UDS Fiat Standard risk-off vs. Bitcoin Standard risk-off showdow
The U.S. national debt is 35T, Gold is the highest-valued asset class at 18T (while it should be at 129T), and Bitcoin is now at $1.8 T. Meanwhile, the annual U.S. military budget is 841B, supporting the world's current economies.
The U.S. annual interest payment on its national debt is over 1T. The U.S. is entering the zone where they must borrow to make the interest payments. TradiFi needs to kill Bitcoin, but they can't because over 35% of the world's plebs are in support of a Bitcoin Standard paradigm shift. Now.
TradiFi needs a big war right now. It is their last resort. China keeps its eyes on the final prize… Taiwan.
-------------
The likelihood of its inclusion is relatively high, given that MicroStrategy (MSTR) meets all the primary criteria for inclusion in the S&P 500, including market capitalization, liquidity, public float, and profitability.
However, the final decision rests with the S&P Index Committee, which considers additional factors such as:
1 - Market Conditions: Unfavorable market conditions or volatility might lead the committee to delay adding new companies.
OMS: BTC is a risk-off asset!
2 - Sector Balance: The committee might decide to maintain a certain balance among sectors within the index, which could delay the inclusion of a company from an already well-represented sector.
OMS: Crypto must be represented in the S&P!
3 - Corporate Governance Concerns: Any concerns about the company's corporate governance practices or recent controversies could be a factor.
OMS: no issues here.
4 - Recent Changes: If the company has undergone significant changes, such as mergers, acquisitions, or restructuring, the committee might wait to see how these changes play out.
OMS: The S&P index committee is a private entity, and its decisions impact the primary tool used by the public and retirement pension funds buying passively in the S&P 500 through balanced portfolios. They need to be unbiased on MSTR and Bitcoin's value as a true definition of money (a better definition than the fiat standard).
The S&P Index Committee, while a private entity, plays a significant role in shaping the composition of the S&P 500, which in turn impacts public and retirement pension funds that track the index. Their decisions can have wide-reaching implications. The committee aims to be as objective and unbiased as possible, focusing on the established criteria for inclusion. However, the unique nature of MicroStrategy's significant Bitcoin holdings could introduce additional considerations. Bitcoin's volatility and its classification as a TradiFi "risk on" asset rather than a free, totally unbiased currency might be factors the committee weighs carefully.
Ultimately, while the committee strives for impartiality, including a company like MicroStrategy, with its substantial Bitcoin investments, is a step towards recognizing the evolving landscape of financial assets. Note that all components of the S&P 500 are assets, and MSTR has the potential to lead the way to adopting Bitcoin as the primary reference (like the Gold standard did before Nixon).
Bitcoin's volatility is mainly due to TradFi seeing it as a speculative «risk-on» asset while a «risk-off» deflationary asset! This view is changing fast, as Tradfi currently dismisses the Bitcoin protocol and how it works as risk-on speculative without understanding its sophistication and « digital gold » deflationary attributes.
Everyone was misled by not understanding the value of representing the definition of money. Few know that the fiat standard post-Nixon is a failed social experiment, as we see now. Hyperinflation is monetizing 1.5 earth equivalent consumption by printing more debt and money to keep this sinking ship afloat.
The current markets are like junkies playing the « risk on » game in believing that the Fed and the central bank are doing a soft landing. Last Friday's all-time high of the S&P 500 is an example of the market reaction to the Feb 0.5% rate cuts and China's announced stimulus (which will not prevent their recession and its contagion from that end as other Western factors are telling a different story that the Fed is behind and in panic mode… their soft landing "réthorique" is all smoke and mirrors).
Indeed, all components of the S&P 500 are assets, and MicroStrategy's significant Bitcoin holdings could position it uniquely within the index. The potential for Bitcoin to become a standard, similar to the historical Gold Standard, is on the table. The volatility often associated with Bitcoin is indeed a point of contention. TradFi views Bitcoin as a risk-on asset due to its price fluctuations. However, proponents argue that Bitcoin's deflationary nature and limited supply make it a risk-off asset, potentially hedging against inflation and economic instability.
