@bschinski
Bitcoiner since 2020
No relay list published yet.
Recent Notes
He’s either embracing getting absolutely worked and leaning into it by trolling or he knows he’s about to spill all of the Deep State election fraud tea and get a cushy pardon and get sent to live...
He’s being tried in NY, so most likely Riker’s Island.
This penetration into the bond market is a third Bitcoin reactor, converting fiat to Bitcoin. These reactions in the commodities, equities and bond markets will continue until all fiat is converted. The vicissitudes of human behavior will determine the rate of the reaction. We can expect to see fear and greed seesaw result in volatility, not unlike the ocean's tide coming in a series of waves, with an eventual high tide a certainty.
Here’s what I’m seeing:
Until 2024 Bitcoin was part of the commodities market, which along with gold and silver, is about 25 Trillion in size.
With the advent of Bitcoin ETF's Bitcoin entered the equities (stock) market, about 175 Trillion in size.
Now Bitcoin has entered the bond market which is about 687 Trillion, roughly four times the size of the equites market. It has entered the bond market through Microstrategy and firms that are copying their example like Marathon Digital, Metaplanet and Semler Scientific.
Quick review:
The bond market is comprised of borrowers and lenders. A bond is a contract that spells out the details of the loan.
The borrowers, for the most part, are nations and corporations who have a current need for funds that they will repay in the future at some higher amount. This to entice the lenders to provide them the funds.
The lenders, who buy the bonds, are usually corporations or individuals who wish to preserve their capital but also generate a safe return in the form of interest or a gain in the value of the bond.
Borrowers who can provide their lenders with a higher than average return or a safer than average return have an advantage in the market and will attract investors to their bonds who would have otherwise invested elsewhere.
These “Bitcoin Bonds” are based on the hardest, scarcest money there is. Suddenly they are in competition with fiat bonds which are subject to deterioration due to inflation or regulation. In addition there is a flywheel effect enabling the issuer to buy more Bitcoin which in turn enables them to issue more bonds.
I believe it is only a matter of time until these bitcoin bonds dominate the bond market, forcing a revaluation of dollars vs Bitcoin.
Until 2024 Bitcoin was part of the commodities market, which along with gold and silver, is about 25 Trillion in size.
With the advent of Bitcoin ETF's Bitcoin entered the equities (stock) market, about 175 Trillion in size.
Now Bitcoin has entered the bond market which is about 687 Trillion, roughly four times the size of the equites market. It has entered the bond market through Microstrategy and firms that are copying their example like Marathon Digital, Metaplanet and Semler Scientific.
Quick review:
The bond market is comprised of borrowers and lenders. A bond is a contract that spells out the details of the loan.
The borrowers, for the most part, are nations and corporations who have a current need for funds that they will repay in the future at some higher amount. This to entice the lenders to provide them the funds.
The lenders, who buy the bonds, are usually corporations or individuals who wish to preserve their capital but also generate a safe return in the form of interest or a gain in the value of the bond.
Borrowers who can provide their lenders with a higher than average return or a safer than average return have an advantage in the market and will attract investors to their bonds who would have otherwise invested elsewhere.
These “Bitcoin Bonds” are based on the hardest, scarcest money there is. Suddenly they are in competition with fiat bonds which are subject to deterioration due to inflation or regulation. In addition there is a flywheel effect enabling the issuer to buy more Bitcoin which in turn enables them to issue more bonds.
I believe it is only a matter of time until these bitcoin bonds dominate the bond market, forcing a revaluation of dollars vs Bitcoin.
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I think they are going to try and prop up the system with Tether. Basically run the playbook that nostr:npub1s33sw6y2p8kpz2t8avz5feu2n6yvfr6swykrnm2frletd7spnt5qew252p explains here and everything pla...
Because the dollar is a debit-based money, inflation is inevitable, Tether or no Tether. Once people grasp this, they will migrate to Bitcoin. Unfortunately, this realization may not hit until Bitcoin hits $500k - $1m.
When the dollar was back by gold, hard money, the dollar was not a big problem.
The lack of hardness in the dollar is the real problem. If a Bitcoin national reserve is created, the dollar can again ...
Bitcoin cannot make the dollar what it is not. Even if it could, there is no benefit in doing so. The world will inevitably migrate to the harder money. But there is an advantage to be gained by the US trading its gold for BTC. That would be a step in the migration.