disruptvestor on Nostr: The unbacked Fiat standard incentivize the use of debt. Debt-laden capital structures ...
The unbacked Fiat standard incentivize the use of debt.
Debt-laden capital structures drive-up market caps by squeezing costs at scale and acquiring smaller players.
Large companies can access more debt to fuel their growth. With debt large players consolidate industries, stifles innovation, buy-off competition and stall/reduce product quality.
Alternatively, on a #Bitcoin standard the minimum hurdle rates increase, the cost of capital goes-up and the unconstrained use of debt in capital structures get capped.
The Bitcoin standard incentivizes innovation over financial engineering. And innovation is what creates value.
Debt-laden capital structures drive-up market caps by squeezing costs at scale and acquiring smaller players.
Large companies can access more debt to fuel their growth. With debt large players consolidate industries, stifles innovation, buy-off competition and stall/reduce product quality.
Alternatively, on a #Bitcoin standard the minimum hurdle rates increase, the cost of capital goes-up and the unconstrained use of debt in capital structures get capped.
The Bitcoin standard incentivizes innovation over financial engineering. And innovation is what creates value.