I don’t know…I think this is old news.
If I have a fat bitcoin stack, I can cruise for a bit and out perform those who don’t. Wait until there is an opportunity to leverage my abilities on a deal / situation I want to leverage my abilities to.
Grind just for grinding’s sake is so fiat.
Always be improving? I can get on board with that. But always be building? Sometime “growth” (at least in the way modern culture means) isn’t the goal.
What are the best methods and tactics for managing email? The best client(s)? The best filing system? The best categorization strategies?
Eisenhower Matrix? Now, Soon, Later, Never? Color coding? Cross apps/hardware/email clients?
#AskNostr
Biggest takeaway for me from this episode … Bitcoin collateralized loans are currently charging a 3% management fee (!!) above the 11% investor returns. Not to mention origination fees. That’s insane.
Gonna be a lot of downward pressure on both yield and fees once the bitcoin collateralized loan product matures. Needs to mature soon, too, so bitcoiners who are not software developers can start utilizing bitcoin to manage real world assets.
Bitcoin collateralized loans are too expensive and way too short duration. Until there is movement in this market, hodling truly is sitting back and waiting to the deploy the potential energy stored in one’s bitcoin stack.
Even more reason to be concerned. The volatility of “bitcoin only” bitcoin companies is difficult to bridge through cycles. MicroStrategy’s core business has nothing to do with bitcoin.
For the network effects to come, we’re gonna need the influencer class to open their aperture a little more, follow more, and engage more plebs. NOSTR needs to be the place you can interact with most of the personalities who became codified over on Twitter. Not necessarily you…just in general. More conversations.
I know this exchange of time for bitcoin stack is what Pierre is doing at Riot but I see utilization of bitcoin stacks in another way. In order for bitcoin to fulfill its potential as money, it has to be used at capital. It is the hodlers dilemma: bitcoin outperforms all markets on a 4-year duration so why would you spend it?
If I’m not going to sell bitcoin but I want to buy tangible assets I think I can derive value from…the only other option is to collateralize loans with my Bitcoin … denominated in whatever currency the seller of the asset will accept.
The crux of that strategy is that the use of capital from those bitcoin collateralized loans has to beat return on equity expectations. Its “debt vs. equity” competition not “capital investment vs. bitcoin” competition.
In that way my bitcoin debt becomes the equity underwriting conventional economic deals. And the competition isn’t outperforming Bitcoin, it becomes outperforming traditional equity - likely private equity where equity expectations are 20%+.
That being said, right now the bitcoin loan market is far too shallow and short-term (6 months) and expensive (14%) to deploy this strategy widely and with sufficient risk-management to ensure you don’t lose your coins chasing projects but I believe it is where we are heading.
Ultimately Bitcoin has to engage in the real world in real financial markets.
There needs to be downward pressure on interest rates and outward pressure on duration for bitcoin collateralized loans. Only in that way will Bitcoin start to act as capital competing in the marketplace.
As an aside, in @MartyBent rip with Matt Dines, Matt says these loans have a 3% fee!? Crazy expensive…I’m guessing just because the market is so shallow and they have to keep people employed. I would expect that goes down over time.
cc: @bitcoinpierre@preston@LynAlden@Jeff Booth@jack@ODELL
But at some point it has to go up. Otherwise it doesn’t “fix the money.”
Class of 2021 over here waiting for our first clear price action move to clearly hurdle our cost basis.
Personally, I’m not looking for $1M in the next few months…but I do think a significant appreciation (say $250k) is important validation for the newbies who have been stacking their hearts out.
If you can’t build wealth and deploy capital to build cashflow and change the world, then a lot of this bitcoin movement is virtue signaling…preaching to the choir.
The bitcoin OGs who are dismissing price action are moving the goalposts.
Again … the OGs need to zoom in … at least to the 2020/21 class … I’m widely aware of what you and others enjoyed during prior cycles. But the last 4 years have been mostly flat to down…at least relative to the “zooming out” you suggest.
Any maxis in the Class of 2021 who got into bitcoin because of covid have not yet experienced the personal validation and financial freedom you’re suggesting comes from “zooming out” … and it has been 4 years of stacking.
Funny we live in a culture that glorifies CEOs even when they weren’t particularly good at their primary, legally-defined objective: delivering shareholder value.
Ginni Rometty was announced as IBM’s CEO October 25, 2011 and it was announced she was stepping down January 30, 2020. A decade of poor performance.
The lack of accountability is a huge bug in the credit-focused fiat system.
#Bitcoin fixes this.
https://m.primal.net/Kkwj.jpghttps://m.primal.net/Kkwv.jpghttps://m.primal.net/Kkwm.jpg
One thing that has helped me manage the volatility of being a bitcoin hodler is being an Auburn Tiger football fan.
The highs are higher and the lows are … well … losses to Cal.
War Eagle anyway! #WarEagle #WDE
The newly oil rich government of Guyana needs to be consulted on the merits of bitcoin adoption.
Fewer than a million residents. They will have the highest GDP per capita in the world. An antagonistic neighbor (Venezuela). They’ve got one of the best situations to create a (LARGE) strategic bitcoin fund of any sovereign nation.
No issues with her gall bladder. She really wants to eat pure carnivore but each time it has happened to her, she has had to reintroduce carbs. It just keeps us both from going full carnivore for a long period of time, mostly because of convenience. Looking for advice of how we can simplify the diet to increase the duration.
Feels good, likes the diet. Just doesn’t want to have permanent scarring from the rash. She’s pushed through it a few days and it only grows and gets darker.
No matter the original intent, the modern day TSA is an entrenched jobs welfare program. If I am feeling antagonistic, I’ll debate that it serves as a mass humiliation ritual … one of the only ones the population will go along with.
The model works until it doesn’t. Just like S2F … if any major government / company decides it’s going to buck the dollar in order to cement its future relevancy, every model out there becomes irrelevant immediately.
Okay, so you’re saying the power law model gets the timing right on bitcoin’s mass adoption? Because every pricing model is trying to represent the timing of bitcoin’s price appreciation, right?
I think the macroeconomic backdrop will accelerate bitcoin’s price performance to outperform the power law model.
The amount of easing required to “fix” the treasury markets globally is going to be silly.
Bitcoin mining is a ruthless competition. If a bitcoin miner is paying too much for electric, they will eventually go bankrupt and turn off.
Electricity is a primary cost of Bitcoin miners. Bitcoin mining is geographically agnostic, modular, interruptible demand. Bitcoin miners will find the pockets of free electricity wherever they exist.
And waste, curtailed, and stranded energy sources are plentiful out there in the real world. Eventually Bitcoin miners will be mining exclusively with “free” electricity. Or they will go bankrupt.
nostr:note1muv97vmgm6c47c2xp820020007py0erc3hc7l2258s8h29vvv40s2njayl
Monetizing the waste lowers the cost of the primary offering. Bitcoin mining will be complementary to, not competitive with, retail electricity markets.
You should consider these efforts as writing for yourself. The concept of writing (especially content on social media) explicitly for the consumption by others is part of the problem.
Okay, I’ll take that premise. But I think the hurdle for writing for others is “what do you have to say that is unique?” … if you don’t have anything unique to say then I would challenge that you (1) should write for yourself or (2) should not write for others at all.
The valuation change is likely permanent but do you think the funds believe they can push a few years down the road?
As with most things, timing matters. When will the CRE credit crisis hit? If banks and investors are okay changing terms and delaying payouts couldn’t this futility last several years?
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