Damus
satoshi jr · 1w
I'm not smart enough to understand what you mean Don't treasury companies arbitrage the difference in rate of bitcoin growth and cost of borrowing? How does using bitcoin as currency change that?
Jeff Booth profile picture
Like gold - if you build derivative games on top of bitcoin (inflationary money) and people use it, and try to get higher interest rates in it to keep up with prices going up, many people will choose that (they need the income to support prices unnaturally rising and it “seems” like a safe bet. That centralizes bitcoin and the store of value ceases to be a good store of value because the rules change (Like gold)
Fortunately, this is protocol and the nodes matter. When that day arrives- and it surely will if this continues, there will be a fork and the coin that has the leverage on top of it versus the one being used in the economy will likely fail (as will all claims on top of it. (like bcash)
Just the long and winding road we must go through to for bitcoin to move us from a zero sum game to an infinite game.
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satoshi jr · 1w
Ah OK, So if i can reword it to confirm i understand: If treasury companies succeed in centralizing bitcoin the systemic risk is that they will have to fork to make the debt built on top solvent Could an mstr win by collecting the bitcoin using the debt and defaulting on the leverage on the fiat cu...