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WATCH, LIKE, SHARE HERE TOO
-It's an open secret that Bitcoin is terrible for privacy.
-Satoshi Nakamoto knew this from the start, and even hinted at a potential solution.
-But Satoshi couldn't figure out how to make it work.
-So Zcash invented new math to solve the problem Satoshi left behind.
-Privacy is necessary for freedom and Zcash is more fit for purpose than Bitcoin
Zcash Media 🛡️@zcashmedia
NEW VIDEO OUT WATCH, LIKE, SHARE, SUBSCRIBE TO GET THE YT ALGO TO PUSH IT LINK IN NEXT POST
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MicroStrategy 101
@MicroStrategy lets people to invest in Bitcoin via familiar financial tools such as stocks and bonds. This makes investing in Bitcoin accessible to anyone unable to buy Bitcoin directly due to legal or practical reasons.
What MicroStrategy Offers
Stock
MicroStrategy sells new $MSTR shares and buys Bitcoin.
Convertible Bonds
MicroStrategy sells convertible bonds and buys Bitcoin.
Why It’s Working
By issuing stock or convertible bonds and using the proceeds to buy Bitcoin, MicroStrategy increases the Bitcoin per share for $MSTR shareholders. Shareholders usually dislike the creation of new shares because it dilutes their ownership, but in this case they support it because their Bitcoin per share grows.
Measuring Success
MicroStrategy has created a financial metric called Bitcoin Yield, that measures how the Bitcoin per share of $MSTR changes over time. Investors have adopted this metric as the primary way of measuring how successful MicroStrategy is at executing its strategy.
Market Opportunity
Demand for Bitcoin is growing as investors increasingly view it as a viable investment. MicroStrategy estimates there are $450 trillion in investable assets worldwide. Bitcoin’s market cap is $1.8 trillion, which is about 0.4% of the total. MicroStrategy believes this could grow to 7% in the next 20 years, a 17.5x increase. MicroStrategy is capitalizing on this opportunity by facilitating the transfer of capital from fiat systems to the Bitcoin network via their stock and convertible bond offerings.
Risks
All investments involve risk. Here are some of the noteworthy risks for MicroStrategy investors:
Regulatory
Regulators could deem MicroStrategy an investment company instead of an operating company, which could negatively impact the business. Changing laws around Bitcoin could adversely impact the company.
Premium Risk
MicroStrategy is currently able to sell stock and bonds at a 3.3x premium over the value of their underlying Bitcoin holdings. By using the proceeds from this sale to buy Bitcoin, they can deliver a positive Bitcoin Yield. If demand for MSTR stock and bonds decreases, the premium could decrease and impact the Bitcoin Yield.
Bitcoin Price Violatility
MicroStrategy’s performance depends on Bitcoin’s price, which can be very volatile. It’s unclear how demand for $MSTR will change when Bitcoin’s price is going down.
$MSTR Bros
MicroStrategy has a cult-like online following. Self-aggrandizing social media influencers are flaunting sports-car purchases, posting their options portfolios, bragging about their gains, and encouraging people to take risky bets on $MSTR options. They use tortured analogies to describe MicroStrategy to unsophisticated investors. They regularly downplay the risks of $MSTR and attack those that caution prudence. Following their advice is going to get people wrecked. Regulators will take notice. The fallout could harm MicroStrategy’s reputation and potentially lead to legal consequences for these promoters. To his credit, MicroStrategy CEO Michael @Saylor doesn’t engage with these individuals.
Conclusion
I support MicroStrategy’s efforts to advance Bitcoin adoption. Michael Saylor is a survivor, an innovator, and a powerful advocate for Bitcoin. I think anyone with significant Bitcoin holdings should consider owning some $MSTR to support his mission.
If you like this post, please share and follow me on X.
- @WayneVaughan.
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