From Matt Levine’s column last week: … And it’s now at about $42 per share, up about 50% since the column was written. Bitcoin’s price is up slightly.
From Matt Levine’s column last week:
On Wednesday, Cantor Equity Partners announced a merger between (1) its pot of cash, (2) Tether’s pot of Bitcoins, (3) Bitfinex’s pot of Bitcoins and (4) SoftBank’s pot of Bitcoins. Tether, Bitfinex and Softbank will contribute a total of about 36,210 Bitcoin, worth about $3.4 billion, and take back stakes in the combined company […]
At noon today, Cantor Equity Partners was trading at about $28.34 per share, almost triple its pre-deal price. That implies a value for Twenty One’s 36,210 Bitcoins of about $9.8 billion,[4] or about $270,000 per Bitcoin. Again, Bitcoin is trading at around $93,000 today on crypto exchanges. If you can sell Bitcoin for $270,000 on the Nasdaq, you’d be crazy to sell it for $93,000 on a crypto exchange.
…
A lot of people in traditional finance, certainly including me, like to make fun of crypto. There is a lot to make fun of. But who is traditional finance to talk? The uncomfortable fact is that the stock market will pay much more for crypto than the crypto market will: Packaging Bitcoin into a stock makes it much more valuable. The crypto enthusiasts on the stock market are more enthusiastic about crypto than the crypto enthusiasts in crypto. It looks a little bit like crypto keeps playing a prank on the stock market, and the stock market keeps falling for it.
And it’s now at about $42 per share, up about 50% since the column was written. Bitcoin’s price is up slightly.
Archive https://archive.is/1zDdZ I don't understand any of this. Bitcoin has lost value since February / January high of near $150k CAD, and is currently $133k CAD per coin. But this means the...
The basic situation is that US public equity markets will pay about $2 for $1 worth of Bitcoin
I don't understand any of this. Bitcoin has lost value since February / January high of near $150k CAD, and is currently $133k CAD per coin. But this means the derivative product is valuing it more so than just straight up buying a few Satoshi ? It'd be like if I hold Gold stock for $10k which equates to less gold than if I just bought $10k worth of gold bars?
“I would like to put a million dollars in a bag and hand it to the president so he will talk to me for 10 minutes,” it would not be immediately obvious how you might go about doing that.
Oh, that makes a lot of sense. We have a perpetual hot air generator and now the mechanism to turn hot air into real gold.
Hmm, how I understood both, is that the latter explains the first. Who all is buying Bitcoin stock and what's driving the market insanity? There are people buying Bitcoins, and Trumpcoins for...
Hmm, how I understood both, is that the latter explains the first. Who all is buying Bitcoin stock and what's driving the market insanity? There are people buying Bitcoins, and Trumpcoins for direct access, and that demand drives the overall market atmosphere for people to buy "anything crypto related". Even people who dislike Trump and dislike crypto can see the trend going up (for now). I'm imagining a bunch of boomers looking at their trading app not knowing how to actually buy bitcoins, and then just throwing money at stocks that has crypto in the name.
It was a self-perpetuating cycle, but as such, lacked any meaningful fundamentals. The trade had never materialised, and in turn the company was just trading itself against the debt that it had bought. [...] During the ‘bubble’ around 200 ‘bubble’ companies had been created, and whilst many of them were scams, not all were nefarious. The Royal Exchange and London Assurance survive to this very day. (Historic UK, South Sea Bubble)
Replace "the trade had never materialized" with the money making future tech that crypto enables never materialized, and the craze for trading $2 for $1 of actual coin makes sense, at least, to me. People might be thinking bitcoins are silly but buying stock in companies that claim to be using bitcoins to make the Next Big Thing™ is real. It isn't just South Seas Company/Bitcoin that got money, there was a whole host of other "trading companies/meme coins" that bubbled up when the King / Trump endorses it. Even Issac Newton "reportedly lost as much as £40 million of today’s money in the scheme."
What I meant is that they are two different coins and buying Bitcoin doesn’t get you access to Trump. So at least some of the reasons people might be buying them seem different? I guess what they...
What I meant is that they are two different coins and buying Bitcoin doesn’t get you access to Trump. So at least some of the reasons people might be buying them seem different?
I guess what they might have in common is that for meme coins and meme stocks, the underlying asset isn’t really the point. It’s just people playing the pump and dump game.
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I read a book about the South Sea bubble recently, and one difference back then is that the government was in on it. Most members of parliament were bribed, in effect. England had borrowed money in miscellaneous ways to fund wars and the South Sea company was effectively a very bad way of consolidating government debt while enriching everyone in on the scheme.
After the South Sea bubble, the market for government debt was rationalized with “consuls” (consolidated bonds) and the British government had a financial advantage due to its ability to borrow money from investors to fund wars.
From Matt Levine’s column last week:
…
And it’s now at about $42 per share, up about 50% since the column was written. Bitcoin’s price is up slightly.
Archive https://archive.is/1zDdZ
I don't understand any of this. Bitcoin has lost value since February / January high of near $150k CAD, and is currently $133k CAD per coin. But this means the derivative product is valuing it more so than just straight up buying a few Satoshi ? It'd be like if I hold Gold stock for $10k which equates to less gold than if I just bought $10k worth of gold bars?
Oh, that makes a lot of sense. We have a perpetual hot air generator and now the mechanism to turn hot air into real gold.
Yeah, those two quotes are on unrelated stories, though.
Hmm, how I understood both, is that the latter explains the first. Who all is buying Bitcoin stock and what's driving the market insanity? There are people buying Bitcoins, and Trumpcoins for direct access, and that demand drives the overall market atmosphere for people to buy "anything crypto related". Even people who dislike Trump and dislike crypto can see the trend going up (for now). I'm imagining a bunch of boomers looking at their trading app not knowing how to actually buy bitcoins, and then just throwing money at stocks that has crypto in the name.
Replace "the trade had never materialized" with the money making future tech that crypto enables never materialized, and the craze for trading $2 for $1 of actual coin makes sense, at least, to me. People might be thinking bitcoins are silly but buying stock in companies that claim to be using bitcoins to make the Next Big Thing™ is real. It isn't just South Seas Company/Bitcoin that got money, there was a whole host of other "trading companies/meme coins" that bubbled up when the King / Trump endorses it. Even Issac Newton "reportedly lost as much as £40 million of today’s money in the scheme."
What I meant is that they are two different coins and buying Bitcoin doesn’t get you access to Trump. So at least some of the reasons people might be buying them seem different?
I guess what they might have in common is that for meme coins and meme stocks, the underlying asset isn’t really the point. It’s just people playing the pump and dump game.
—
I read a book about the South Sea bubble recently, and one difference back then is that the government was in on it. Most members of parliament were bribed, in effect. England had borrowed money in miscellaneous ways to fund wars and the South Sea company was effectively a very bad way of consolidating government debt while enriching everyone in on the scheme.
After the South Sea bubble, the market for government debt was rationalized with “consuls” (consolidated bonds) and the British government had a financial advantage due to its ability to borrow money from investors to fund wars.