Caer on Nostr: Ok if everyone is getting their MSTR/mNav takes in, I way as well do mine: As I see ...
Ok if everyone is getting their MSTR/mNav takes in, I way as well do mine:
As I see it, Mstr shares are units of a de facto bitcoin-backed currency offered and operated by MicroStrategy, a 'new-paradigm' financial services firm emerging from a traditional tech company like a butterfly from a chrisalys. I use "new-paradigm" to distinguish it from terms like "neo-bank". It isn't one of those, it's a whole new thing.
This mstr 'currency' isn't a general purpose currency, we've already got plenty of those and don't need another. Instead, it's primary use-case is to transfer financial value from legacy assets to bitcoin. It's the medium through which MicroStrategy (the company) facilitates the value transfer from the legacy financial system. The transfer is achieved both through products (convertible debt) and through intermediated bitcoin exposure (shares "owning" a portion of the bitcoin treasury).
It's "for" financial services firms, but also for anyone that wants to transfer their own individual legacy financial value themselves without having to bear the costs and burdens of self-sovereignty.
Mstr is both a stepping stone to hyperbitcoinization *and* a bitcoin "layer 2":
It functions well as a stepping stone to hyperbitcoinization because it enables the legacy-to-bitcoin value transfer *without requiring any material changes to the rules of the financial system*. This is exemplified by it's convertible debt product, which gives a degree of bitcoin exposure to entities that aren't allowed to have direct exposure under the current rules.
In the long run the rules may change and these entities might hold bitcoin directly, removing the need for the mstr conduit, but that's potentially decades away. In the meantime, mstr is the gradual and peaceful transition.
Index inclusion is a 2nd example of how mstr enables legacy-to-bitcoin value transfer: people and entities will continue doing what they're doing now (investing in the S&P500), but mstr's presence in the indices will transfer the value all by itself.
Mstr also functions as a quasi "Layer 2" to the bitcoin network by having shares act as a ledger of who owns what proportion of the treasury stack. Think of it like a lightning channel or e-cash mint: by transferring ownership of shares between participants you are "transacting ownership of bitcoin (the mstr treasury)" without any on-chain actions taking place.
If a mechanism can be found/created to allow for direct trading of fractionalised mstr shares, then it really *would* be a currency in all but it's legal treatment.
In conclusion: think of mstr as a currency tailor made for transmuting legacy financial value into bitcoin financial value. The conditions that position it for success may one day change, but for the time being it seems like a brilliant loophole and peaceful middle road to hyperbitcoinization.
As I see it, Mstr shares are units of a de facto bitcoin-backed currency offered and operated by MicroStrategy, a 'new-paradigm' financial services firm emerging from a traditional tech company like a butterfly from a chrisalys. I use "new-paradigm" to distinguish it from terms like "neo-bank". It isn't one of those, it's a whole new thing.
This mstr 'currency' isn't a general purpose currency, we've already got plenty of those and don't need another. Instead, it's primary use-case is to transfer financial value from legacy assets to bitcoin. It's the medium through which MicroStrategy (the company) facilitates the value transfer from the legacy financial system. The transfer is achieved both through products (convertible debt) and through intermediated bitcoin exposure (shares "owning" a portion of the bitcoin treasury).
It's "for" financial services firms, but also for anyone that wants to transfer their own individual legacy financial value themselves without having to bear the costs and burdens of self-sovereignty.
Mstr is both a stepping stone to hyperbitcoinization *and* a bitcoin "layer 2":
It functions well as a stepping stone to hyperbitcoinization because it enables the legacy-to-bitcoin value transfer *without requiring any material changes to the rules of the financial system*. This is exemplified by it's convertible debt product, which gives a degree of bitcoin exposure to entities that aren't allowed to have direct exposure under the current rules.
In the long run the rules may change and these entities might hold bitcoin directly, removing the need for the mstr conduit, but that's potentially decades away. In the meantime, mstr is the gradual and peaceful transition.
Index inclusion is a 2nd example of how mstr enables legacy-to-bitcoin value transfer: people and entities will continue doing what they're doing now (investing in the S&P500), but mstr's presence in the indices will transfer the value all by itself.
Mstr also functions as a quasi "Layer 2" to the bitcoin network by having shares act as a ledger of who owns what proportion of the treasury stack. Think of it like a lightning channel or e-cash mint: by transferring ownership of shares between participants you are "transacting ownership of bitcoin (the mstr treasury)" without any on-chain actions taking place.
If a mechanism can be found/created to allow for direct trading of fractionalised mstr shares, then it really *would* be a currency in all but it's legal treatment.
In conclusion: think of mstr as a currency tailor made for transmuting legacy financial value into bitcoin financial value. The conditions that position it for success may one day change, but for the time being it seems like a brilliant loophole and peaceful middle road to hyperbitcoinization.