Bitcoin credit rerates global cost of capital
The guest argued that transparent, 24/7 priceable Bitcoin-backed credit instruments will rerate the cost of capital for the entire credit market by establishing a new hurdle rate.
The argument
The guest asserted that investors will increasingly reject lower-yielding traditional debt when highly transparent, liquid, and asset-backed digital credit options are available. This shift is expected to force traditional corporate issuers to compete against these high-yielding instruments over the next five to ten years.
The thesis, stress-tested
✓ What validates it
- ✓Traditional mid-market companies reporting higher borrowing costs due to competition with digital credit yields
- ✓Increased daily trading volume of structured digital credit products
▸ Risks discussed
- ▸Relative illiquidity of some structured digital credit instruments
- ▸Steep learning curve for traditional credit investors
Hear it yourself
"It was, yeah, it was probably maybe not even a month old. And so at that time, I think you had Strive had something like 7 and a half thousand Bitcoin, and I'm pretty sure Sata was trading way below a $100. That's correct. And now we're sat here, you know, six months later. You've got I think you've stacked nearly 10,000 since then, and Sata's at par and crushing it, man. You've done good. Yeah. Yeah. Yeah. We've been we've been working really hard. And, you know, there there was a lot of it doesn't just happen. Like, there is so much work that happens behind the scenes to get there."
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