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The Bubbly Bitcoin Thread -- Merged Threads


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17 minutes ago, Warlord said:

Don't get too excited @Buffer Bear

 

 

Yeah, sell BTC and run to Gold becasue that's flying.............wait what, ok , falling less quickly, lol.  but then it never hardly made any gainz to start with, 36% from covid March 2020 dip to july 2020 highs, then just been dumping in price ever since. 

I pitty the asset that cant make at least a 2 x in a pandemic. 

 

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So, in my mind, what has changed… BIS requiring 100% capital requirements against Bitcoin makes it difficult for any bank to use it as a tradeable commodity. For every 10 dollars their customers trade in Bitcoin on margin, they could have traded 100 dollars in most other assets. 
 

since the BIS announcement of 1 for 1 BTC capital requirements, the price has tanked.

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1 hour ago, mbga9pgf said:

So, in my mind, what has changed… BIS requiring 100% capital requirements against Bitcoin makes it difficult for any bank to use it as a tradeable commodity. For every 10 dollars their customers trade in Bitcoin on margin, they could have traded 100 dollars in most other assets. 
 

since the BIS announcement of 1 for 1 BTC capital requirements, the price has tanked.

Then they should do what Saylor is doing with Microstrategy, don’t trade it, just buy and hold it for long term. 

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6 hours ago, Buffer Bear said:

Not affected but I do wonder who will follow.

 

Was a little frustrated on Monday, as it took nearly a day to transfer funds to Kraken.  Anyway, $34k is not tempting enough given I had been buying the dip during 'Elon's volatility'. Happy to play the waiting game.  Sorry @warlord et al.

 

The ban is ineffective, you can just use etoro which is an FCA regulated investment platform, you can fund it using paypal so the bank has no way of stopping you getting the money there. Plus the fact that paypal are going to allow you buy BTC directly in the UK at some point anyway. At the end of the day what the UK dinosaur institutions choose to do is irrelevant.

Edited by goldbug9999
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1 hour ago, mbga9pgf said:

So, in my mind, what has changed… BIS requiring 100% capital requirements against Bitcoin makes it difficult for any bank to use it as a tradeable commodity. For every 10 dollars their customers trade in Bitcoin on margin, they could have traded 100 dollars in most other assets. 
 

since the BIS announcement of 1 for 1 BTC capital requirements, the price has tanked.

It makes no odds what any regulatory body says, bitcoin is a bearer asset and so therefore already implicitly requires a 100% capital ratio. Anyway welcome to the thread and way to go ploughing in with some complete shite as an opener, but hey you can only get better right.

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2 hours ago, mbga9pgf said:

So, in my mind, what has changed… BIS requiring 100% capital requirements against Bitcoin makes it difficult for any bank to use it as a tradeable commodity. For every 10 dollars their customers trade in Bitcoin on margin, they could have traded 100 dollars in most other assets. 
 

since the BIS announcement of 1 for 1 BTC capital requirements, the price has tanked.

Do you have a reputable link?

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2 hours ago, goldbug9999 said:

The ban is ineffective, you can just use etoro which is an FCA regulated investment platform, you can fund it using paypal so the bank has no way of stopping you getting the money there. Plus the fact that paypal are going to allow you buy BTC directly in the UK at some point anyway. At the end of the day what the UK dinosaur institutions choose to do is irrelevant.

 Regulators can stop any financial transaction it wants any time. If it wants to stop eToto accepting paypal transfer,  they will comply.  Paypal blocks a countries citizens using crypto.. no problem.

Being regulated means permission to do a very explicit function, it's not a Global do what the fook you want.

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21 hours ago, markyh said:

MicroStrategy have been buying Bitcoin with debt issued, and not to be repaid until several years in the future, after 2 halvings the last $1b.  No leverage involved. As long as their lenders get their 6% interest and capital back in 2028 they will be fine and can just sit on short term losses. 

Borrowing money to invest = leverage

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22 minutes ago, markyh said:

1 to 1 Dumbass,  they are not taking 20 x / 50 x / 100x long positions on Bitmex FFS. 

I appreciate they are not trading derivatives; I'm just pointing out that borrowing money to invest/speculate is leverage.

I'm not sure why you felt the need to be rude.

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38 minutes ago, markyh said:

1 to 1 Dumbass,  they are not taking 20 x / 50 x / 100x long positions on Bitmex FFS. 

Yes they are using leverage. They do not have enough cash to own the amount of BTC they now own, therefore it is not 1 to 1.

Edited by dugsbody
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1 hour ago, dugsbody said:

Yes they are using leverage. They do not have enough cash to own the amount of BTC they now own, therefore it is not 1 to 1.

Last they reported their average buy in price for BTC was $26k and the market price is $34k, so the value of all their BTC is  greater than the cost of their loans. In theory they could sell most of their BTC, clear all loans, and still have a net positive position in btc. So they ain’t leveraged, yet. 

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1 hour ago, markyh said:

Last they reported their average buy in price for BTC was $26k and the market price is $34k, so the value of all their BTC is  greater than the cost of their loans. In theory they could sell most of their BTC, clear all loans, and still have a net positive position in btc. So they ain’t leveraged, yet. 

Selling debt to buy assets you could not have otherwise bought is leverage. They are leveraged. If bitcoin goes against them, the leverage will be the killer. If it goes for them, they make outsized gains. That is what leverage does.

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