where I'm still hung up...
If it's a "slow" transition (ie longer than my remaining lifetime), then I want to invest in any company that produces the best risk adjusted returns. If Bitcon adoption is very slow, this favors more of a traditional company (let's just call in $MSFT, $AMZN, $F).
I guess it's this "medium term transfer" where we get some steady transfer of wealth to Bitcoin - which offers some sort of favorable "blue ocean" to Bitcoin/Lightning companies in a new market. So maybe this is where the best risk adjusted return is for investing in Bitcoin/Lightning co's (good business fundamentals, a new market, and steady adoption rates)?
But in a "fast" transfer of wealth scenario - if hyperbitcoinization occurs anytime in the next 20 years let's say - then it seems the value increase of my Bitcoin savings far outweighs the return on any Bitcoin/Lightning company - especially given the risk correlation?
I don't claim to have some formula or answer, just thinking out loud here...I guess a lot of the analysis depends on the timeline of the overall adoption/wealth transfer and how that models into the portfolio co's fundamentals?
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This.
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