Bongo59 Posted February 21, 2021 Report Share Posted February 21, 2021 19 hours ago, abenjami said: Well I bought my first bitcoin this morning. Get ready for the crash. LOL You'll be fine considering where we are in the halving cycle. Link to post Share on other sites More sharing options...
Bongo59 Posted February 21, 2021 Report Share Posted February 21, 2021 So, if you are accredited investor you can get involved in a trust and get paid a yield on your coins while they custody it for you too. These new things are popping up everywhere. NYDIG is a place to look for those who have big accounts. Link to post Share on other sites More sharing options...
titanruss Posted February 21, 2021 Report Share Posted February 21, 2021 7 minutes ago, Bongo59 said: Sure you can on the derivative markets but you'd get crushed right now. Short interest right now is non existent on the FTX that's why he said we'd love for him to short so we can take his free money.... Supdawg 1 Link to post Share on other sites More sharing options...
Bongo59 Posted February 21, 2021 Report Share Posted February 21, 2021 Even though I disagree with 90% of his takes, I'd like everyone to get BTC correct. Why people do not get math and logarithmic movements: BTC going from $57K to $1M right now is the exact same % increase as going from $3.2k in March 2020 was to the current price of 58K. So if you think 1 million is ridiculous, realize the move happened already. History tends to repeat itself. Link to post Share on other sites More sharing options...
pat Posted February 21, 2021 Report Share Posted February 21, 2021 Bongo's argument about compound interest makes me feel awkward. There's no dividends in BTC -- only a bet that it will be more popular in the future. BTC is an underused commodity, that's all. It doesn't return anything in and of itself. However it's a better commodity than most commodities, so there's an opportunity right now. I don't think it will last forever. abenjami, and OILERMAN 2 Link to post Share on other sites More sharing options...
pat Posted February 21, 2021 Report Share Posted February 21, 2021 8 hours ago, OILERMAN said: Is there a way to short Bitcoin? No one trusts anyone to cover a potentially 40000% loss if BTC spikes again. OILERMAN 1 Link to post Share on other sites More sharing options...
Supdawg Posted February 21, 2021 Report Share Posted February 21, 2021 I believe he's talking about lending it out and getting interest. Link to post Share on other sites More sharing options...
pat Posted February 21, 2021 Report Share Posted February 21, 2021 2 minutes ago, Supdawg said: I believe he's talking about lending it out and getting interest. Yes, but the risk is just too high. Loan someone $100 of BTC, they spend it, it spikes, and now they owe you $4m of BTC. How would you rate someone's credit for that kind of spread? Link to post Share on other sites More sharing options...
Supdawg Posted February 21, 2021 Report Share Posted February 21, 2021 1 minute ago, patsplat said: Yes, but the risk is just too high. Loan someone $100 of BTC, they spend it, it spikes, and now they owe you $4m of BTC. How would you rate someone's credit for that kind of spread? BTC lending is overcollateralized typically 2X. To borrow 1 BTC, you would need to hold 2 BTC in escrow. If the price dips 50%, a margin call is made and if you don't post, you're liquidated. It's not traditional fractional reserve. pat 1 Link to post Share on other sites More sharing options...
Supdawg Posted February 21, 2021 Report Share Posted February 21, 2021 (edited) Right now, lending is paying big yield because there is a huge spread via arbitrage on the futures market. This can basically be a risk free 20% and is getting very popular. BTC as collateral will be absolutely pristine in the future. Many people believe that you should be able to borrow against your bitcoin (and never sell) infinity as the price appreciation goes up faster than the interest you pay. As soon as the price goes up, you can borrow more money as your LTV goes down. The upside is you never incur taxes if you borrow vs cashing out. There might be a world where no one will sell you their BTC. This is exactly what Saylor is doing with Microstrategy. Edited February 21, 2021 by Supdawg Link to post Share on other sites More sharing options...
pat Posted February 21, 2021 Report Share Posted February 21, 2021 @OILERMAN I am starting to feel uncomfortable OILERMAN, and Supdawg 1 1 Link to post Share on other sites More sharing options...
Supdawg Posted February 21, 2021 Report Share Posted February 21, 2021 Just now, patsplat said: @OILERMAN I am starting to feel uncomfortable The funny thing... Is these companies are doing the same thing with their stocks. They are refinancing their debt and borrowing more money to do stock buy backs. What Saylor is doing is the equivalent of a stock buy back, but 10X better. Link to post Share on other sites More sharing options...
pat Posted February 21, 2021 Report Share Posted February 21, 2021 2 minutes ago, Supdawg said: The funny thing... Is these companies are doing the same thing with their stocks. They are refinancing their debt and borrowing more money to do stock buy backs. What Saylor is doing is the equivalent of a stock buy back, but 10X better. It is crazy how much leverage there can be in the markets Link to post Share on other sites More sharing options...
Supdawg Posted February 21, 2021 Report Share Posted February 21, 2021 6 minutes ago, patsplat said: It is crazy how much leverage there can be in the markets This is why the Fed has to be careful or the entire market can spiral out of control. Link to post Share on other sites More sharing options...
abenjami Posted February 21, 2021 Report Share Posted February 21, 2021 It's already out of control and it has been for quite some time. Link to post Share on other sites More sharing options...
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