Gyroscopic Investing

This is really a pile of stupidity.

https://www.cnbc.com/2024/12/13/bitcoin ... q-etf.html

The initial weight will be about 0.5%, but since MicroStrategy uses company borrowing power to buy Bitcoin, anyone who owns MicroStategy really has more Bitcoin exposure than 0.5%.

https://www.businessinsider.com/microst ... is-2024-12

It'll keep going up until it doesn't. I think it harms NASDAQ 100 and QQQ. MicroStrategy is the very definition of a bubble.

I don't have any QQQ, but I'm surely not going to buy any after this change. SCHG is almost like QQQ, but a different index (Dow Jones U.S. Large-Cap Growth Total Stock Market Index). I put in a Google Alert for "MicroStrategy Dow Jones U.S. Large-Cap Growth Total Stock Market Index" I hope it doesn't fire.

If MicroStrategy makes it into the S&P500 The End Is Near.

My favourite part about this is that the folks at the bogleheads forum are buying ever increasing amounts of bitcoin whether they like it or not.

Smith1776 wrote: ↑Mon Dec 16, 2024 4:05 am

My favourite part about this is that the folks at the bogleheads forum are buying ever increasing amounts of bitcoin whether they like it or not.

BWAHAHAHAHAHA

ochotona wrote: ↑Sun Dec 15, 2024 10:53 pm This is really a pile of stupidity.
…
It'll keep going up until it doesn't. I think it harms NASDAQ 100 and QQQ. MicroStrategy is the very definition of a bubble.
…

Bitcoin is the definition of a bubble. As a medium of exchange, kind of neat. Technology, great. As something to protect against unlimited dollar printing, ok. To an extent. As an investment, to quote the late Charlie Munger of Berkshire, it’s rat poison.

dualstow wrote: ↑Mon Dec 16, 2024 8:59 am

ochotona wrote: ↑Sun Dec 15, 2024 10:53 pm This is really a pile of stupidity.
…
It'll keep going up until it doesn't. I think it harms NASDAQ 100 and QQQ. MicroStrategy is the very definition of a bubble.
…

Bitcoin is the definition of a bubble. As a medium of exchange, kind of neat. Technology, great. As something to protect against unlimited dollar printing, ok. To an extent. As an investment, to quote the late Charlie Munger of Berkshire, it’s rat poison.

Was thinking roughly the same thing this morning so 100% with you.

If the US Treasury starts becoming a price-insensitive buyer of BTC (using BTC alongside Gold as a reserve asset), plus MicroStrategy being a levered play itself on BTC which will have enormous number of price-insensitive QQQ buyers... institutions, not only retail... it's easy to see how this could go way up very quickly in a very fun kind of way and resolve in a very bad kind of way eventually.