Let me pitch you guys the best upcoming trade of this century related to the BlackRock Bitcoin ETF:
This is not just a strategy; it's a gold rush in the digital era exploiting tradfi to earn yourself to (close to) free BTC.
A brokerage account is required.
I know most people in crypto don't have brokerage accounts, but you will need one for this strategy.
Recommended brokerage: Interactive Brokers.
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Step 1: Purchase the BlackRock Bitcoin ETF. This will become collateral.
When holding this ETF on your balance sheet as collateral, it enables you to borrow against other assets.
Step 2: Borrow in the most depreciating currencies using the BlackRock Bitcoin ETF as collateral.
You may choose between the Japanese Yen (JPY) with negative interest rates for a safer approach
OR
High interest-inflating currencies such as the Turkish Lira (TRY)/Argentine Pesos (ARS) for a riskier move with higher returns, using the Bitcoin ETF as collateral.
Step 3: Swap your currency of choice into USD.
Step 4: Use the USD to buy even more BlackRock Bitcoin ETF.
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Explanation of what we are doing:
The JPY carry trade is already commonly done which involves borrowing JPY and using it to purchase US Treasuries. This is taking it to the next level (with some risk).
We can call this: the Bitcoin Carry Trade.
As currencies such as JPY/TRY/ARS inflate, the borrowed debt will gradually become worthless.
Inflating currencies follow a one-way road to hyperinflation. They never deflate. We are using this to our advantage.
As the price of Bitcoin rises and/or the currencies depreciate, your access to margin increases. You can repeat this process to buy even more Bitcoin.
If you look at the charts of BTC/ARS, BTC/TRY, they are at ATHs despite the price of Bitcoin being down 60% versus USD.
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Risks:
If the borrowed currency appreciates against USD, it could offset gains made by the Bitcoin ETF.
A decline in the value of Bitcoin would reduce returns.
This involves the use of leverage as we are borrowing with collateral, there is a chance you could get margin called.
Considering everything, it is a trade worth taking in my opinion. The odds are with us.
Ask yourself how Nexo is paying 10% on stablecoins while DeFi yields are 1% and short duration US Treasuries are 4.5%.
Meanwhile, every counterparty in the crypto space has blown up…
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How to join:
- Like & RT
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The winner will be picked in a Twitter randomizer in precisely 48 hours!
Let's have a positive March, to get things kicking we are doing a retweet giveaway! 🎁
3 people who RT & Like this tweet will each win $100 in $FTM!
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