Founder, bitHedge Fund I | Bitcoin upside; return of capital backstopped by US commercial real estate | CRE operator, bitcoiner | 506(c) | Not investment advice
Salt Lake City, UT
Joined September 2011
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Most investors want bitcoin upside but can't stomach the drawdowns. Most owners of commercial real estate have equity sitting idle and no way to put it to work without selling or refinancing.
We built a fund where each one solves the other's problem.
How bitHedge Fund I works:
“Your BTC is used to mint cbBTC out of thin air, which gets pushed onto @Morpho. If Morpho gets hacked or the cbBTC disappears, Coinbase loses none of the collateralized BTC.
Coinbase keeps the real BTC.
So the borrower gets:
• Smart contract risk
• Morpho risk
• Wrapped BTC risk”
Coinbase loans just got a LOT more expensive overnight.
@Coinbase BTC-backed loan interest rates spiked from ~5% to over 13.8%
It's settled down slightly to 9.75% this morning. Currently ~2x the cost of the loan as is was yesterday.
And here's the part most people still don't understand:
Your BTC is used to mint cbBTC out of thin air, which gets pushed onto @Morpho. If Morpho gets hacked or the cbBTC disappears, Coinbase loses none of the collateralized BTC.
You do.
Coinbase keeps the real BTC.
So the borrower gets:
• Smart contract risk
• Morpho risk
• Wrapped BTC risk
...AND now gets to pay 2x to 3x higher interest for that risk.
How many people understood THAT when they clicked "Borrow"?
Daniel Holbrook retweeted
As far as I can tell, this chart has never been created before.
The current BTC exchange rate adjusted to the M2 supply of USD in January 2009 is $27,663
lopp.net/bitcoinflation/btc-…
It's not just the sats income.
It's the brand: heat reuse, energy efficient.
Not just for finance. For marketing and PR too.
Who in your org champions it first?
@ChrisDrz on @REstandardPod Ep 40 with @TimKotzman
Full episode: nitter.cf/REstandardPod/status/2…
The Real Estate Standard Podcast Episode 40 nitter.cf/i/broadcasts/1DGLdZzLa…
Big conferences give you volume.
Small rooms give you signal.
Almost everyone in the room was building something.
Big stage or small room: which pays off for you?
From @REstandardPod Ep 40 with @ChrisDrz and @TimKotzman
Full episode: nitter.cf/REstandardPod/status/2…
The Real Estate Standard Podcast Episode 40 nitter.cf/i/broadcasts/1DGLdZzLa…
Walk into a conference with 30,000 people.
They didn't pay all these people to show up to impress you.
Then Jeff Booth waves you over to his table.
What first told you Bitcoin was real?
@TimKotzman on @REstandardPod Ep 40 with @ChrisDrz
Full episode: nitter.cf/REstandardPod/status/2…
The Real Estate Standard Podcast Episode 40 nitter.cf/i/broadcasts/1DGLdZzLa…
Daniel Holbrook retweeted
18 years ago today, Satoshi released the #Bitcoin whitepaper.
What a legend! 🙌
SoCal brokers. Small-town appraisers.
Now we find ourselves in Bitcoin. Yes, you are my people.
Real estate folks: what was your path into Bitcoin?
From @REstandardPod Ep 40 with @ChrisDrz and @TimKotzman
Full episode: nitter.cf/REstandardPod/status/2…
The Real Estate Standard Podcast Episode 40 nitter.cf/i/broadcasts/1DGLdZzLa…
Once the light bulb goes off on Bitcoin, you see risk differently.
The average Joe has no idea. It's coming fast.
What was your light-bulb moment?
@ChrisDrz on @REstandardPod Ep 40 with @TimKotzman
Full episode: nitter.cf/REstandardPod/status/2…
The Real Estate Standard Podcast Episode 40 nitter.cf/i/broadcasts/1DGLdZzLa…
One Bitcoin-mining water heater is a gadget.
Thousands across a hotel chain or apartment portfolio is a strategy.
Should the tenants share in the sats?
