I always thought it was another lane in the highway to subvert physical demand for gold, but I never thought of it that way. Back then all money never left the banks and went into the economy, it was just plugging holes in their balance sheet. It would make sense for them to use it in this way.
That Michael Saylor is a con man though and when he gets rug pulled it's going to get ugly.
Bitcoin at ~$6.7M makes it the #1 asset in the world @$135T (on par with whole world GDP at that time) and makes MSTR the most valuable company in the world. This is expected to occur sometime in 2030-2032 timeframe. Saylor's/MSTR's 4x "Bitcoin bonds" each hedge risk in a precisely different way and encourage capital flows out of fiat by large corporations. He is the face, but not the true financial genius at MSTR.
No doubt it's had temendous success but the issues started when it became financialized and it will be beholden to it. While it's touted as digital gold it doesn't trade like it, and it doesn't have the same dynamics of the gold market.
Saylor is adopting Hunt Brother tactics that won't end well and should never have been allowed to build such a net concentration, and at the expense of printing preferred shares and dilluting shareholders. It just reeks of ponzi, and the moral hazard as well knowing he would need to get bailed out if shit really hit the fan. Whether it's Saylor or not, I forsee MSTR going the same ways of LTCM finanial wizardry.
I always thought it was another lane in the highway to subvert physical demand for gold, but I never thought of it that way. Back then all money never left the banks and went into the economy, it was just plugging holes in their balance sheet. It would make sense for them to use it in this way.
That Michael Saylor is a con man though and when he gets rug pulled it's going to get ugly.
Bitcoin at ~$6.7M makes it the #1 asset in the world @$135T (on par with whole world GDP at that time) and makes MSTR the most valuable company in the world. This is expected to occur sometime in 2030-2032 timeframe. Saylor's/MSTR's 4x "Bitcoin bonds" each hedge risk in a precisely different way and encourage capital flows out of fiat by large corporations. He is the face, but not the true financial genius at MSTR.
No doubt it's had temendous success but the issues started when it became financialized and it will be beholden to it. While it's touted as digital gold it doesn't trade like it, and it doesn't have the same dynamics of the gold market.
Saylor is adopting Hunt Brother tactics that won't end well and should never have been allowed to build such a net concentration, and at the expense of printing preferred shares and dilluting shareholders. It just reeks of ponzi, and the moral hazard as well knowing he would need to get bailed out if shit really hit the fan. Whether it's Saylor or not, I forsee MSTR going the same ways of LTCM finanial wizardry.