Youโre early in Bitcoin to make relatively good returns, like outperforming the S&P 500 and blue-chip stocks. But youโre late to make life-changing amounts of money. But that can still be done with other cryptocurrencies or crypto-related stocks, like treasury companies.
@saylor Normal. In 2013 bitcoin was still very speculative and new. When Michael joined, it was well established but still with a long way to go. It's difficult to support experiments at the very beginning if your not an insider, and actually, it is better to wait.
@TheBTCTherapist $250k would be ~2x from the previous peak. It wouldn't be a big break of the trend of diminishing returns. Possible with some catalyst.
Strategy with 0% net leverage.
Bears in shambles.
The bid for BTC will be stronger than ever before.
The world has not witnessed a perpetual preferred powered BTC bull run.
We're in a new regime.
๐ฉ๐
What many misunderstand about prefs is that they think the 13% is the hurdle rate. It isn't.
The hurdle rate for $SATA issuance to be profitable over 20 years is 6.6%. This is because the 13% yield is not compounded, vs compound growth for bitcoin.
So all bitcoin growth over 6.6% compounded goes to common shareholders (if dividends and cash reserve come from common).
Do the maths.
$13 x 20 =$260.00
$260 + $100 principal = $360
$100 x (1.066)^20 =$359.04
@alex_hunter20 So, if they unlocked all in this cycle, yes, it would be a hurdle for the price to moon like that. The unlock would have to take many years.
@alex_hunter20 The locked tokens don't have an influence in the immediate supply and demand dynamic that determines the price, so, what matters if it does a 15x is the current market cap. The unlocked tokens may change things, like crashing the price, when they are unlocked.
@danheld It should be 0%. The same things costing the same over decades would be very good for people. People would not worry about their money and assets depreciating by external factors, It would be a more trustworthy system. There is no logic why 0% inflation would affect the economy.
@Justin_Bons The other use cases of crypto are not wild either: payments and tokenization. Two simple concrete use cases; still a big business.
Bitcoin's use case is as a store of value. Any crypto could fill that role, but Bitcoin claimed it first, and it'll be very difficult to dethrone.
Gold is roughly 20 times larger than Bitcoin.
Global equities are roughly 100 times larger.
Global real estate is more than 250 times larger.
But somehow people look at Bitcoin and conclude the opportunity is already gone.
The human brain is terrible at understanding scale.
Most people have horrible jobs, like cleaning, waiting tables, delivery, Uber, customer service, etc. Who really wants to do that? Of course, we need a universal salary and destroy those jobs. Cool!
They say AI will destroy work. I say, good. Because what we call work today has destroyed us - our creativity, our families, our purpose. Time to let machines do machine work. Humans can be human again.