If the S & P Index Committee recognizes these attributes and the evolving financial landscape, MicroStrategy's inclusion could pave the way for broader acceptance of Bitcoin within mainstream financial indices.
This is how to bring the Fiat standard's manipulation and societal divide back in order. The Fiat standard is falling fast, and the industrial, military complex and tentacles (within the S&P 500) need a big war to manipulate our fears and direct our attention to the USD as a risk-off asset. TradFi, the fiat standard and the military-industrial complex depend on each other to exist. TradFi has tried to kill Bitcoin, but that genie is out of the bottle as 35% of the world's population supports Bitcoin's current 1.8T market capitalization (vs. The U.S. military budget of 851B in 2024).
Refining the exact percentage of the world population that understands the perceived failures of the fiat standard since moving away from the gold standard is underway. However, awareness and understanding of these issues are growing, particularly among those involved in cryptocurrency, financial technology, and economic reform movements. Several factors contribute to this increasing awareness:
1 - Cryptocurrency Adoption: The rise of Bitcoin and other cryptocurrencies has brought attention to the limitations and vulnerabilities of fiat currencies.
2 - Economic Education: More people are educating themselves about monetary policy, inflation, and the history of the gold standard versus fiat currencies.
3—Global Economic Events: Economic crises, such as hyperinflation in many countries, have highlighted the weaknesses of the fiat system.
The shift towards Bitcoin and away from traditional fiat currencies is gaining significant momentum. Many people recognize the potential benefits of a decentralized, deflationary asset like Bitcoin, especially in light of the challenges faced by the fiat system. This movement could indeed lead to profound changes in the global financial landscape.
-----------
Reality check!
What would the price of gold be to be able to buy back the gold standard in place to replace the current fiat standard?
The price of gold is approximately $19,440 per ounce to fully back the current global money supply with a required minimum market capitalization of 129T. The current price per ounce is $2,682 for a total Market Capitalization of 18T. The discrepancy shows how the fiat standard underestimates the « cost » of money in exploiting the Earth.
We are now consuming 1.5 Earth equivalent. This is where the hyperinflation comes from to bite us with the manipulated debt base (printing to infinity, while the Earth's resources are finite). So the U.S. national debt is at 35T, Gold is the highest-valued asset class at 18T (while it should be at 129T as a Gold Standard reference to support the current worldwide money supply), and Bitcoin is now at $1,8T while the annual U.S. military budget is at 841B and supporting the world current economies.
To estimate the price of Bitcoin, which will replace the global fiat standard, we need to consider the total global money supply and the total supply of Bitcoin.
1 - Global Money Supply (M2): Approximately $125 trillion.
2 - Total Supply of Bitcoin: The maximum supply of Bitcoin is capped at 21 million BTC.
If Bitcoin were to replace the global fiat standard today, its price would be approximately $5,952,380 per BTC.
One Bitcoin contains 100 million blocks of encrypted data. One block, a unit, is called a Satoshi (from the name of Bitcoins creator (creators and Steve Jobs might be one of them). So there are 21 million Bitcoin and 2.1 quadrillion Satoshis. One satoshi would be worth the equivalent of 5.95 cents. This is why there is enough room to price everything in Bitcoin and Satoshis. Under the Bitcoin standard, USD 100 would be the equivalent of 1680 Satoshi. And because Bitcoin can only grow in value given its finite number of 21 million available coins, the Satoshis decimal value can only increase with time. This is a deflationary concept that would make the concept of money more valuable over time (and not the reverse with the current exploitative fiat standard system sucking the purchasing power of humans as a workforce).
