
The Real Cost of Guarantees—and Where Bitcoin’s Promise Ends
By Fundamentals
Aired Mar 10, 2026 · 22m · Last boosted Mar 11, 2026
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Show Notes
https://www.magicinternetmath.com In this solo “Fundamentals of Fundamentals” episode, I dig into the real economics of guarantees—what they are, why they always cost something, and how misunderstanding their boundaries breeds bad decisions. I walk through intuitive examples (from a 3 PM pickup promise to banks and letters of credit) and the institutional mechanics I used to run—hedging market exposure, volatility assumptions, rate sensitivity, and why delivering a financial guarantee shows up in someone’s P&L. Then I pivot to Bitcoin’s unique guarantee: protocol rules that don’t change and funds spendable with...
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