operation_saylor/evangelism/episodes/episode_5.md

# Operation Saylor - Episode 5/120

Hi again and welcome to another episode of the Operation Saylor. This is update number 5, corresponding to November

2022.

If you are reading this for first time, you might want to check [Episode 1](https://stacker.news/items/47539), where my
plan and details are explained. That will get you in context.

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## Stats

- BTC stack: 1.1628 BTC
- € stack: 6,535.20 €
- Current total value in €: 25,140.00 €
- € into BTC: 25,000 €
- Paid back to bank: 1,464.80 €
- Outstanding debt: 42,479.53 €
- Installments to go: 116

Charts

![img.png](../images/episode_5_stack_value_vs_debt.png)

---

## Log

During last month I came across a couple of reads and a new company that brought me to think I'm not as crazy as I look
like.

The first read was a section of the Fiat Standard, where Saifedean discusses possible scenarios on how a transition
from a fiat world to a hyperbitcoinized one could look like. On it, he discusses that there are both forces that push
for a smooth transition as well as for an abrupt one. As part of his analysis, he presents the following:

	A counter-point to consider to the preceding two sections' analysis is the
	impact of the strategy of borrowing dollars to buy bitcoin. While many
	people would be tempted to exit fiat debt entirely and shift to holding hard
	bitcoin savings, the continued existence and wide availability of fiat debt
	will offer a strong incentive to borrow fiat and use it to accumulate bitcoin.
	One of the smartest and most far-seeing analysts of bitcoin, Pierre
	Rochard, had identified this phenomenon as early as 2013, outlining how
	bitcoin allows investors worldwide to carry out a speculative attack on all
	national currencies similar to what George Soros and beneficiaries of low
	interest rate lending have been doing to weak national currencies for
	decades, with spectacular success. The speculative attack strategy is to
	borrow the weak currency, and use the proceeds to buy the stronger
	currency. As the borrowing of the weak currency causes an increase in its
	supply, selling it to buy the strong currency causes a decrease in demand
	for it, and results in the decline of its value next to the stronger currency.
	This reduces the value of the loan the attacker owes, and increases the
	value of the currency he holds, a highly lucrative combination. With bitcoin
	a harder currency than all national currencies, it could serve as the perfect
	launchpad for attacks against national currencies. It is a natural evolution
	of the interaction between the two forms of money: hard bitcoin is
	optimized for appreciating as it is held, while fiat is optimized for devaluing
	as it is inflated and lent. The likelihood of speculative attacks casts doubt
	on the monetary upgrade scenario discussed above. How long can fiat
	survive if people can keep inflating its supply by borrowing it to buy harder
	bitcoin? We have never seen a similar situation and it is hard to estimate how this will unfold.

So apparently, I have started an speculative attack on the euro without even noticing. Shit happens.

After reading that, I pulled the string to
the [original piece by Pierre Rochard](https://nakamotoinstitute.org/mempool/speculative-attack/)
, which I highly recommend you go and read now. It's concise and extremely insightful.

The part that gets me most excited and simultaneously scared is the idea, proposed both by Saifedean and Pierre, that
the inevitability of the speculative attack makes Bitcoin adoption an accelerating phenomenon, and not a slowly fading
one as many people picture. Not a logarithmic curve, kind of like the chart of BTC in circulation by year, but rather
an S curve, where the fastest middle part might break a few necks.

Lastly, I recently learned about this soon-to-launch company called [Faucet21](https://faucet21.com/). Their proposal?
Giving away personal loans like the one I got with the sole purpose of buying Bitcoin. As they put it, "Distributed,
Retail Level speculative attack". They even have a nice calculator you can use to simulate the expected return of this
strategy. You can go and play with my loan's numbers, for example.

When I started planning and executing Operation Saylor, I knew I was not the only one having this idea. But now, I must
say I'm surprised at how old the idea is and how common it could eventually become. Because, from a game theory lens, 
every person that jumps on the loan-for-BTC boat is hurting the fiat and strengthening Bitcoin. If enough people do 
it... It reminds of the old quote from Satoshi: “It might make sense just to get some in case it catches on. If 
enough people think the same way, that becomes a self fulfilling prophecy.”

Well, I hope some of you don't think I'm that crazy after today's read, and perhaps some might even be thinking about
joining the club. I'll see you again next month.

---

## Previous episodes

- Episode 1: [https://stacker.news/items/47539](https://stacker.news/items/47539)
- Episode 2: [https://stacker.news/items/61708](https://stacker.news/items/61708)
- Episode 3: [https://stacker.news/items/71794](https://stacker.news/items/71794)
- Episode 4: [https://stacker.news/items/83670](https://stacker.news/items/83670)