---------
When MicroStrategy (MSTR) is included in the S&P 500, it will rank around the middle of the index. With a market capitalization of approximately $31.18 billion, it would be more significant than just under half of the current S&P 500 members. The genie is out of the bottle!
According to the latest reports, MicroStrategy holds approximately 214,246 BTC, representing about 1% of all Bitcoin mined. Given the positive net income from other operations, the minimum Bitcoin price for MicroStrategy to ensure overall positive earnings would be around $36,798. This price ensures that the Bitcoin holdings do not negatively impact overall profitability.
MSTR will remain profitable if Bitcoin maintains a price above $37,000, and it will have met the overall profitability criteria to access the S&P 500 index.
1 - Positive Earnings in the Most Recent Quarter: MSTR must report positive earnings in the most recent quarter. OMS: met!
2 - Positive Earnings Over the Previous Four Quarters: The sum of the company's earnings over the previous four quarters must also be positive. OMS: met!
3 - Market Capitalization: The company's market cap must be at least $8.2 billion OMS: met!
4 -Liquidity: The company's shares must be highly liquid OMS: very liquid, met!
5 - Public Float: At least 50% of the company's outstanding shares must be available for public trading. OMS: 86% public float, met!
6 - U.S. Company: The company must be based in the United States. OMS: met!
-----------
Current interest payments are already at levels that could be considered unsustainable if they continue to rise. Keeping interest payments below 4% of GDP and 20% of federal revenue is crucial to avoid unsustainability.
Therefore, an approximate interest cost we don't want to exceed would be around:
Debt interest max: 4% x 26.7 trillion≈1.068 trillion
Federal Revenues: 20% ×4.9 trillion≈0.98 trillion
If the S & P Index Committee recognizes these attributes and the evolving financial landscape, MicroStrategy's inclusion could pave the way for broader acceptance of Bitcoin within mainstream financial indices, ushering in a new era of financial stability and innovation.
End the FED and establish the Bitcoin Standard.
Let's all watch how this all unfolds.
OMS
The U.S. annual interest payment on its national debt is over 1T. The U.S. is entering the zone where they must borrow to make the interest payments. TradiFi needs to kill Bitcoin, but they can't because over 35% of the world's plebs are in support of a Bitcoin Standard paradigm shift. Now.
TradiFi needs a big war right now. It is their last resort. China keeps its eyes on the final prize… Taiwan.
-------------
The likelihood of its inclusion is relatively high, given that MicroStrategy (MSTR) meets all the primary criteria for inclusion in the S&P 500, including market capitalization, liquidity, public float, and profitability.
However, the final decision rests with the S&P Index Committee, which considers additional factors such as:
1 - Market Conditions: Unfavorable market conditions or volatility might lead the committee to delay adding new companies.
OMS: BTC is a risk-off asset!
2 - Sector Balance: The committee might decide to maintain a certain balance among sectors within the index, which could delay the inclusion of a company from an already well-represented sector.
OMS: Crypto must be represented in the S&P!
3 - Corporate Governance Concerns: Any concerns about the company's corporate governance practices or recent controversies could be a factor.
OMS: no issues here.
4 - Recent Changes: If the company has undergone significant changes, such as mergers, acquisitions, or restructuring, the committee might wait to see how these changes play out.
OMS: The S&P index committee is a private entity, and its decisions impact the primary tool used by the public and retirement pension funds buying passively in the S&P 500 through balanced portfolios. They need to be unbiased on MSTR and Bitcoin's value as a true definition of money (a better definition than the fiat standard).
The S&P Index Committee, while a private entity, plays a significant role in shaping the composition of the S&P 500, which in turn impacts public and retirement pension funds that track the index. Their decisions can have wide-reaching implications. The committee aims to be as objective and unbiased as possible, focusing on the established criteria for inclusion. However, the unique nature of MicroStrategy's significant Bitcoin holdings could introduce additional considerations. Bitcoin's volatility and its classification as a TradiFi "risk on" asset rather than a free, totally unbiased currency might be factors the committee weighs carefully.
