This is a little bit more macro, but you'll see what it is getting at. From one of the better posters around.
But what does it all mean?
Nothing.
Been hearing the same "financial collapse is imminent," "the US is in a recession," "we're in a bubble," "the economy is in trouble," "housing is unaffordable," "we're in real trouble real soon," fear mongering jargon for 50 years. (((Someone))) must be getting super rich on these fake news cycles.
Meanwhile, back at the ranch, there has been no on the ground discernable difference in the quality of life on American soil the entire time. If anything it has improved. That is if you are a lower middle class non-striver optimist who doesn't live his life trying to keep up with the Jones's while trying to "get somewhere" financially.
And where can we really get "financially"? Absolutely nowhere as you can't take it with you. Whether we like it or not we all live month to month. All sitting on a million dollars gets you is a false sense of security. A millionaire is just one car accident away from dying with a million dollars in the (((bank))). In other words, a million dollars is worth f*ck all if you're not spending it.
There is a real interesting existential credence to the motto, "Ambition is for those who are too stupid to be lazy," as the number one confession of those on their deathbed is that they regret spending too much time working for money, and not enough time just hanging out with friends and family and pursuing their hobbies.
Quantitative tightening ended.Hmm, what's happening now?
US Fed Ends QT with $13.5 Billion Liquidity Pump, Crypto Market Rally Ahead?
I read the FED just bailed out banks worse than 2008.
Economy is non existent. Inflation to come. Only assets will increase in value. Bigger gap between asset owners and non asset owners increasing. People should jump into the asset train while they still can. Real estate, dividends, maybe crypto for some.
2cents
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Heard on Mailbag Monday podcast that Strike will introduce lines of credit soon. That is going to be nice, instead of having to take out longer term loans, or sell bitcoin to pay bills (realizing capital gains) just have a rolling line of credit! That line can then be paid off with regular 12 month loans (or whatever).
That will be how I pay bills as soon as it comes out going forward.
That will be how I pay bills as soon as it comes out going forward.
Did you read it? It was pretty clear.
I don't think even trying to help you is reasonable any longer, if you are this detached from reality.
For every dollar you get a loan, you need $2 in bitcoin. Margin call at 65%. 13% APR.
Seems like garbage to me.
I had a decent amount of BAT that I was slowly accumulating for the last few years which I sold off this week now that it's had a bit of a run up as of late. Thinking of putting that money into one of the other big cryptos like XRP or SOL but seems like people were warning against XRP earlier in this thread not to mention people mentioning last month that it seems like we are in a bear market right now and haven't gotten even near the bottom. Any thoughts?
its what free market interest rate is...
unlike banks that can simply create the loaned dollars from nothing, real money is being lent.
The market intuitively knows that inflation is 10%, and is willing to accept a 3% premium.
Also, people and institutions on the lending side, who understand the value of bitcoin and the safety of this type of loan product, would rather just own the bitcoin, than lend against it.
The 200% collateral is designed to protect the borrower from a margin call (most of us don't want to lose our bitcoin)
There are good reasons for why the loan product is the way it is.
Thinking in bitcoin terms, the value of the loan decreases over time (like a mortgage but faster.) For easy math, lets say a $100,000 loan with 2 BTC collateral. At maturity in 12 months, $113,000 is due. An average bitcoin year is 50% increase in fiat price. To repay the loan, a new loan using only 1.506 BTC is taken out. 1 of those BTC was bought using the previous loan...you only need 0.5. The next year, it gets even cheaper, until its a miniscule amount.
This example is just for easy math, obviously you need to pay expenses if you don't have other income using a bigger loan, but as long as you are also buying more bitcoin with the loan, its cheaper than capital gains tax.
A "good" interest rate of 7% is only possible because banks don't need to actually lend the money, they create it as a balance sheet entry and collect the rent on it (without lending any actual money)
Yes, 13.5 is about the same as average hard money loan rates. Same about collateral, loan is may be 60%.
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Such drawdown is nothing for asset appreciating much faster than anything else.That's never happened before
FUD city, lol (MSCI is an index for foreign investors, btw)
Bitcoin maxis discovering rolling debt financing reminds me of gamblers discovering the Martingale strategy. Both sound great on paper, both will blow up spectacularly in practice.