From @REstandardPod Ep 40 with @ChrisDrz and @TimKotzman
Full episode: nitter.cf/REstandardPod/status/2…
The Real Estate Standard Podcast Episode 40 nitter.cf/i/broadcasts/1DGLdZzLa…
Heated floors, HVAC and a hot tub. All heated by Bitcoin miners.
That's @SpaceDenver, the BFFS venue.
Would you buy a hot tub that mines Bitcoin?
From @REstandardPod Ep 40 with @ChrisDrz and @TimKotzman
Full episode: nitter.cf/REstandardPod/status/2…
The Real Estate Standard Podcast Episode 40 nitter.cf/i/broadcasts/1DGLdZzLa…
Heat reuse is regeneration.
Same electricity. No new data center. Plugged into buildings that already need heat.
Where would you put the first one?
From @REstandardPod Ep 40 with @ChrisDrz and @TimKotzman
Full episode: nitter.cf/REstandardPod/status/2…
The Real Estate Standard Podcast Episode 40 nitter.cf/i/broadcasts/1DGLdZzLa…
$6.3B pulled from an exchange, and bitcoin itself never broke. The software and access around it did.
For families holding real wealth in bitcoin, custody is the decision, not the price.
The biggest heist in crypto history has blown past Binance’s emergency fund. How the exchange is rushing to cover the $6.3 billion hack. 🔗 on.wsj.com/4BSbFr1
2-3 months of free rent up front is becoming common in multifamily.
Absorption should fix it. Can you survive until it does?
Would you rather hold, or buy it from the bank?
From @REstandardPod Ep 40 with @ChrisDrz and @TimKotzman
Full episode: nitter.cf/REstandardPod/status/2…
The Real Estate Standard Podcast Episode 40 nitter.cf/i/broadcasts/1DGLdZzLa…
A water heater element that mines Bitcoin.
Not a profit engine, per @ChrisDrz. Maybe a dent in the electric bill.
Would you put one in your house?
@ChrisDrz on @REstandardPod Ep 40 with @TimKotzman
Full episode: nitter.cf/REstandardPod/status/2…
The Real Estate Standard Podcast Episode 40 nitter.cf/i/broadcasts/1DGLdZzLa…
23.6M US millionaires.
21M bitcoin, ever.
Not enough for each of them to own one.
Where does the next wave of bitcoin demand come from?
From @REstandardPod Ep 40 with @ChrisDrz and @TimKotzman
Full episode: nitter.cf/REstandardPod/status/2…
The Real Estate Standard Podcast Episode 40 nitter.cf/i/broadcasts/1DGLdZzLa…
The Bitcoin idea often hits a brick wall at the advisor's desk.
The fix: Bitcoin CE credits for CPAs and wealth managers.
Who's the first person you'd run a Bitcoin idea past?
@ChrisDrz on @REstandardPod Ep 40 with @TimKotzman
Full episode: nitter.cf/REstandardPod/status/2…
The Real Estate Standard Podcast Episode 40 nitter.cf/i/broadcasts/1DGLdZzLa…
Imagine TAM as long-term borrow-die strategy becomes institutionalized and retail/onchain accessible via tokenization.
Any early adopters arbitrage the shit out of debasement of everything still in fiat and their relatively cheap borrowing against pristine collateral. Especially if they are compounding and de-risking their credit for the lender.
Eloquently explained but only in simile. AI assistant can explain the Bitcoin technology, network effect, and other reasons why this category king comparison is accurate.
I think critical mass for Bitcoin as a competing “language” of finance (c.f. @CJKonstantinos) is already in motion if not reached. It just plays out slowly. The nature of wealth transfer; and this time it is being built on new rails with new management options. To say the least about a new technology to capture, transfer, and measure value.
-D
"Can my building mine Bitcoin profitably?" Almost always no.
"Can mining improve the heat my building already needs?" Often yes.
Same miner. Different question.
@ChrisDrz on @REstandardPod Ep 40 with @TimKotzman
Full episode: nitter.cf/REstandardPod/status/2…
The Real Estate Standard Podcast Episode 40 nitter.cf/i/broadcasts/1DGLdZzLa…