Ultimately, while the committee strives for impartiality, including a company like MicroStrategy, with its substantial Bitcoin investments, is a step towards recognizing the evolving landscape of financial assets. Note that all components of the S&P 500 are assets, and MSTR has the potential to lead the way to adopting Bitcoin as the primary reference (like the Gold standard did before Nixon).
Bitcoin's volatility is mainly due to TradFi seeing it as a speculative «risk-on» asset while a «risk-off» deflationary asset! This view is changing fast, as Tradfi currently dismisses the Bitcoin protocol and how it works as risk-on speculative without understanding its sophistication and « digital gold » deflationary attributes.
Everyone was misled by not understanding the value of representing the definition of money. Few know that the fiat standard post-Nixon is a failed social experiment, as we see now. Hyperinflation is monetizing 1.5 earth equivalent consumption by printing more debt and money to keep this sinking ship afloat.
The current markets are like junkies playing the « risk on » game in believing that the Fed and the central bank are doing a soft landing. Last Friday's all-time high of the S&P 500 is an example of the market reaction to the Feb 0.5% rate cuts and China's announced stimulus (which will not prevent their recession and its contagion from that end as other Western factors are telling a different story that the Fed is behind and in panic mode… their soft landing "réthorique" is all smoke and mirrors).
Indeed, all components of the S&P 500 are assets, and MicroStrategy's significant Bitcoin holdings could position it uniquely within the index. The potential for Bitcoin to become a standard, similar to the historical Gold Standard, is on the table. The volatility often associated with Bitcoin is indeed a point of contention. TradFi views Bitcoin as a risk-on asset due to its price fluctuations. However, proponents argue that Bitcoin's deflationary nature and limited supply make it a risk-off asset, potentially hedging against inflation and economic instability.
If the S & P Index Committee recognizes these attributes and the evolving financial landscape, MicroStrategy's inclusion could pave the way for broader acceptance of Bitcoin within mainstream financial indices.
This is how to bring the Fiat standard's manipulation and societal divide back in order. The Fiat standard is falling fast, and the industrial, military complex and tentacles (within the S&P 500) need a big war to manipulate our fears and direct our attention to the USD as a risk-off asset. TradFi, the fiat standard and the military-industrial complex depend on each other to exist. TradFi has tried to kill Bitcoin, but that genie is out of the bottle as 35% of the world's population supports Bitcoin's current 1.8T market capitalization (vs. The U.S. military budget of 851B in 2024).
Refining the exact percentage of the world population that understands the perceived failures of the fiat standard since moving away from the gold standard is underway. However, awareness and understanding of these issues are growing, particularly among those involved in cryptocurrency, financial technology, and economic reform movements. Several factors contribute to this increasing awareness:
1 - Cryptocurrency Adoption: The rise of Bitcoin and other cryptocurrencies has brought attention to the limitations and vulnerabilities of fiat currencies.
2 - Economic Education: More people are educating themselves about monetary policy, inflation, and the history of the gold standard versus fiat currencies.
3—Global Economic Events: Economic crises, such as hyperinflation in many countries, have highlighted the weaknesses of the fiat system.
The shift towards Bitcoin and away from traditional fiat currencies is gaining significant momentum. Many people recognize the potential benefits of a decentralized, deflationary asset like Bitcoin, especially in light of the challenges faced by the fiat system. This movement could indeed lead to profound changes in the global financial landscape.
-----------
Reality check!
What would the price of gold be to be able to buy back the gold standard in place to replace the current fiat standard?
The price of gold is approximately $19,440 per ounce to fully back the current global money supply with a required minimum market capitalization of 129T. The current price per ounce is $2,682 for a total Market Capitalization of 18T. The discrepancy shows how the fiat standard underestimates the « cost » of money in exploiting the Earth.
