Search found 465 matches

by bitcoininthevp
Wed Mar 10, 2021 5:45 pm
Forum: Cash
Topic: Large returns on cash taking advantage of bitcoin's contango
Replies: 59
Views: 13057

Re: Large returns on cash taking advantage of bitcoin's contango

Wait, but why isnt everyone doing this? The same reason you are reading this post with extreme skepticism is the same reason this arbitrage opportunity continues to persist. So maybe use some small portion of that large cash position in your PP to earn sick margins? b, Is this a loophole that is go...
by bitcoininthevp
Wed Mar 10, 2021 1:47 pm
Forum: Cash
Topic: Large returns on cash taking advantage of bitcoin's contango
Replies: 59
Views: 13057

Re: Large returns on cash taking advantage of bitcoin's contango

In the buying bitcoin and selling the future scenario, I wasn't clear, are one of you actually doing this currently or this is all on paper? No comment personally, but does the proposed trade at least make sense to you? https://www.investopedia.com/terms/c/cashandcarrytransaction.asp Yes, profiting...
by bitcoininthevp
Wed Mar 10, 2021 1:34 pm
Forum: Cash
Topic: Large returns on cash taking advantage of bitcoin's contango
Replies: 59
Views: 13057

Re: Large returns on cash taking advantage of bitcoin's contango

I understand the concept of a covered call, but I don't know the mechanics of options trading. That's my "why isn't everyone doing this." There is no option involved in this trade. Simple cash and carry strategy. I'm open to being schooled, but AFAIK what you described is a basic covered ...
by bitcoininthevp
Wed Mar 10, 2021 1:21 pm
Forum: Cash
Topic: Large returns on cash taking advantage of bitcoin's contango
Replies: 59
Views: 13057

Re: Large returns on cash taking advantage of bitcoin's contango

Fascinating! I have have never bought or sold futures of anything , and I don't plan to. I'd love to see a report from anyone who gives this a shot. Meanwhile, very happy to have let the bulk of my BTC ride. If you have any kind of variable rate loan + an unlevered PP, then you should consider usin...
by bitcoininthevp
Wed Mar 10, 2021 1:18 pm
Forum: Cash
Topic: Large returns on cash taking advantage of bitcoin's contango
Replies: 59
Views: 13057

Re: Large returns on cash taking advantage of bitcoin's contango

I understand the concept of a covered call, but I don't know the mechanics of options trading. That's my "why isn't everyone doing this." There is no option involved in this trade. Simple cash and carry strategy. Im thinking it might be a lack of bitcoin understanding by the finance folks...
by bitcoininthevp
Wed Mar 10, 2021 1:15 pm
Forum: Permanent Portfolio Discussion
Topic: Bitcoin as a complement or alternative to gold in the PP
Replies: 178
Views: 58444

Re: Bitcoin as a complement or alternative to gold in the PP

This is something that has bothered me as well about BTC as a functional currency. There is no inflation or fractional reserve. I hear gold supply increases at around the rate of population increase. And it can be fractionalized by modifying its value to a currency. New gold is mined based on the v...
by bitcoininthevp
Wed Mar 10, 2021 11:57 am
Forum: Permanent Portfolio Discussion
Topic: Bitcoin as a complement or alternative to gold in the PP
Replies: 178
Views: 58444

Re: Bitcoin as a complement or alternative to gold in the PP

My big problem with Bitcoin is mostly with the hype and exagerrated pessimistic and mistaken claims regarding our monetary system that surround it. It comes across a lot as very cultish.... to a degree at times which makes fervent gold bugs look entirely sane and rational. There is also a lot of mo...
by bitcoininthevp
Wed Mar 10, 2021 11:17 am
Forum: Cash
Topic: Large returns on cash taking advantage of bitcoin's contango
Replies: 59
Views: 13057

Re: Large returns on cash taking advantage of bitcoin's contango

The real risk is what happened with gold spot and futures prices in march where futures prices did not drop as much as spot prices but this is less likely to happen because the BRR is actually based on the price of BTC traded on the exchanges. Not really* an issue if the prices between spot and fut...
by bitcoininthevp
Wed Mar 10, 2021 11:14 am
Forum: Cash
Topic: Large returns on cash taking advantage of bitcoin's contango
Replies: 59
Views: 13057

