8R0ck3feller @8r0ck3feller - 14d
Provocative idea (not sure I believe it myself yet TBH) but a MSTR psyop would be meant to destroy the bitcoin community from within. All my favorite Bitcoin podcasters are absolutely enamored - both intellectually and personally - with MSTR and Saylor. Biggest attack vector to mass bitcoin adoption that I can see this cycle would be if MSTR turns out to be a psyop. Be careful out there… nostr:note1aat8kx33j5tuhhl95ymuhsuf8pkm0dg30nruunc34v5c7gr0nfhqhx4z0z
Tracy @Tracy - 14d
Its not a psyop nor really an attack vector. Saylor is genuine in his goals. But MSTR could be the trigger that breaks this bull market like FTX or the GBTC arbitrage was for the previous. We all know what leverage can do and regardless of whether MSTR is using traditional leverage or leveraging its own shareholders, this could break in spectacular and unexpected ways. Proceed with caution.
Fair enough, I'm definitely not trying to fud but I do see patterns between cycles and I'm very much on the lookout for this cycle's black swan. And I'll admit ignorance on the tools that Taylor is using - corporate finance is way behind me. Each cycle breaks in its own unique way, and I may be barking up the wrong tree. Regardless I'm keeping a watchful eye on MSTR as I think everyone should be doing.
Which means their custodian doesn’t have to hold the bitcoin. Duh.
I have, on a cost basis, 5% of my net worth in MSTR. If you have more, good for you. But you’re trusting, not verifying. Your MSTR position could get rekt. Proof of reserves helps to derisk rekt risk. Unclear why Saylor doesn’t do it…
Why no proof of reserves? If El Salvador can do it…
Exactly … which means they’re an attack vector to bitcoin. Dude, I support EVERYTHING Saylor says, his strategy is 100% on point…it is a speculative attack on fiat financial markets and I LOVE to see it. I am simply saying that because he “never” intends to sell the vast majority of the coins he is stacking, that is literally the perfect foundation for his custodians to FRACTIONAL RESERVE the mstr bitcoins. That’s not a negotiable like “nah, they won’t do that…” that’s a 100% the custodians are absolutely wanting to do that. Show me the incentive and I’ll tell you the outcome. COIN is fractional reserve-ing MSTR’s Bitcoin. That’s putting downward pressure on spot Bitcoin’s price. The larger the entities are that get into the game, the easier it will be to fractional reserve the Bitcoin. Eventually this comes home to roost. 2 years from now? 200 years from now? Fractional reserving won’t work with a 100% scarce asset. If Saylor is a “true bitcoiner” he should be providing proof of reserves on-chain.
