Personal Power
Like learning to drive and no longer depending on others for rides
From: Bitcoin for Institutions
Bitcoin for Institutions | Math Academy
Interactive course on Bitcoin for institutional investors
Bitcoin for Institutions
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Insights from "Bitcoin for Institutions" by Brian Hirschfield. Learn how institutional investors can approach Bitcoin.
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Key Insight from Bitcoin for Institutions:
3. Companies think in quarters, not years —but bitcoin mastery is closer to a human lifetime than a quarter.
Chapter: Bitcoin Requires More Patience and Time than Institutions Have
Bitcoin for Institutions | Math Academy
Interactive course on Bitcoin for institutional investors
Key Insight from Bitcoin for Institutions:
5. The opportunity is real - bitcoin can help transcend previous system failures, but only with proper institutional frameworks.
Chapter: Epilogue
Bitcoin for Institutions | Math Academy
Interactive course on Bitcoin for institutional investors
The Action
In August 2020, he converted $250 million into approximately 21,000 bitcoin. The rest is monetary history.
From: Bitcoin for Institutions
Bitcoin for Institutions | Math Academy
Interactive course on Bitcoin for institutional investors
Key Insight from Bitcoin for Institutions:
4. Institutions must shift to Future Value thinking to properly understand bitcoin's role in protecting purchasing power.
Chapter: Bitcoin Requires a Deflationary Mindset
Bitcoin for Institutions | Math Academy
Interactive course on Bitcoin for institutional investors
The Strategy
1. Assume a forward-looking return of bitcoin as an actuarial assumption (30% or 40% a year is reasonable based on historical data). 2. Establish a clearly defined program that actually sells a certain amount of bitcoin regularly. 3. Demonstrate to auditors and regulators the ability to execute this strategy. 4. Classify a percentage of treasury gains as operating income instead of capital gains. To illustrate how a company could do this, consider a large bitcoin mining company that holds a BTC treasury from their mining operations:
From: Bitcoin for Institutions
Bitcoin for Institutions | Math Academy
Interactive course on Bitcoin for institutional investors
""The crux of the matter is the notion that HODL'ing is an irrational and unreasonable act, or at least requires a willful ability to be irrational or unreasonable.""
— Brian Hirschfield
From: HODL'ing Bitcoin is Irrational
Bitcoin for Institutions | Math Academy
Interactive course on Bitcoin for institutional investors
""Using bitcoin in funds is the most obvious and non-thinking way for a fund, their investors, and their investors' shareholders to sleepwalk their way to unimaginable wealth.""
— Brian Hirschfield
From: Mutual Funds / ETFs - Wielding the Blade
Bitcoin for Institutions | Math Academy
Interactive course on Bitcoin for institutional investors
As an engineer, Saylor explained the properties of bitcoin from an engineering perspective in a way that is likely responsible for levelling up the understanding of bitcoin from "Magic Internet Money" to "Thermodynamically Sound Digital Real Estate." Saylor's worldview was simple. He had a $250 million pile of cash in 2020 and was looking at an epic monetary debasement of Western fiat currencies. The US was on its way to printing $7 trillion over an M2 monetary base of $15 trillion. $7 trillion printed over $15 trillion M2 base - nearly a 50% expansion of the money supply in a short period. Western cash holders were caught off guard, lulled into complacency by fifteen years of gaslighting ab...
From: Strategy (Balance Sheet Strength)
Bitcoin for Institutions | Math Academy
Interactive course on Bitcoin for institutional investors
...then the need for a censorship-resistant, permissionless money becomes self-evident. Bitcoin, held in self-custody, could not have been blocked, frozen, or redirected by any government.
From: Bitcoin Users Value Privacy
Bitcoin for Institutions | Math Academy
Interactive course on Bitcoin for institutional investors
ℹ️ Small Employers: It would make sense for owners of small companies (under 100 employees) to offer a defined benefit plan and maximize their contributions in bitcoin. Before the 1990s, hundreds of thousands of such companies offered pensions as a great tax shelter that also provided compensation to employees.
From: Pensions
Bitcoin for Institutions | Math Academy
Interactive course on Bitcoin for institutional investors
""I'd say that there are about six minutes left in the game, and it is time to pull the goalie. Bitcoin is ready.""
— Brian Hirschfield
From: Pensions
Bitcoin for Institutions | Math Academy
Interactive course on Bitcoin for institutional investors
A key determinant of whether it pays to pull the goalie is how much time is left in the game . According to Brown/Asness, it made sense to pull the goalie with six minutes left - an uncomfortably long time that seems unintuitive but maximizes winning probability.
From: Pensions
Bitcoin for Institutions | Math Academy
Interactive course on Bitcoin for institutional investors
""If a borrower posts bitcoin as collateral, this loan would automatically become the most senior loan. A person will let any other asset go before relinquishing their bitcoin to a lender.""
— Brian Hirschfield
From: Structured Credit
Bitcoin for Institutions | Math Academy
Interactive course on Bitcoin for institutional investors
Key Insight from Bitcoin for Institutions:
1. Bitcoin is peer-to-peer. It is a cash system designed for individuals, and companies are always an individual acting on their behalf.
Chapter: HODL'ing Bitcoin is Irrational
Bitcoin for Institutions | Math Academy
Interactive course on Bitcoin for institutional investors
ℹ️ The Four-Year Rhythm: The earliest that bitcoin collateral can be wound down is four years, aligned with bitcoin's four-year halving cycle. The loan carries a single-digit interest rate and has a maturity of 10 years.
From: Structured Credit
Bitcoin for Institutions | Math Academy
Interactive course on Bitcoin for institutional investors
ℹ️ Market Cap Explosion: Strategy's market capitalization has grown from approximately $1 billion to nearly $100 billion, driven primarily by their bitcoin holdings. They await S&P 500 entry despite meeting the criteria.
From: Strategy (Balance Sheet Strength)
Bitcoin for Institutions | Math Academy
Interactive course on Bitcoin for institutional investors
An important feature that makes it unintuitive for both individuals and institutions to integrate bitcoin into their financial landscapes is its deflationary nature , or at least highly disinflationary design. Bitcoin is the largest fixed-supply asset on Earth, programmed by its immutable protocol to cap out at 21 million whole units.
From: Bitcoin Requires a Deflationary Mindset
Bitcoin for Institutions | Math Academy
Interactive course on Bitcoin for institutional investors
A key determinant of whether it pays to pull the goalie is how much time is left in the game . According to Brown/Asness, it made sense to pull the goalie with six minutes left - an uncomfortably long time that seems unintuitive but maximizes winning probability.
From: Pensions
Bitcoin for Institutions | Math Academy
Interactive course on Bitcoin for institutional investors
Existential Necessity
It usually requires an existential problem to get all of the battleships aligned around a single long-term objective.
From: Bitcoin for Institutions
Bitcoin for Institutions | Math Academy
Interactive course on Bitcoin for institutional investors