Re:MicroStrategy's Bitcoin Debt Bet
by vasilipupkin on Monday December 14, 2020 @12:06AM
(#25413782)
right, but where does that interest come from? so SPY dividend comes from the stocks making money and earning cashflows. Bitcoin lending interest comes from people borrowing it to trade, a somewhat circular arrangement.
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Re:MicroStrategy's Bitcoin Debt Bet
by trident1000 on Monday December 14, 2020 @12:23AM
(#25413863)
Who cares what people who borrow do with it. 5% or whatever is all I care about as an investor + getting my money back.
Re:MicroStrategy's Bitcoin Debt Bet
by vasilipupkin on Monday December 14, 2020 @12:44AM
(#25413969)
Of course, just pointing out that this dividend doesn’t give bitcoin value, it exists when bitcoin has value. With stocks, the expected cash dividend is what gives them ultimate value.
Re:MicroStrategy's Bitcoin Debt Bet
by trident1000 on Monday December 14, 2020 @09:39AM
(#25418033)
Youre pointing out at this stage that btc is a non cash flow asset...yes most people know that. Same with oil and commodities and gold.
Re:MicroStrategy's Bitcoin Debt Bet
by mikhailfranco on Monday December 14, 2020 @02:11AM
(#25414342)
The 'interest' comes from lending your BTC to short-sellers.
As always, where there's a return, there's also a risk.