Part 5/15:
Yet, the real significance isn’t just higher yields; it’s the monetary feedback loop it creates. When institutions like MicroStrategy use Stretch to buy real Bitcoin, they tighten supply, causing Bitcoin’s price to rise. The rising price, in turn, increases their collateral strength, reducing their cost of capital, fueling more Bitcoin purchases, and reinforcing scarcity—creating a powerful self-sustaining cycle. This engine threatens the old system’s ability to manipulate markets through claims, rehypothecation, and synthetic exposure.