How to earn 21% risk free on USD

ScroogeMcDuck

ScroogeMcDuck

Step 1: convert it to spot bitcoin
Step 2: convince the CME to let you use the bitcoin as collateral against short bitcoin futures
Step 3. short February bitcoin futures
 
ScroogeMcDuck said:
Step 1: convert it to spot bitcoin
Step 2: convince the CME to let you use the bitcoin as collateral against short bitcoin futures
Step 3. short February bitcoin futures
More...

I don't think it works that way. You cannot use BTC as collateral against BTC futures, since BTC is not currency?

A good bet would be to take a gamble and short BTC futures. But that is bad, because it's being pumped. So better to go long on BTC, and HODL. It's working well for them!
 
Tradestation allows one to buy and custody BTC with them. Doesnt count as margins though but still, makes it easier to send cash back and forth between the crypto and the futures account.
 
Many have been doing this trade for a long time, short GBTC and long futures.

But I don't think retail can short GBTC.

Read up on Kuppy, he's been doing it a lot. Mind you Kuppy seems to be one of those guys that always makes big money on his picks and never seems to lose (or if he does it's a penny here and there).
 
ScroogeMcDuck said:
Correct, it's better to just hodl spot bitcoin. USD is a riskier asset with the fed expanding its supply by 35% in a year.
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From newscientist.com in December 2018: "What began as an interesting experiment has morphed into an environmental disaster. It is estimated that running the bitcoin network now consumes 45.5 terawatt-hours per year of electricity – enough to power more than 4 million homes in the US".

When Bitcoin becomes illegal, its price will be close to 0 and the future price should follow in theory.

Buying bitcoins means burning a lot of energy for greed: no way.
 
betcashrun said:
When Bitcoin becomes illegal, its price will be close to 0 and the future price should follow in theory.
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Any moment, I tell you, any moment it's going to happen, Bitcoin will be banned, you'll see, just wait, it's going to happen, the big day is coming, hold on, give it time, and so on and so on.

As far as banning goes. Who bans it? Everyone country at the same time or just one or two here and there? If just a few ban it, and it continues to work as planned, won't the other countries be at an advantage? Quite possibly...

As a very wise man once said, you have two choices with Bitcoin -

1. Start to understand it, or
2. Dismiss it

Choose wisely.

As far as those choosing point 2, time hasn't been kind to them over the last 12 years and counting...
 
BTC was born illegal, and its crowd doesn't really care.
If I only kept my first BTC's I bought for trading fun on the illegal shut down exchange btc-e 9 years ago...

I heard Deribit only accepts crypto as margin collateral, and offers btc futures and options. No need to convince the CME.
 
I hold other cryptos basket on paper cold wallet, not BTC unfortunately.
But I just went long Riot, with a collar on it as protection.

S&P and DJ launching their crypto index soon.
 
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