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Bitcoin for Institutions
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Insights from "Bitcoin for Institutions" by Brian Hirschfield. Learn how institutional investors can approach Bitcoin. Buy the book: https://zeuspay.com/btc-for-institutions Free course: https://bfi-liart.vercel.app
Financial crises happen - even trustworthy borrowers can find themselves unable to pay A hallmark of a society built on inflationary money is that debt is ubiquitous. It makes sense to borrow money now, use it for something valuable, and pay back your loan in the future with debased money. In a world without bitcoin, this is how people win in the fiat game - you want to be a borrower. The Biggest Borrower: The US government has issued close to $40 trillion in debt - far in excess of GDP. There is zero likelihood of ever paying it back without significant dollar devaluation. If we include unfunded liabilities, we're looking at over $200 trillion. Governments raise money by selling securities ... From: Structured Credit
The Strategy 1. Assume a forward-looking return of bitcoin as an actuarial assumption (30% or 40% a year is reasonable based on historical data). 2. Establish a clearly defined program that actually sells a certain amount of bitcoin regularly. 3. Demonstrate to auditors and regulators the ability to execute this strategy. 4. Classify a percentage of treasury gains as operating income instead of capital gains. To illustrate how a company could do this, consider a large bitcoin mining company that holds a BTC treasury from their mining operations: From: Bitcoin for Institutions