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Meanwhile in NFT land...    

My bitcoin has been going nutssssssss! Up 70% in the last month and almost 1000% this year! Gimme the loot baby!    Edit: when bitcoin was first developed I started mining it and had al

The first rule of crossfit/Crypto: always talk about crossfit/crypto

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So, if you are accredited investor you can get involved in a trust and get paid a yield on your coins while they custody it for you too.  These new things are popping up everywhere.  NYDIG is a place to look for those who have big accounts. 

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Even though I disagree with 90% of his takes, I'd like everyone to get BTC correct.  Why people do not get math and logarithmic movements:  BTC going from $57K to $1M right now is the exact same % increase as going from $3.2k in March 2020 was to the current price of 58K.  So if you think 1 million is ridiculous, realize the move happened already.  History tends to repeat itself. 

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Bongo's argument about compound interest makes me feel awkward.  There's no dividends in BTC -- only a bet that it will be more popular in the future.

BTC is an underused commodity, that's all.  It doesn't return anything in and of itself.  However it's a better commodity than most commodities, so there's an opportunity right now.  I don't think it will last forever.

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2 minutes ago, Supdawg said:

I believe he's talking about lending it out and getting interest. 


Yes, but the risk is just too high.  Loan someone $100 of BTC, they spend it, it spikes, and now they owe you $4m of BTC.  How would you rate someone's credit for that kind of spread?

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1 minute ago, patsplat said:


Yes, but the risk is just too high.  Loan someone $100 of BTC, they spend it, it spikes, and now they owe you $4m of BTC.  How would you rate someone's credit for that kind of spread?

BTC lending is overcollateralized typically 2X. To borrow 1 BTC, you would need to hold 2 BTC in escrow. If the price dips 50%, a margin call is made and if you don't post, you're liquidated. It's not traditional fractional reserve. 

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Right now, lending is paying big yield because there is a huge spread via arbitrage on the futures market. This can basically be a risk free 20% and is getting very popular. 

 

BTC as collateral will be absolutely pristine in the future. Many people believe that you should be able to borrow against your bitcoin (and never sell) infinity as the price appreciation goes up faster than the interest you pay. As soon as the price goes up, you can borrow more money as your LTV goes down. The upside is you never incur taxes if you borrow vs cashing out. There might be a world where no one will sell you their BTC. 


This is exactly what Saylor is doing with Microstrategy. 

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Just now, patsplat said:

@OILERMAN I am starting to feel uncomfortable

The funny thing... Is these companies are doing the same thing with their stocks. They are refinancing their debt and borrowing more money to do stock buy backs. What Saylor is doing is the equivalent of a stock buy back, but 10X better. 

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2 minutes ago, Supdawg said:

The funny thing... Is these companies are doing the same thing with their stocks. They are refinancing their debt and borrowing more money to do stock buy backs. What Saylor is doing is the equivalent of a stock buy back, but 10X better. 


It is crazy how much leverage there can be in the markets

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