You're so close to understanding why Bitcoin cannot actually be lended, therefore cannot function as a currency, and why Strategy's endgame of being a "Bitcoin bank" is utter foolishness (hazard a guess as to why no one has invented a "gold bank" where you can borrow 10 oz. of gold and a year later repay with 11 oz. of gold). You understand how banks create money out of nothing, and are able to critique this system, but you haven't yet been able to wrap your head around the fact that this aspect of fiat also carries with it great advantages that Bitcoin (or gold) cannot replicate. There is a reason that no country in the world still uses a gold standard, and it's the same reason why no country in the world will ever adopt a Bitcoin standard. You're still operating under the false assumption that money = value. Once you internalize the idea that money is an entirely fictional social construct, whose only value is to facilitate economic exchange and allow for the accumulation and investment of capital (that is, real wealth, i.e. the sum of natural resources, human labor and applied knowledge) then you will be able to appreciate the virtues of fiat instead of focusing entirely on its flaws.
We do not need countries to adopt Bitcoin standard, I think. Concept of a "country" is to collapse soon, actually. It is hard to tell what it will be at the end, most likely mega corporate zones of influence in one part of the world and socialist block in another, but countries and nations is a diminishing concept. All that matters is that "people" adopt bitcoin. Governments and their fiats will get trashed and wiped out (again), people is what remains. Gold is what remains too.
Bitcoin absolutely can be lended, just like a coat can be lended. Yes, you can not collect true interest on bitcoin as it is a finite resource unlike fiat, this is the beauty of it, being free from usury, in its pure form. "Accumulation and investment" of capital is nothing but usurous, demonic, thieving, unjust scam. No one should even try replicating this truly demonic system with bitcoin (this system should be destroyed, actually, including every rock of its foundation), the beauty of bitcoin is that it is not lendable with interest within its own system.
Interest (usury) is the basis of everything that is wrong with the modern world, starting with borrowing-based financialized economy, to massive inequality, near total debt slavery, to currency and savings devaluation. Interest is the foundation of unsustainable exponential growth scam cardhouse. The fake "growth" these ghouls talk about every year. Usury requires "growth" (currency debasement) to exist, to keep feeding their profits, this is how they get rich.
Bitcoin absolutely can be lended, just like a coat can be lended. Yes, you can not collect true interest on bitcoin as it is a finite resource unlike fiat, this is the beauty of it, being free from usury, in its pure form. "Accumulation and investment" of capital is nothing but usurous, demonic, thieving, unjust scam. No one should even try replicating this truly demonic system with bitcoin (this system should be destroyed, actually, including every rock of its foundation), the beauty of bitcoin is that it is not lendable with interest within its own system.
Interest (usury) is the basis of everything that is wrong with the modern world, starting with borrowing-based financialized economy, to massive inequality, near total debt slavery, to currency and savings devaluation. Interest is the foundation of unsustainable exponential growth scam cardhouse. The fake "growth" these ghouls talk about every year. Usury requires "growth" (currency debasement) to exist, to keep feeding their profits, this is how they get rich.
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More like "stolen wealth", "exploited labor", "useless 'knowledge' which only complicates lives and dehumanizes society, destroys nature, along with their bizarre cult of science and technology worship", plus finite natural resources and finite ecological capacity, combined with finite earth surface. Finite human lifetime. Finite civilizational lifetime. Everything is finite in the tangible world...except fiat and the greed of usurers who came up with it. Once you understand the nature of this scam you no longer can keep "internalizing" it.
Fiat financial system had only existed for a very short time, about a hundred years, a tiny blip on the timeline of human history. It is a failed system that had been riddled with masive inflation and debt. A short, failed experiment.
Prohibitions against usury in religious texts I believe had a purpose of being a safeguard aganst runaway inflation, fiat, building financial and technocratic babylons and destruction of earth by rapid industrialization and creation of greed dominated society.
Prohibitions against usury in religious texts I believe had a purpose of being a safeguard aganst runaway inflation, fiat, building financial and technocratic babylons and destruction of earth by rapid industrialization and creation of greed dominated society.
If a business makes money, it should be able to pay interest on a loan from a fully collateralized bank. Fractional reserve banking (counterfeiting) is only necessary for unprofitable business. Why do you think the S&P 500 growth matches the growth of the Federal Reserve balance sheet exactly? 493 companies out of 500 are simply receiving excess “liquidity” from the debauchment of fiat money, instead of creating wealth.
