nEvEr seLL yOUr bITcOin
Ah the day has finally arrived! A Bit sooner than I was expecting to be honest. Saylor finally capitulating on this silly idea that you NEVER SELL YOUR BITCOIN. It's a good day to be honest. A reasonable day. Not such a great day for mythical cyber hornets that don't exist.
https://x.com/TreeNewsFeed/status/2051793792437506340
Yield finally catching up to MSTR.
Just a quick reminder that people love yield-bearing-assets, but yield can't mathematically exist when dealing with a hard asset like Bitcoin. We all know the saying: there will only ever be 21M BTC. Offering a yield on BTC with BTC is impossible because then there would have to be more than 21M to pay the interest rate. The only way to do it is the wrap up the asset in a fiat asset that can be printed out of thin air. Technically you could do it with something like gold as well because you can always mine more gold (or even create it in a lab), but seeing as zero economies on earth actually operate from a gold standard it hardly seems worth mentioning.
https://x.com/grok/status/2051797122643624303
Wait... what does he even mean by "inoculate"?
Saylor is basically saying MSTR needs to sell a little now, and don't worry it's only a tiny bit, but then uses the word inoculate to imply that later he will almost certainly be selling a lot more. But don't worry the market has been "vaccinated" against this selling pressure. lol. Interesting choice of words to be sure.
To be fair what he is saying makes all the sense in the world and I don't even disagree with this decision. It's nice to see all the unmitigated delusional lying regarding the "never sell your bitcoin" stance start to melt away. The entire point of storing wealth is to eventually use that wealth at a later date for whatever reason (investments, bills, etc). It's actually much better this way: selling a tiny bit of BTC; compared to the alternative... which was potentially putting all the Bitcoin in a collateralized position and borrowing against it (which puts all of the collateral at risk with a centralized entity/bank).
The math easily works out here so far in that you'd only have to sell a teeny tiny fraction of BTC to offer the necessary yield on these MSTR derivatives. The idea is that exponentially more funny money is pouring into these derivatives than hard money being sold to... what's the word... "service the loan". Of course we all know how the theory has a nasty way of getting slapped by reality at one point or another. Bitcoin has a way of giving everyone a false sense of security, everyone overextends, and then a ton of people go bankrupt every 4 years during the bear market.
I have personally never thought to put any money into MSTR or any of these ridiculous derivatives. If it were up to me retail would be banned entirely from buying them unless it was the only way to get institutional money (like retirement accounts) into the asset class. This, of course, is no longer true with all the ETF products running around. Let the corporations play with these corporate junk bonds. Everyone should understand by now that being a greedy goblin and trying to outperform BTC in the long term tends to get punished for it.
https://x.com/btc_overflow/status/2051986889821819309
Apparently this has already happened?
According to this random guy on the internets MSTR has already tax loss harvested their bags in 2022. That's where you sell the BTC at a loss and then buy it back as soon as legally possible in order to create a tax event write-off in your favor. Of course comparing this to selling BTC to fund yield is actually kind of ridiculous... as one strategy is a guaranteed win while the other is attempting to offer yield on a hard asset that can't be printed out of thin air. Just because they are both technically "selling" doesn't make them comparable in the least bit, but people are stupid so they only tunnel-vision focus on the "never sell your Bitcoin" mantra.
Conclusion
This "news" has had zero affect on the price. The market doesn't care. Only the plebs who were lied to care. There's a simple solution to that problem. Stop believing the obvious lies that the people in charge keep telling you. Good day for a reality check.