The inspiration from this post comes from this YouTube video
In summary Lit Nomad talks about how most people are triple long.
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Long their job by earning a salary and benefits from their employer.
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They are long their house. Buying a home next to the company.
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They are long stock in the company they work for.
Lit Nomad mentions an example of his friend:
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They worked at Exxon Mobil. Earning a high salary. 2 They purchased their home near the Exxon Mobil campus which inflated housing costs.
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They earned cheap stock options as part of their compensation package.
But as soon as the recession came and they were laid off they lost everything and had to move back near their parents. Lit Nomad talks about hedge funds and why people use them to counter act the triple long positions most middle class and upper middle class Americans find themselves in.
Which got my thinking 🤔. How can a bitcoiners be triple long or even better be quadruple long?
Here’s How:
1. You own Bitcoin in cold storage, lightning
This is self explanatory. You take your fiat you buy bitcoin and you store it away. Very low risk approach to securing your future by protecting your purchasing power.
2. You mine bitcoin
Now you are adding risk. The mining can be self hosted or via a contract from kaboomracks or compass mining. Depending how much you get into this you can really get rekt if you aren’t careful and you will lose all the bitcoin you accumulated in step #1. But paying a fiat power bill to get fresh sats from the mempool is a godly feeling.
3. You buy stocks that are in Bitcoin
This includes companies that own Bitcoin or work on Bitcoin. Publicly traded mining companies (which makes it a derivative of 2 because if you own the stock they don’t send you the sats they earn). Companies that hold bitcoin on their balance sheet like Tesla, Block, MicroStrategy, and others. Also going long stocks only gives your more fiat but as Bitcoin does well so should these companies in theory.
4. You invest in Bitcoin startups
Now you are officially
Quadruple Long Bitcoin!I think startups have a 90% fail rate. If your product fails to generate revenues and venture capitalists pull their funding then your startup dies. Or it can die because of regulatory risk or lack of product market fit. Instead of being humble and putting that fiat right into Bitcoin and increasing your stack you are taking a risk by putting into a startup that may fail thus the sats opportunity cost can be quite great.
But if one your startup companies take off 🚀 . You can make great fiat profits which then you can buy more bitcoin with. My long term hope is that these startups become 20-30-50 year companies and they pay their shareholders in bitcoin dividends! That is the dream
Final Thought
If Stay humble and stack sats is your mantra then ignore this post. But if you are looking to go Quadruple long for the most bitcoin returns you can possibly dream of then roll the dice and go QuadSet Long Bitcoin