On first glance that sounds like a great way to gain exposure to the cryptocurrency industry via more traditional investment vehicles. One doesn't have to go through Coinbase, Poloniex, Bittrex, or any one of the large number of exchanges out there that seem to get hacked or have security issues almost weekly. GBTC is otc markets gbtc bitcoin Bitcoin investment trust, created init was the first publicly traded investment vehicle of it's kind. It buys and holds Bitcoins giving investors the option of buying the fund instead of the buying the underlying asset directly.
Since it is a trust, purchases and sales can only happen 1 time per day, at the close. Not at market prices during the day like a stock. The problem with buying GBTC has nothing to do with it's underlying fundamentals, but instead, the problem lies solely with its price.
There are likely many reasons for this, but the big take away should be that GBTC is trading at an unsustainable otc markets gbtc bitcoin currently. The more likely scenario will be that when the popularity around Bitcoin dies down or when more similar investment vehicles come to market the price will drift back towards it's actual net asset value. That means that anyone buying GBTC currently is buying an asset that is trading for 2X its market value.
I guess, from here, it would be very resourceful for us all to become more aware of ways to ramp up onto the cryto-currency train. Do you have any quick and fairly easy solutions to that. Come to Woldwide bittrex pump group The power of the bittrex forces is strong you can get good results this place is real. Join Telegram channels http: I recommend to stay with Crypto Currencies with the Highest Volume, that prevents Wales from pumping or dumping the price.
Compare Crypto Volume here: Check out my Listing here: GBTC would crash hard short term. Still, for people with a strong hand, thinking of the long term, it still is a good option as long as they don't panic sell in the next drop.
This is why I say so: I was not aware that such big price differences were even possible in the free market. I always assumed that margin trading bots would close those inefficiencies within fractions of a second. Is there any information out there why this find is so extremely overvalued?
Is it because "old-school" traders don't understand crypto? I hardly believe that, it is not that difficult xD. Maybe it has to do with the way the fund is only traded in market close, but I still can't wrap my mind around how this would change anything.
If someone can help me understand this, feel free to comment. Thanks for sharing your thoughts in the GBTC investment danger Thanks for sending out the warnings. I think for most it is easier to buy this trust and possibly safer in their eyes then to go otc markets gbtc bitcoin and create a coinbase account etc, and buy the asset directly. I can't wait till there is an ETF for this stuff OTC markets have less liquidity and participants than a main Stock Exchange. There are administration fees.
The high demand by the limited players on the OTC otc markets gbtc bitcoin pushes the prices to a premium. When it becomes an ETF this will get balanced by ETF creations and cancellations redemptions otc markets gbtc bitcoin and with the underlying asset, Bitcoin. If you are an investor that need to got through a regulated market, or a regulated asset manager this is one of the few options.
Yes and when these others become available, I would imagine the premium will be sucked right out of it. That is kind of my point in all of this. At this stage I would say the premium is much more likely to decrease from these levels going forward than it is to increase I hold the following: I don't trust anyone but myself to manage it, but it eats up a lot of time.
Looks good, just be careful with any of the OTC crypto related stocks. It great opportunity don't lose it, on bitmex otc markets gbtc bitcoin can trade bitcoin contract features a high leverage of up to x. In general it's also high risk to invest in cryptos, and i bet as long as bitcoin and other cryptos are going for the moon - then some people are willing to take a chance with GBTC. Buying cryptos and stock can never be otc markets gbtc bitcoin - so otc markets gbtc bitcoin advice is, don't ever invest more than you are willing to loose.
High risk, potential high reward: But anyways great article, and it good with some insight - thanks. Thanks for giving otc markets gbtc bitcoin heads-up about it. I'm gonna try to investigate it myself but your post surely delivered the point. A few days ago, I read one of the posts on Steemit that says GBTC's price will determine how much Bitcoin price will increase in the future. Yea was reading on this and wondering myself, why you wouldn't want to own BTC yourself.
Pay fees for others to hold it for you and charge you more on the price. Thank you for the heads up. I thought about getting into that a while back since they take IRA funds. I passed at the time and am glad I did. I guess all the bitcoin buzz enabled them to cash in. I bet their influx of buyers is huge of late. Great post jrcornel I agree with what you write, it's very interesting, thanks for sharing that information, we must support ourselves as a community, I appreciate it if you I would give me a look at my last post and give me your opinion, Cheers!
Because there are many many companies on OTC that say many many things, some more true than others I think any of us that are in it is because it is accessible through our retirement accounts. That's the biggest positive. And you can shovel in an unlimited amount of money as opposed to the exchange "caps". For example, one share worth. Then the premium shrinks, but the value of the share remains.
Not a bad investment, per say, just need to be aware. Yes but for those that are looking for an asset that is highly correlated with the price of Bitcoin, this isn't it Short term, perhaps, but you shouldn't invest in Otc markets gbtc bitcoin for a quick flip. It's designed for those who believe BTC has a long-term future. Once the price of Bitcoin is more aligned with the share of GBTC, then it won't matter there will always be a premium for ease of purchase, management, etc.
I agree with your points on the premium decreasing because of competition and other factors. I spoke about that otc markets gbtc bitcoin the video too.
I think I will wait till most of that premium is sucked out I'm new to Crytocurrency, as far as I understood it, people are really up to help others. By posts like yours helping us a lot. There is also the corporate tax uncertainty which would in worst case scenario create otc markets gbtc bitcoin bigger value haircut - and potentially unexpected tax forms each winter: I just posted on this point recently.
I am getting so much better at understanding these posts, it's pretty exciting. Recently I asked my husband to sit otc markets gbtc bitcoin and explain things to me and he gave me great resources to further my education.
And today I posted, well technically it's my second crypto post ever, but this is the first one in which I talk about strategy I would be really curious on your take, if you get an opportunity to read it: Thanks again for your great post and the heads up just pumping them out post after post.
Good for you always great info. Very useful and insightful information. Anything with an MCAP 2x its assets is in my opinion a highly risky investment and thus not worth risking capital for. Otc markets gbtc bitcoin you for bringing this to my attention.
I will be informing family members who are invested in this of the danger ASAP. Thank you for the information. I certainly to trade in poloniex as a otc markets gbtc bitcoin trader and also do practice in bittrex.
Hope no investor will lose their money they earned by hard work. Loads of thanks because I thoughts were opposite. I thought it would be a great opportunity to invest in a company which is into cryptocurrencies but your article opened my eyes. You have saved many people from investing in a wrong stocks. Just like you said, I thought share market is more reliable than cryptocurrencies and I should invest there.
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Haha how long you been holding on to that one?
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