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RVing Orchardist @ScubaMikeBTC on x XXX followers
Created: 2025-07-22 22:56:26 UTC
If you were wondering by how Hyperbitcoinization happens, it’s through this Bitcoin backed yield curve.
If Bitcoin sustains Michael Saylor's assumed XX% CAGR over XX years, reaching ~$32 million per coin by 2050, and Strategy (formerly MicroStrategy) maintains a XX% debt-to-Bitcoin ratio, its $XXXX trillion Bitcoin portfolio and $5-10 trillion in preferred stock issuance could significantly challenge sovereign debt markets. If competitors like Metaplanet, XXI, SQNS, and Adam Back’s new company (e.g., Blockstream or a similar entity) scale to comparable size—each holding $20-30 trillion in Bitcoin and issuing $4-8 trillion in high-yield, Bitcoin-backed securities—the combined $20-40 trillion in corporate crypto-backed debt would disrupt the future assumed $XX trillion U.S. Treasury market. This scenario would divert substantial capital from T-bills and other sovereign debt, potentially forcing yields to rise sharply (e.g., 10-15% for T-bills vs. 5-7% today) to compete with 9-12% yields from corporate Bitcoin securities. To sustain XX% T-bill yields in the U.S. (vs. 4-5% in 2025) and higher rates for foreign sovereign debt (e.g., 20-25% for emerging markets), significant inflation would be required to erode real debt burdens and boost nominal tax revenues. The U.S. debt is ~$35 trillion (125% of GDP) in 2025, projected to hit ~$70 trillion by 2050 (assuming X% GDP growth). Foreign debt (e.g., Japan at XXX% debt-to-GDP, Eurozone at 90%) faces similar pressures. To service XX% yields on $XX trillion, the U.S. would need ~$10.5 trillion annually in interest payments (vs. ~$1 trillion in 2025). Assuming tax revenue covers XX% of GDP, inflation of 10-15% annually would be needed to inflate GDP (e.g., to $70-100 trillion by 2050) and tax receipts to manage interest without default. Foreign nations with weaker economies might require 20-30% inflation to service 20-25% yields, risking hyperinflation in less stable regimes. This will reinforce Saylor's assumption of XX% annual returns as people flee their hyperinflating currencies.
It’s a self reinforcing sovereign debt market destroying circle.
XX engagements
Related Topics curve yield curve bitcoin coins layer 1 coins bitcoin ecosystem coins pow strategy stocks financial services