Excellent... As a cyber security business owner, I'd like a little more detail on the security concerns, but they sound reasonable on the surface... BUT, if they hold their coins on Coinbase and NOT via a cold wallet, this really bothers me: "To be perfectly clear: these digital assets are owned by GBTC and GBTC alone."
This sounds like a lawyerly way to talk around counterparty risk. With FTX we are about to find out for sure whether someone's coins on a public exchange can be confiscated by the Bankruptcy court to pay creditors. This is exactly the possibility Coinbase warned about in a recent filing. If a public exchange enters bankruptcy and the coins "owned" by GBTC (or anyone else) can be confiscated in favor of secured creditors, then there is counterparty risk and a public exchange is no different than a legacy bank...
If they truly have access to the bitcoins and can buy GBTC shares at a 50% discount, would management not buy back massive amounts of "cheap" GBTC and sell off the equivalent "expensive" BTC and greatly increase NAV to the remaining shares?
you all are so funny how everyone is scared if coins aren't held in cold storage but custody at a firm like coinbase. You all know every wall street financial firm on wall street in small print says your stocks held at there firm can be locked up, freeze withdrawals or lose all of it if firm goes insolvent. We are in a risky business so funny how all of a sudden when tough times come every one wants to blame something else. News flash It is not an American right to always have your investment portfolio go up. Suck it up all you cry babies take some responsibility weather this storm and be in position for the best buying opportunity AGAIN in markets
I just found out about Staking. This Staking seems to go completely against Bitcoin's Scarcity theme. The creator of Bitcoin wanted it to be scarce. Now we have Fiat Bitcoin.
Agree with the overall sentiment. I suspect GBTC is solvent, but I find their resistance to Proof of Reserve (Proof of Trust?) unsettling, especially the argument. Public Keys do not need to be reused...additionally, I would trust that GBTC is using some type of multisig (multiple 'keys' that need to be used together to move bitcoin from an address) and has additional safeguards against threats to their trust. I would have preferred if they had addressed their security opinion regarding exposing public keys in proof of reserve and indicated they preferred to guard against potential zero day exploits, no matter how unlikely. At least in that case they would have been recognizing how 'fringe' (sorry QTR) their statement sounded. In any case, I have a feeling that we have quickly crashed into a 'everybody is lying and nobody is solvent' paranoia for the time being. There may be opportunity here, but manage exposure.
No -- you cannot hide what you own on the blockchain. It is literally impossible. Anybody that wants to can easily find out how much Grayscale has if they do enough sleuthing.
This has done nothing to garner my confidence in crypto currency. Seems like a lot of sleazy and potentially sleezy actors lurking around this medium…. Just sayin.. there is something very comforting in having american gold eagles where i can go look at them and hold them once in a while 😎
we will find out in coming days but this is a crowd mentality most are just going along with what a few are saying. Grayscale executives coming out and saying the things they have said if not true tells me they expose themselves to making false claims and severe punishment if not jail by regulators. so i see this as over blown fear that maybe well justified but an opportunity
Given the times, I found and believe this is alternative to PayPal. Application is downloadable, and it can be adapted into Substack as a custom button - link to a png/jpg (inspect element achieves this).
The instructions and links are there. They will contact you as well; or they did for me.
They are US Based. The Terms of Service to my non-legal eye are not onerous or punitive towards creators or business. They have Subscribe Star and Shopify also.
It's worth noting that the 2% management fee is based on NAV. In effect the management fee is nearer 4%
Excellent... As a cyber security business owner, I'd like a little more detail on the security concerns, but they sound reasonable on the surface... BUT, if they hold their coins on Coinbase and NOT via a cold wallet, this really bothers me: "To be perfectly clear: these digital assets are owned by GBTC and GBTC alone."
This sounds like a lawyerly way to talk around counterparty risk. With FTX we are about to find out for sure whether someone's coins on a public exchange can be confiscated by the Bankruptcy court to pay creditors. This is exactly the possibility Coinbase warned about in a recent filing. If a public exchange enters bankruptcy and the coins "owned" by GBTC (or anyone else) can be confiscated in favor of secured creditors, then there is counterparty risk and a public exchange is no different than a legacy bank...