Re: Large returns on cash taking advantage of bitcoin's contango

Coinbase fees are .5% for the lowest denomination ($10k or under).
https://help.coinbase.com/en/pro/tradin ... -fees/fees

Much less for even modestly higher volumes.
by bitcoininthevp
Wed Mar 10, 2021 10:55 am
Forum: Permanent Portfolio Discussion
Topic: Bitcoin as a complement or alternative to gold in the PP
Replies: 178
Views: 58444

Re: Bitcoin as a complement or alternative to gold in the PP

A lot of you guys are focusing on issues that are no longer really debatable in crypto and arguments from 2017 that the market has already parsed and deemed as no longer presenting risks etc. Keep in mind, folks in this forum are primed for bitcoin, but not necessarily familiar with the space or al...
by bitcoininthevp
Wed Mar 10, 2021 10:53 am
Forum: Permanent Portfolio Discussion
Topic: Bitcoin as a complement or alternative to gold in the PP
Replies: 178
Views: 58444

Re: Bitcoin as a complement or alternative to gold in the PP

Countries can ban mining pools which will force miners to compete themselves pricing out smaller miners and causing mining to be more centralized. The mining pool itself doesn’t really require a physical presence, unlike the miners themselves which require machine space, machines, power supplies, b...
by bitcoininthevp
Wed Mar 10, 2021 10:51 am
Forum: Permanent Portfolio Discussion
Topic: Bitcoin as a complement or alternative to gold in the PP
Replies: 178
Views: 58444

Re: Bitcoin as a complement or alternative to gold in the PP

Even though I have a little in the game now. I would love to see a mining pool take full control of bitcoin just for the fireworks if nothing else. <pedant> A mining pool has a collection of independent miners (individuals, companies) within it, contributing. If the pool tried shenanigans, the mine...
by bitcoininthevp
Wed Mar 10, 2021 10:49 am
Forum: Permanent Portfolio Discussion
Topic: Bitcoin as a complement or alternative to gold in the PP
Replies: 178
Views: 58444

Re: Bitcoin as a complement or alternative to gold in the PP

Interestingly, I think Tesla is the crypto of stocks. There is so much hype and big far reaching world shattering promises that surround it that it's hard to place a value on it. It's run-up over the last year has been insane...unfortunately for tesla it's easier to place value metrics on it and it...
by bitcoininthevp
Wed Mar 10, 2021 10:01 am
Forum: Permanent Portfolio Discussion
Topic: Bitcoin as a complement or alternative to gold in the PP
Replies: 178
Views: 58444

Re: Bitcoin as a complement or alternative to gold in the PP

One way to look at Bitcoin and its (decentralized as well as centralized) ecosystem as growing and not DONE yet. One of the things that people don't realize in retrospect looking at the early internet today, it appears as if it was the perfect protocol and it never really had that much competition. ...
by bitcoininthevp
Wed Mar 10, 2021 9:40 am
Forum: Cash
Topic: Large returns on cash taking advantage of bitcoin's contango
Replies: 59
Views: 13057

Re: Large returns on cash taking advantage of bitcoin's contango

The futures market for bitcoin is in contango . It almost always is. See here for the futures price of a bitcoin in September. https://www. deribit .com/main#/futures?tab=BTC-24SEP21 Wait, but why the quotes around "risk free". There is some risk of course: - You could lose your bitcoin s...
by bitcoininthevp
Wed Mar 10, 2021 9:38 am
Forum: Permanent Portfolio Discussion
Topic: Bitcoin as a complement or alternative to gold in the PP
Replies: 178
Views: 58444

Re: Bitcoin as a complement or alternative to gold in the PP

I think some of the concerns are bitcoin as currency vs money vs asset. Im personally thinking of bitcoin as an asset (and money in the store of value sense). I think of it like a digital gold. Efficiency....namely it is incrediblely inefficient... Kwh per transaction is absurd. How many Kwh per tra...
by bitcoininthevp
Wed Mar 10, 2021 8:08 am
Forum: Cash
Topic: Large returns on cash taking advantage of bitcoin's contango
Replies: 59
Views: 13057

