People decrying $MSTR's #bitcoin bank endgame probably don't realize that Hal Finney foresaw this as the endgame for bitcoin more than a decade ago. Though I think we should still strive to build first-class self-custody solutions to keep the system honest.
@btc_overflow Bitcoin banks can also require much less trust in them than traditional banks, as they can provide services without taking custody of assets. Operating as a Lightning Service Provider is a good example.
It’s of my belief that Michael Saylor and MicroStrategy are preparing to cause the financial world to shift into a Bitcoin standard. The first image goes through their precise strategy and that also marks the first company in the entire world to ever do anything like that. Being the first main adopter of the world’s next technological advancement is how all the historical figures created infamous wealth and riches (Rockefeller and oil, JP Morgan and railways, Andrew Carnagy and steel), the modern day version of this is Michael Saylor with Bitcoin. During the economic downturn of 1873, the value of the US dollar was spiraling because the United States gold reserve was being depleted by government spending. JP Morgan recognized this before anyone else and knew he had to do something in order to save the dollar from being completely debased by other country’s currency’s that were backed with the most gold. So, he took matters into his own hands and reached out to who he knew had the most gold in the world, the Rothschild’s. They’re the family responsible for creating every central bank in Europe. Well, JP Morgan was able to save the dollar because he secured a loan from the Rothschild’s for enough gold to fill up our reserve and back up our government’s dollar again like nothing had happened. I wholeheartedly envision a future where the US government is going to reach a point where they will have to bargain and plead with Michael Saylor and Microstrategy to bail out the us government’s total debt and build a new currency on top of Bitcoin (which is where my partners and I step in) by funding this project through our private investment fund @bitcoinprophets
@btc_overflow Fractional bitcoin banking, way to bring the old world into the new, this is not what mstr is doing and I hope they don’t
@btc_overflow Weird seeing a rush of $MSTR haters. @saylor is a titan of innovation & biz acumen. His series with @Breedlove22 is ~18 hours of tremendous value. I took Economics of Business at H, and read a lot of Coase, et al., (& the history of firms). All we did was read published…
No that is a lightning node. I run one. Mstr is doing something different. it's not the bank part I have a problem with. Also, if way more companies were doing what mstr was I wouldn't have as much issue especially if there were distributed custodians. I don't like the shape this is taking. It's too centralized
Many feel MSTR has moved too far, especially considering its price to NAV. All this assumes that BTC will remain at its current price level for the foreseeable future. Compared to BTC, MSTR seems to have gotten ahead of itself BUT consider the following. 1) During the last 3 BTC cycles, the average return before peaking in the calendar year after the halving was over 1000%. These returns are likely to come down but worth a little consideration. 2) Since late 2020, MSTR upswings and downswings have preceded those of BTC. 3) The peak of the last three cycles was 12 months, 17 months & 17 months after the halving. Considering September is the weakest month, that puts the peak for MSTR / BTC for this cycle arriving sometime between May and August of next year. 4) BTC and MSTR make no sense from a cash flow perspective. The best mathematical model most point to is the stock to flow model. Coinglass shows a $110k valuation for BTC currently which would still make MSTR overvalued. 5) If we look at the BTC target stock to flow price over the next 6 months, BTC will move past $425k even without a huge blowoff top like in 2013 and 2017. Compared to this, the MSTR price to NAV is more reasonable. 6) Those studying BTC sometimes have a hard time reasoning out why the price keeps moving exponentially even after 10 years. I would point them to the expanding debt and currency devaluations around the world. Study what Michael Saylor has to say. Also study history and the ability of governments to confiscate gold, property, bank accounts etc. 7) Enjoy the ride and HODL. The chart below shows how MSTR tends to lead BTC.
Exactly. Hal Finney had incredible foresight into how #Bitcoin could evolve into a reserve currency for Bitcoin-backed banks. The $MSTR endgame is just one potential step in this direction. However, self-custody remains paramount for decentralization and accountability. We should always push for strong self-sovereignty solutions to ensure a healthy balance in the system. #BitcoinBank #SelfCustody #MSTR #HalFinney #Bitcoin
@btc_overflow Stable, inflation resistant, self regulating, and micro-competitive: chaos 🤓
@btc_overflow The word “bank” just seems to break some people’s brains.
@btc_overflow It’s all cringe now. Boomers pumping like tik tokers. The cult is doomed
@btc_overflow thought-provoking perspective on verticals. bitcoin integration transcends industries, unlocking untapped potential.
Let's assume MSTR becomes a Bitcoin Bank. Why would it trade at 2.5x of NAV? Saylor is a marketing genius and $MSTR was the first real option for some investors to invest in BTC before spot ETFs came along. Blackrock & Co. would become bitcoin banks as well, with commoditization and competition etc. What is the advantage that MSTR has that would justify paying 2.5x BTC for each BTC owned via MSTR vs direct ownership?
@btc_overflow I don’t see what Saylor is doing as an endgame; it gets bitcoin on balance sheets. The endgame gets bitcoin as the underlying asset for issuing currency/credit, as Finney describes. Playing with equity arbitrage won’t change the nature of banking systems.
@btc_overflow MSTR is a honeypot for government seizure. Imagine storing your coins at Fidelity and Coinbase.
@btc_overflow Hello, can you like my homepage post
@btc_overflow @r0ckstardev Bitcoiners against Bitcoin banks frequently advocate risky forks or outright shitcoin.
@btc_overflow There's literally not a way to do self custody for the world with Bitcoin. It must be intermediaries to work at all. This is just one issue with it!