TD₿: Speculative Attack by Pierre Rochard
TL;DR Companies are increasingly issuing cheap debt to buy bitcoin.
Hey Bitcoiners,
This morning, one of the largest Bitcoin mining firms, Marathon Digital, announced they intend to raise $500 million through the issuance of senior convertible notes in order to “acquire more bitcoin and bitcoin mining machines.”
In economics, this is known as a speculative attack. It occurs when investors start to precipitously sell an untrustworthy asset (USD) followed by the corresponding acquisition of some valuable asset (BTC).
This dynamic between bitcoin and the dollar was foreseen over 7 years ago by the prescient Pierre Rochard in his post “Speculative Attack” (07/04/2014).
This is only the beginning as more and more investors and companies wake up to the fact that they can issue cheap debt, raise devaluing dollars, and sell them for the hardest money in the world.
Tick tock next block,
Cory Klippsten
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Quote of the Day
“Bitcoin endures because the engineers that build it expect the unexpected. Money is a dangerous game, and any weaknesses, no matter how small, will be exploited.” - Neil Woodfine, Head of Marketing at Unchained Capital
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