Large returns on cash taking advantage of bitcoin's contango

The futures market for bitcoin is in contango . It almost always is. See here for the futures price of a bitcoin in September. https://www.deribit.com/main#/futures?tab=BTC-24SEP21 Currently the futures premium is 22% annualized. That means while a bitcoin today is worth $55,000 a bitcoin in Septemb...
by bitcoininthevp
Wed Mar 10, 2021 7:57 am
Forum: Permanent Portfolio Discussion
Topic: Bitcoin as a complement or alternative to gold in the PP
Replies: 178
Views: 58444

Re: Bitcoin as a complement or alternative to gold in the PP

Bitcoin due to its design and nature is a non starter as a currency. Can you elaborate here? If something is going to replace our system it's going to have to be a new arrival or one of the lesser known coins...of course thats all assuming governments will stand back and let that happen...which the...
by bitcoininthevp
Mon Mar 08, 2021 12:57 pm
Forum: Permanent Portfolio Discussion
Topic: COVID Stimulus Passes
Replies: 5
Views: 1715

Re: COVID Stimulus Passes

whatchamacallit wrote: Sat Mar 06, 2021 3:36 pm If they could some how just send out restaurant and hotel vouchers it would stimulate economy more.
Fedcoin or whatever digital currency they are working on will allow just this. You can only spend these $100 in your account on restaurants.
by bitcoininthevp
Mon Mar 08, 2021 12:49 pm
Forum: Variable Portfolio Discussion
Topic: I think it’s time to move into crypto
Replies: 160
Views: 87419

Re: I think it’s time to move into crypto

If BTC has no use as a collateral asset, then it's usefulness as a store of value is limited. There is no requirement that bitcoin can only be used on blockchains. Bitcoin is acting as collateral to get USD loans for example (Unchained Capital). It is also used as collateral for trading/exchanges. ...
by bitcoininthevp
Sat Mar 06, 2021 6:50 am
Forum: Variable Portfolio Discussion
Topic: I think it’s time to move into crypto
Replies: 160
Views: 87419

Re: I think it’s time to move into crypto

Came across this. Not sure if it’s useful on your quest.

https://www.visionhill.com/indices
by bitcoininthevp
Fri Mar 05, 2021 11:50 am
Forum: Variable Portfolio Discussion
Topic: I think it’s time to move into crypto
Replies: 160
Views: 87419

Re: I think it’s time to move into crypto

I see vincent_c as somewhat new to the space and, yes, my intent was to shed my historical experiences light on his outlook. This is not a fair statement for a couple reasons. Regardless of how long someone has been in a space, can you focus on the arguments rather than anything personal? Regarding...
by bitcoininthevp
Fri Mar 05, 2021 11:32 am
Forum: Variable Portfolio Discussion
Topic: I think it’s time to move into crypto
Replies: 160
Views: 87419

Re: I think it’s time to move into crypto

I've been following this site passively with no intention of contributing, but the recent discussions of Bitcoin have given me a particular itch that I couldn't help but scratch. Bitcoininthevp has been a great resource, but there are some things that I feel need to be addressed, so I will do that....
by bitcoininthevp
Fri Mar 05, 2021 10:52 am
Forum: Permanent Portfolio Discussion
Topic: Bitcoin as a complement or alternative to gold in the PP
Replies: 178
Views: 58444

Re: Bitcoin as a complement or alternative to gold in the PP

Where are you checking premium? Article thinks loss of premium is bullish. https://finance.yahoo.com/amphtml/news/grayscale-discount-might-signal-start-144120660.html You can see here (I think daily, not real time): https://ycharts.com/companies/GBTC/discount_or_premium_to_nav Or here: https://docs...
by bitcoininthevp
Fri Mar 05, 2021 10:13 am
Forum: Permanent Portfolio Discussion
Topic: Bitcoin as a complement or alternative to gold in the PP
Replies: 178
Views: 58444

Re: Bitcoin as a complement or alternative to gold in the PP

GBTC is currently at negative premium, about -8%. So "could" be a good time to buy. Or the days of 20,30,40% premium are over and end of an era. I bought it right before it lost fat premium. Now it keeps eroding. How it could be 40.5 when BTC is at 48k ? Arrrh :-( As long as GBTC and Gray...