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Arbitrage
Arbitrage
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Best Resources on Blockchain

Hey guys, 

Can you share the best resources you know on blockchain, cryptocurrencies, or anything related to the field. It doesn't matter if it costs money or not. Also, what are the best people you follow on Twitter for the space? 
I just need as many resources as possible to do research for a project I am working on. 

Thanks in advance!

 

GBTC Discount Opportunity

In my previous posts from Oct20 about GBTC low premium opportunity:

https://exchange.realvision.com/post/gbtc-low-premium-opportunity-5f7de2b80b23a767be73e3af

and GBTC high Premium Alert from Dec20:

https://exchange.realvision.com/post/gbtc-high-premium-alert-5fde3df4ad1185460f7a3685

I showed you how you can take advantage of the changing premium of GBTC to get more profits out of your bitcoin exposure.

In the last days, GBTC is trading at a discount. Now it make sense to move all of your Bitcoin exposure to GBTC, as it trades at about 5% discount, which will pay for more than 2 years of fees (2% annually). This is a better holding now than buying futures that trade in contango and cost more than 1% a month, to roll over.

You can also just make arbitrage by buying GBTC long and shorting Bitcoin futures, but you need to consider the margin you need for that (I guess your broker will want margin for both sides of the trade).

If you want to calculate the discount, just multiply the Bitcoin price by 0.00094690 which is the current bitcoin holding per GBTC share as of 3/3/21:

You can also check it here:

https://otcnode.com/

Trading at discount is quite rare for GBTC as you can see in this chart from ycharts:

https://ycharts.com/companies/GBTC/discount_or_premium_to_nav

Last thing, when you see an arbitrage you should ask yourself why does it exist.

I believe that accredited investors that bought it at NAV 6 month ago and had to wait 6 month for the lock-up period to end, have made huge amount of profits (4-5X), so they just want to take... (More)

Get a 50K $ mortgage to buy 1 bitcoin for 16 years, stake it to earn the money for the rate. After 16 years walk away with 1 btc.

For a 50K$ mortgage from a bank for 16 years at 1% you pay 3384$ a year;

This is a pessimistic scenario. Most banks right now would give you a 16 years mortgage for LESS than 1% a year. With the 50K dollars you buy 1 #Bitcoin & store it with BlockFi. This will give you 4687.31$ a year;
(Note, if the bitcoin price changes while you are buying, the whole strategy should keep working just using more/less capital)

On this you will probably have to pay taxes. In Italy 26%. This would leave you with 3468$ a year to pay the rate. (Yes, I am aware I am making calculations in dollars while considering Italian taxes. There might be some risk. I assume Euro and Dollar will in the long run depreciate in similar ways. If not BlockFi might be willing to pay in Euro).

After 16 years you get your #BTC back.

If you do it for longer you might even get some money by the side. But you will then be older. If you do it for more you might get more bitcoin at the end, but pay attention that BlockFi is not linear in the way it pays you. If you stake 2 bitcoins, you earn less than if you stake 1 bitcoin. So you will need a longer exposure.

The only risks here seems to be if BlockFi fails in those 16 years. Also the bank will not accept bitcoin as collateral. So this... (More)

IS BITCOIN A GOOD INVESTMENT? WHAT ARE THE MACRO ECONOMIC SCENARIOS IN 2021

If you are interested in macro tailwinds for BTC & crypto assets and what's ahead in 2021, please check my conversation on Hardforking here.

https://www.youtube.com/watch?v=ZuXsAMruYq0&t=895s