All of this is building my case for the Digital Liberties Amendment. (https://digitallibertiesamendment.com)
QTR: Shamless plug: I am working on a post about this... Cross post? Have me on your podcast?
If they truly have access to the bitcoins and can buy GBTC shares at a 50% discount, would management not buy back massive amounts of "cheap" GBTC and sell off the equivalent "expensive" BTC and greatly increase NAV to the remaining shares?
you all are so funny how everyone is scared if coins aren't held in cold storage but custody at a firm like coinbase. You all know every wall street financial firm on wall street in small print says your stocks held at there firm can be locked up, freeze withdrawals or lose all of it if firm goes insolvent. We are in a risky business so funny how all of a sudden when tough times come every one wants to blame something else. News flash It is not an American right to always have your investment portfolio go up. Suck it up all you cry babies take some responsibility weather this storm and be in position for the best buying opportunity AGAIN in markets
I just found out about Staking. This Staking seems to go completely against Bitcoin's Scarcity theme. The creator of Bitcoin wanted it to be scarce. Now we have Fiat Bitcoin.
Agree with the overall sentiment. I suspect GBTC is solvent, but I find their resistance to Proof of Reserve (Proof of Trust?) unsettling, especially the argument. Public Keys do not need to be reused...additionally, I would trust that GBTC is using some type of multisig (multiple 'keys' that need to be used together to move bitcoin from an address) and has additional safeguards against threats to their trust. I would have preferred if they had addressed their security opinion regarding exposing public keys in proof of reserve and indicated they preferred to guard against potential zero day exploits, no matter how unlikely. At least in that case they would have been recognizing how 'fringe' (sorry QTR) their statement sounded. In any case, I have a feeling that we have quickly crashed into a 'everybody is lying and nobody is solvent' paranoia for the time being. There may be opportunity here, but manage exposure.
In Crypto-land they have the whole necessary vocabulary
like "mint", "fund", "holdings", "backed by assets",
"custody", “exchange”, and "market value"
to solve this crisis with relative ease.
—
In the Harry Potter world
somebody would have come up
with the proper "abracadabra" by now.
What’s the holdup, Crypto?
—
And, yes, I know how the blockchain works.
Tether is sketch AF. I guess Chris has been saying this for a while. https://www.revolver.news/2022/11/sam-bankman-fried-ftx-on-steroids-is-cryptocurrency-tether-joe-biden-crypto-bcci/
No -- you cannot hide what you own on the blockchain. It is literally impossible. Anybody that wants to can easily find out how much Grayscale has if they do enough sleuthing.
This has done nothing to garner my confidence in crypto currency. Seems like a lot of sleazy and potentially sleezy actors lurking around this medium…. Just sayin.. there is something very comforting in having american gold eagles where i can go look at them and hold them once in a while 😎
we will find out in coming days but this is a crowd mentality most are just going along with what a few are saying. Grayscale executives coming out and saying the things they have said if not true tells me they expose themselves to making false claims and severe punishment if not jail by regulators. so i see this as over blown fear that maybe well justified but an opportunity
This is why I am short GBTC and COIN, I smell the big shit sandwich in the microwave
https://jasonpowers.substack.com/p/dropp-test-payment-app
Given the times, I found and believe this is alternative to PayPal. Application is downloadable, and it can be adapted into Substack as a custom button - link to a png/jpg (inspect element achieves this).
The instructions and links are there. They will contact you as well; or they did for me.
They are US Based. The Terms of Service to my non-legal eye are not onerous or punitive towards creators or business. They have Subscribe Star and Shopify also.
Check it out.
Need Proof of Reserves
misleading headline
2 trillion in options expired today. A huge % of them OTM puts. Put/call ratio spiked to 1.45 on Thursday. Level last seen in, oh, 2001 and 2007.
Limit down Monday incoming?