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@ William K⚡Santiago🔑☢️
2024-12-11 08:17:42
Traditional finance gets worked up over companies issuing debt to invest in Bitcoin, as the value of Bitcoin surges faster than the cost of the debt. However, this isn't a new phenomenon. Legacy finance has been engaging in a similar strategy with real estate and stocks for decades. By artificially keeping interest rates on real estate and corporate debt below the rate of inflation, these financial institutions can absorb housing markets and use the resulting wealth to buy back stocks, artificially pumping up their value and allowing the debt to gradually devalue over time.
This strategy is only accessible to financially privileged elites who can take advantage of low interest rates and leverage to amass wealth. The same mechanisms that allow these individuals to amass wealth through real estate and stocks are now being employed to invest in Bitcoin, but with a perceived higher risk. It's a case of the same old game, but with a new asset class, and one that only the well-heeled are able to participate in.
But what's more, Bitcoin is the only digital asset that has broken through the barriers of exclusivity that have long surrounded traditional finance. Unlike other digital assets like stocks or private equity, Bitcoin is not just a playground for the 1%, but is now accessible to anyone with an internet connection. This democratization of access has created a level playing field, where even the most marginalized individuals can participate in the global economy, albeit on their own terms.