We are now consuming 1.5 Earth equivalent. This is where the hyperinflation comes from to bite us with the manipulated debt base (printing to infinity, while the Earth's resources are finite). So the U.S. national debt is at 35T, Gold is the highest-valued asset class at 18T (while it should be at 129T as a Gold Standard reference to support the current worldwide money supply), and Bitcoin is now at $1,8T while the annual U.S. military budget is at 841B and supporting the world current economies.
To estimate the price of Bitcoin, which will replace the global fiat standard, we need to consider the total global money supply and the total supply of Bitcoin.
1 - Global Money Supply (M2): Approximately $125 trillion.
2 - Total Supply of Bitcoin: The maximum supply of Bitcoin is capped at 21 million BTC.
If Bitcoin were to replace the global fiat standard today, its price would be approximately $5,952,380 per BTC.
One Bitcoin contains 100 million blocks of encrypted data. One block, a unit, is called a Satoshi (from the name of Bitcoins creator (creators and Steve Jobs might be one of them). So there are 21 million Bitcoin and 2.1 quadrillion Satoshis. One satoshi would be worth the equivalent of 5.95 cents. This is why there is enough room to price everything in Bitcoin and Satoshis. Under the Bitcoin standard, USD 100 would be the equivalent of 1680 Satoshi. And because Bitcoin can only grow in value given its finite number of 21 million available coins, the Satoshis decimal value can only increase with time. This is a deflationary concept that would make the concept of money more valuable over time (and not the reverse with the current exploitative fiat standard system sucking the purchasing power of humans as a workforce).
---------
When MicroStrategy (MSTR) is included in the S&P 500, it will rank around the middle of the index. With a market capitalization of approximately $31.18 billion, it would be more significant than just under half of the current S&P 500 members. The genie is out of the bottle!
According to the latest reports, MicroStrategy holds approximately 214,246 BTC, representing about 1% of all Bitcoin mined. Given the positive net income from other operations, the minimum Bitcoin price for MicroStrategy to ensure overall positive earnings would be around $36,798. This price ensures that the Bitcoin holdings do not negatively impact overall profitability.
MSTR will remain profitable if Bitcoin maintains a price above $37,000, and it will have met the overall profitability criteria to access the S&P 500 index.
1 - Positive Earnings in the Most Recent Quarter: MSTR must report positive earnings in the most recent quarter. OMS: met!
2 - Positive Earnings Over the Previous Four Quarters: The sum of the company's earnings over the previous four quarters must also be positive. OMS: met!
3 - Market Capitalization: The company's market cap must be at least $8.2 billion OMS: met!
4 -Liquidity: The company's shares must be highly liquid OMS: very liquid, met!
5 - Public Float: At least 50% of the company's outstanding shares must be available for public trading. OMS: 86% public float, met!
6 - U.S. Company: The company must be based in the United States. OMS: met!
-----------
Current interest payments are already at levels that could be considered unsustainable if they continue to rise. Keeping interest payments below 4% of GDP and 20% of federal revenue is crucial to avoid unsustainability.
Therefore, an approximate interest cost we don't want to exceed would be around:
Debt interest max: 4% x 26.7 trillion≈1.068 trillion
Federal Revenues: 20% ×4.9 trillion≈0.98 trillion
If the S & P Index Committee recognizes these attributes and the evolving financial landscape, MicroStrategy's inclusion could pave the way for broader acceptance of Bitcoin within mainstream financial indices, ushering in a new era of financial stability and innovation.
End the FED and establish the Bitcoin Standard.
Let's all watch how this all unfolds.
OMS
Note
Corrections for clarity:
Bitcoin's volatility is mainly due to TradFi seeing it as a speculative «risk-on» asset while *ACTUALLY DESIGNED AS a «risk-off» deflationary asset! This view is changing fast, as Tradfi currently dismisses the Bitcoin protocol and how it works *, THINKING IT'S A as risk-on speculative without understanding its sophistication and « digital gold » deflationary attributes.
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