Makes so much sense, right? Except it’s problematic to do the accounting that way. I understand that’s the GAAP accounting and that’s what’s required. But just because that’s required doesn’t mean you have to think that way. You can think any way you want. So let’s just go through, compare and contrast the way we look at things. When you buy a cryptocurrency mining machine, it may not be apparent to you, but you don’t pay dollars for it. It’s priced in dollars. But the manufacturers don’t want dollars, they want crypto. So when you are buying equipment, the relevant question is, I’m buying a certain number of machines, you’re not buying one, you’re buying lots of them, you’re buying a certain number of machines, it’s costing you a finite amount of crypto.
The relevant question is, over the operative life of the machine, are you going to get more crypto than you paid for the machines? And if the answer is yes, which it may not be, if the answer is yes, well how much more is that going to be? So for example, if you paid a 100 crypto, a 100 Bitcoin let’s say for a group of machines to make it sensible, you’re going to have to get over life in machines at least 160, maybe 175 or 180 Bitcoin back. If you can’t see that happening, you ought not to invest in the machines. So the halving, that’s why I refer to halving, the halving is known in advance. You know how many days you have. So the halving is on a date certain, so you can calculate, well, do I have enough time to get, I’m usually using the number 180 as an example.
If you can’t see earning 180 crypto over life machine, when you paid a 100, a 100 crypto for the equipment, you have to cease investing. So the performance of the dollar in relation to Bitcoin or Bitcoin in relation to dollar is irrelevant because you’re raising dollar, you’re not paying dollars. That’s the mistake everybody made. And why use equity when you can use debt? Now we don’t like the equity for reasons I mentioned earlier because it’s a perpetuity. We don’t want to use debt. Debt we don’t use as well. So we are trying to create all our capital internally or at least most of it internally, which is another thing people don’t want do. So you further complexified the problem. You’re bringing investors with their capital and now you’re trying to figure out what is the price of Bitcoin in relation to the United States dollar at any point in time.
And remember that debt is due on a certain fixed date that’s why they call it fixed income. So even if Bitcoin outperforms dollar in the fullness of time, how do you know that Bitcoin is a game performed dollar during the life of the fixed income liability that you’ve assumed, you don’t really know that do you? So therefore it makes more sense to operate entirely in crypto. And by the way, my second point is, what’s the purpose of crypto? The whole purpose of crypto is to be outside of the dollar fiat currency system. So if you want to be outside the dollar of fiat currency system, be outside the dollar currency fiat system and calculate everything in Bitcoin because that part of the business, the Bitcoin business, you’re operating outside dollar system.