What rate of theft is necessary for civilization? 2%, 10%, 50%?
Gold is saleable across time, but not across space, unless the gold becomes centralized. When things are centralized, they are more easily corrupted. Centralized gold —-> Fractional reserve banking ——> central banking ——> executive order 6102 —-> fiat slavery. Bitcoin does not require or even trend to centralization, it is to decentralization.
Yes, exactly, decentralized is the key (and trustless and finite).
All the lending in the ever expanding fiat system only creates garbage businesses and fake "needs". Bunch of ridiculous and destructive toys for adults, bunch of junk that ends up in landfills shortly, every one needing a dog walker, a personal trainer and a financial advisor, all the "labubu" type businesses and stuff. Now it's AI that everyone suddenly "needs", financed by their fake money of course. People who used to live in gold based world and outside consumerust economy were happier and saner and amazingly did not need even 1/100 of modern useless wants. The governments were able to mess with gold coins, though, need decentralized means of exchange
All the lending in the ever expanding fiat system only creates garbage businesses and fake "needs". Bunch of ridiculous and destructive toys for adults, bunch of junk that ends up in landfills shortly, every one needing a dog walker, a personal trainer and a financial advisor, all the "labubu" type businesses and stuff. Now it's AI that everyone suddenly "needs", financed by their fake money of course. People who used to live in gold based world and outside consumerust economy were happier and saner and amazingly did not need even 1/100 of modern useless wants. The governments were able to mess with gold coins, though, need decentralized means of exchange
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It's remarkable the degree to which Bitcoin maxis come across like early twentieth century communists: zealous, utopian, utterly convinced of their righteousness of their beliefs, but painfully delusional, out of touch with reality, and ultimately advocating a totally impractical ideology that, if implemented, would kill and impoverish millions by destroying the economy. In both the communist and the Bitcoin maxi, the arguments are cloaked in economic jargon, but the belief system is inherently religious in nature, if not quasi-mystical even. Just as communism was sold as a means of curing essentially everything wrong with the world and ushering in a utopian age of peace, equality and abundance, Bitcoin is promised as a civilizational cure-all that will rid mankind of all the evils that currently plague us, which can apparently - how convenient - all be traced to the use of fiat currency and fractional reserve banking.
But all the utopian economic rhetoric and quasi-religious sentiments cannot dispel the fact that Bitcoin is simply a decentralized Ponzi scheme with no inherent value whatsoever. When this truth finally asserts itself, as it inevitably will in time, you all will be forced to confront the same painful fact that the communists did when the Soviet Union fell, and will come to regard Bitcoin the same way they looked back on their theoretically beautiful but practically doomed ideology: as the god that failed.
But all the utopian economic rhetoric and quasi-religious sentiments cannot dispel the fact that Bitcoin is simply a decentralized Ponzi scheme with no inherent value whatsoever. When this truth finally asserts itself, as it inevitably will in time, you all will be forced to confront the same painful fact that the communists did when the Soviet Union fell, and will come to regard Bitcoin the same way they looked back on their theoretically beautiful but practically doomed ideology: as the god that failed.
Utopian, evil and unjust is the fake scam of forever "growing" consumerist economy of debt slaves with clown fiat money, fiat is doomed, its not if but when now. Probably will take down their entire fake and super evil system based on it. Devaluing now.
As to religious view of bitcoin, it says plain in the Bible that usury is bad. I wonder why anyone would dispute that.
Lots of fans of Rothchilds on here, believing in the gubimint and in the system, only their gubimint are more like clowns from Israel. Will sell them 100%.
As to religious view of bitcoin, it says plain in the Bible that usury is bad. I wonder why anyone would dispute that.
Lots of fans of Rothchilds on here, believing in the gubimint and in the system, only their gubimint are more like clowns from Israel. Will sell them 100%.
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In fact I'm seeing a pattern..."support Israel", in dollar, greed and Rothchilds we trust (and you must too), bitcoin bad, all come in the same package. Truth is they feel dollar is threatened and devaluing with 40T debt, no way out, so come to dig at bitcoin. They rant as anticommunists but what really bothers them is plain envy of early btc adopters who made a killing 
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