Trump promised to make America the Bitcoin capital of the world to win crypto votes and donations while his family cashed in on their crypto ventures. Mission accomplished: Since America squandered the most capital on crypto, America will suffer the most when the bubble bursts.
$STRC is trading below $96. Risk-averse retirees who relied on @Saylor's assurances that STRC was suitable have already lost more than 4% of their principal. At this point, the only way to get the share price back to $100 is to raise the dividend to 12%, increasing the cash burn.
Republicans made the mistake of hitching their wagon to the Bitcoin express. When it goes off the rails, Democrats will have a field day blaming the trainwreck on Trump and the Republicans. They'll also exploit the losses to promote even more government regulation of investments.
$STRC is down to $94.85, putting the current yield at 12.12%. The lower the price falls, the higher $MSTR will have to increase the dividend to bring the share price back up to $100. That means MSTR will run out of cash much sooner, pulling forward Bitcoin sales to fund payments.
Most $STRC investors will lose most of their money, as the price of STRC eventually collapses when @Saylor is forced to terminate the dividend. Expect a flood of lawsuits to add to $MSTR's problems, as investors burned by deceptive advertising seek to recover their losses.
When I spoke at that conference, Bitcoin was trading near $110,000. I said the conference likely represented the peak of the mania. A blow-off top. So far, it looks like I was right. Attendees who followed my advice and sold their Bitcoin are certainly glad that they did.
At its current price, Bitcoin is actually trading below the peak it first hit in April 2021. That's over five years ago. @Saylor expects Bitcoin to rise by over 30% per year over the next five years. But over the past five years and two months, its total return has been negative.
If Bitcoin is lower today than it was in April 2021, why should future returns be any better? What could possibly happen over the next five years that is more bullish for Bitcoin than what has already failed to move the needle over the past five years? The party is clearly over!
There are so many young, unqualified people in the crypto industry giving financial advice. They think they are smart just because they bought into Bitcoin early and made some money. But they are also too young to know the old saying, "don't confuse brains with a bull market."
I wonder if a Bitcoin crash will be a harbinger of things to come in risk assets in general, or if it's just a one-off thing confined to Bitcoin and crypto. Whichever it is, we should find out soon enough. Maybe it will also be a catalyst to drive investors into value and safety.
@BullTheoryio People should understand there have been terrible consequences when we try to manipulate Nature. Many transplanted species of plants and animals have altered or taken over environments and caused havoc. I'm all for science, but it's in man's nature to seek to control everything.