brock on Nostr: I think the implication of Saylor being right about a 5% yield means if bitcoin is ...

I think the implication of Saylor being right about a 5% yield means if bitcoin is appreciating 10% annually in fiat terms, the investments made by the banks backed by the custodied bitcoin would need to return 10.5% (risk free). If bitcoin is appreciating 50% annually then 52.5% risk-free fiat returns would be required.

If those conditions are met, both saylor (npub15dq…lm5m) and saifedean (npub1gdu…6nak) are right, right?

I think Saife is skeptical about the investment opportunities that would generate such a yield in the short to mid term. Saylor’s position seems more reasonable long(er) term once bitcoin is more fully monetized.

(Check my math…writing this on a long walk.)