Microstrategy just came out with yet another convertible note offering.
Two questions come up
What is the motivation of those buying these bonds making 0%?
What is the motivation of those buying the equity at these sky-high prices?
Soros and Strange Attractors…
In his speech from 2010, George Soros said something that I never forgot.
This was it 👇
The extent and degree of uncertainty is itself uncertain and variable. Conditions may range from near-equilibrium to far from equilibrium. Again, it is the variance that matters. In practice markets have a tendency to move towards one of these extremes rather than to hover near a historical or theoretical midpoint between them. In evolutionary systems theory these extremes are called “strange attractors”. My contention is that financial markets tend towards these strange attractors, not to equilibrium. So much for theory.
What Soros is trying to communicate here is that markets don’t really “tend towards equilibrium” as economic theory postulates — they just go from extreme to extreme.
In this case the extremes are the strange attractors. It’s either -1000 or +1000, to put numbers on it.
Bitcoin Feast or Famine
It seems Bitcoin is the same. In this short podcast I give my short thoughts on the Microstrategy — Bitcoin “bubble” and how it could end.
For the course, philomastery.com.
Sincerely,
Philo 🦉
Appendix
Bitcoin
Microstrategy
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