15 sats \ 17 replies \ @gd 5 Mar \ on: Will MSTR Outperform or Underperform Against Bitcoin? bitcoin
If Saylor's currency attack is successful— which I'm certain it will be, you might be able to get lots of dollars for your shares, but they'll be worthless... You'll never be able to claim the Bitcoin.
Recommended reading: https://theintrepidlife.substack.com/p/the-inflation-kings-cautionary-tale
write
preview
121 sats \ 12 replies \ @kr OP 5 Mar
do you also think all ETFs will be worthless?
reply
0 sats \ 11 replies \ @gd 5 Mar
The value of the currency that the ETFs are denominated in (and pay out in) will be worthless
reply
115 sats \ 10 replies \ @kr OP 5 Mar
let’s assume the US dollar goes to zero and is no longer a currency one day.
do you believe the ETF holders will see all their Bitcoin ETF shares disappear?
i don’t.
reply
0 sats \ 9 replies \ @gd 5 Mar
Not at all, but they won't be able to redeem anything of value with the ETF shares.
reply
10 sats \ 8 replies \ @kr OP 5 Mar
why not?
if you can’t “redeem anything of value”, you’re essentially saying the ETFs will go to zero.
reply
0 sats \ 7 replies \ @gd 5 Mar
Because they're a claim on dollars, not Bitcoin— you said "let's assume the US dollar goes to zero"
reply
21 sats \ 6 replies \ @kr OP 5 Mar
Because they're a claim on dollars
Are they really though? I think ETF holders will be compensated in the event of a US dollar collapse.
reply
0 sats \ 5 replies \ @gd 5 Mar
They’ll be compensated in large sums of dollars. ETFs are contracts which have iron clad terms.
There would be no obligation to suddenly compensate people with something infinitely more valuable than they are contractually obliged to. Especially when the advice has always been “your investment can go to zero, don’t invest anything you’re not willing to lose”.
The recommended reading link I posted in my original comment is a concrete example of that from history.
view replies
110 sats \ 1 reply \ @jillofallcoins 5 Mar
True, but it also depends on if/when you sell off and what you do with those earnings (i.e buy Bitcoin). It's worth mentioning Microstrategy's moving towards a Bitcoin company, which may offer more revenue streams and potentially ways to convert stock into BTC.
reply
0 sats \ 0 replies \ @gd 5 Mar
The ability to convert equity to BTC would be nice, but would they offer that? Maybe they ask for a premium to compensate for the risk?
reply
100 sats \ 1 reply \ @jp30566347 5 Mar
Fiat rewards is still fiat.
Saylor will certainly become Most Wanted.
reply
10 sats \ 0 replies \ @gd 5 Mar
Absolutely. Strive to own as many hard assets as possible, do not strive to gain as much money as possible.
reply