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Strive Vice President: Major global capital allocators already have tools related to Bitcoin that align with their views
Svmuu News: Joe Burnett, Vice President of Strive, posted on X, stating that the annualized BTC breakeven rate is often difficult to understand, and it is important to understand why.There are roughly three schools of thought regarding Bitcoin: Bullish investors Bitcoin believe Bitcoin will appreciate significantly. If they can borrow long-term capital at a cost below 20% and expect Bitcoin to achieve a compound annual growth rate higher than that level in the future, they are willing to leverage their positions to buy more Bitcoin;Neutral Bitcoin Investors have a much lower required rate of return for Bitcoin. According to Michael Saylor’s post, even if Bitcoin grows by only 3.3% annually, they could still sustain current dividends through capital gains from Bitcoin—a different bet from believing that Bitcoin will grow at a compound annual growth rate of over 20%.For context, the historical annual growth rate of the U.S. dollar M2 money supply is approximately 7 percent,BTC is a scarce monetary asset with a long-term supply growth rate of 0%; therefore, digital credit buyers do not need to be extremely bullish on Bitcoin. They primarily need to believe that Bitcoin will not disappear and will roughly keep pace with U.S. dollar inflation. This appeals to a broader audience, and Joe Burnett notes that this may already be the current global consensus view on Bitcoin.Investors who are bearish on Bitcoin can also express their views by shorting Bitcoin or shorting Amplified Bitcoin.Currently, there are three clear ways to allocate capital: to be bullish on Bitcoin, one can hold Bitcoin and Amplified Bitcoin; to be neutral on Bitcoin, one can hold Digital Credit; and to be bearish on Bitcoin, one can short Bitcoin or Amplified Bitcoin. Every major capital allocator now has a Bitcoin-related instrument that aligns with their worldview, and this is how more than $1 trillion in global capital is beginning to flow into Bitcoin.
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