We Study Billionaires - The Investor’s Podcast Network BTC204: Stablecoins vs Bitcoin w/ Allen Farrington (Bitcoin Podcast)
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Oct 16, 2024 Allen Farrington, author of 'Bitcoin Is Venice' and founder of Axiom BTC Capital, dives deep into the contentious debate between Saifedean and Saylor about borrowing against Bitcoin. He discusses the risks of stablecoins compared to traditional bank accounts and their role in expanding fiat currencies. Allen highlights critical technical risks in crypto and examines institutional involvement, including BNY Mellon's custody services. Lastly, he touches on free speech technologies like Nostr, and their implications for Bitcoin's future.
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Risk-Free Yield Illusion
- Risk-free yield is an illusion in a fiat system propped up by money printing.
- Removing this artificial prop reveals the inherent risk in any investment.
Bitcoin Borrowing Strategy
- Borrow against Bitcoin peer-to-peer and overcollateralize to reduce risk.
- Keep positions small, considering the Kelly criterion and Bitcoin's potential returns.
Bitcoin as a Corporate Finance Tool
- Borrowing against Bitcoin for investment is just a complex way to leverage long Bitcoin.
- It becomes a useful corporate finance tool for businesses focused on Bitcoin accumulation.
