Sam Altman-Backed Crypto Startup Raises $100M Bitcoin Private Credit Fund | Hacker News Reader

Sam Altman-Backed Crypto Startup Raises $100M Bitcoin Private Credit Fund

coincu.com

17 pointschollida15 comments

I must be missing something. This fund succeeds if and only if Bitcoin prices increase.

LPs are investing USD, which is immediately converted to Bitcoin. Newly converted Bitcoin is lent to borrowers, yielding returns for LPs.

Why are LPs willing to incur both default risk and Bitcoin price volatility risk when they could simply lend USD directly to borrowers, incurring only the default risk? If lenders assume Bitcoin borrowers are more likely to default (and I am saying if), they're assuming a greater default risk, in addition to the volatility risk.

I have to imagine Sam Altman and co. have a reason to believe there's something to this model. What do they see that I can't?

It mentions a 7 year period. The company is essentially going all in on bitcoin and the period will allow them to ride the short term volatility and the 20% _BTC_ denominated interest is an enormous incentive to them.

I assume they see bitcoin similarly to me - that it will reach _at least_ $0.5M/BTC by the end of the decade. IYKYK, and it looks like they know.

This is the creepiest usage of technology hidden as some sort of utilitarian project that I know of. Going to be fun to see when they try to go-to-market and they realize that people actually don't want to have their eyes scanned by some sort of "orb".

> This is the creepiest usage of technology hidden as some sort of utilitarian project that I know of. Going to be fun to see when they try to go-to-market and they realize that people actually don't want to have their eyes scanned by some sort of "orb".

?? This has nothing to do with Sam's worldcoin. This is a completely separate private closed end fund that Sam is backing that will invest in bitcoin and lend bitcoin out to generate yield.

Okay, this is a bit embarrassing. I thought I was commenting on a different article…. Disregard my original comment.

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