If you think Bitcoin can provide passive yield, you don't understand Bitcoin
Let me explain:
(THREAD π)
Let me explain:
(THREAD π)
Don't fall for the bitcoin yield trap
Yield is just a way to help the wealthy hold on to their assets forever
It only works in a system where money can be printed at will and governments can bail everyone out
Yield is just a way to help the wealthy hold on to their assets forever
It only works in a system where money can be printed at will and governments can bail everyone out
Yield on real estate: rental income
Yield on stocks: dividend income
Because of yield, the wealthy NEVER have to give away their assets because they can consume WHILE delaying gratification
Yield on stocks: dividend income
Because of yield, the wealthy NEVER have to give away their assets because they can consume WHILE delaying gratification
Yield is risky
Your tenant needs to make sure they don't burn your house down
The company you invested in needs to make sure they keep innovating
Your tenant needs to make sure they don't burn your house down
The company you invested in needs to make sure they keep innovating
The main reason why stock and real estate prices keep going up is that they are denominated in US Dollars and US Dollars can be printed at will
This takes away the risk of yield on real estate and stocks
No more money printing = no more price increases
This takes away the risk of yield on real estate and stocks
No more money printing = no more price increases
The world will eventually move from US Dollars to Bitcoin as the world reserve asset
More houses can be built
Companies will always issue more shares
More dollars will be printed
There will never be more than 21 million Bitcoin
More houses can be built
Companies will always issue more shares
More dollars will be printed
There will never be more than 21 million Bitcoin
This is why YOU CAN'T EARN YIELD WITH BITCOIN
Bitcoin is MONEY WITH AN INELASTIC SUPPLY
There is a finite number of Bitcoin, meaning sellers will run out AT ALL PRICES
More supply will only be available when the price goes higher
Bitcoin is MONEY WITH AN INELASTIC SUPPLY
There is a finite number of Bitcoin, meaning sellers will run out AT ALL PRICES
More supply will only be available when the price goes higher
We are going to see some crazy moves in price because of options trading
Investors will buy Bitcoin ETF shares to sell covered calls because it feels like free income
This, on its own, will increase Bitcoin's price
Investors will buy Bitcoin ETF shares to sell covered calls because it feels like free income
This, on its own, will increase Bitcoin's price
But not all investors are the same
In my opinion, sophisticated investors will be the ones BUYING the calls because the potential return is βΎοΈ
Retail investors will buy into the scam of selling covered calls
They'll think they can earn passive income AND own Bitcoin forever
In my opinion, sophisticated investors will be the ones BUYING the calls because the potential return is βΎοΈ
Retail investors will buy into the scam of selling covered calls
They'll think they can earn passive income AND own Bitcoin forever
Retail will put trillions into Bitcoin ETFs, thinking they can make some easy money
They'll say
"Let's sell this contract with a strike 20% above the current price
I won't get assigned
It will NEVER go up 100%+ overnight or over a weekend"
And it'll work for a little while
They'll say
"Let's sell this contract with a strike 20% above the current price
I won't get assigned
It will NEVER go up 100%+ overnight or over a weekend"
And it'll work for a little while
Until it doesn't anymore
Supply is finite
There are TRILLIONS OF DOLLARS ON THE SIDELINES
Half of the world is awake while you sleep
Are you willing to take the risk that nobody will buy a huge chunk overnight?
That there won't be a sudden supply shock?
Supply is finite
There are TRILLIONS OF DOLLARS ON THE SIDELINES
Half of the world is awake while you sleep
Are you willing to take the risk that nobody will buy a huge chunk overnight?
That there won't be a sudden supply shock?
You'll get your 20% above the price where you sold it...
But you won't EVER get your Bitcoin back
You'll be left with 60-70% of the stack you sell covered calls on if the price rises 100%
If the price goes up 200%? You're going to be left with ~35%
But you won't EVER get your Bitcoin back
You'll be left with 60-70% of the stack you sell covered calls on if the price rises 100%
If the price goes up 200%? You're going to be left with ~35%
We're going to see this happen in our lifetimes
Most retail investors and options traders think they can look at charts
But they underestimate the importance of Bitcoin adoption being around 1-5% of the global population
A lot of VERY rich people don't own Bitcoin yet
Most retail investors and options traders think they can look at charts
But they underestimate the importance of Bitcoin adoption being around 1-5% of the global population
A lot of VERY rich people don't own Bitcoin yet
Money will pour in from some of the most sophisticated traders in the world
They will take everything you have
They will take everything you have
By holding your Bitcoin with Blackrock (and Coinbase), you also face the risk that your assets will be seized
How do you know that every Bitcoin on a US exchange won't become property of the United States government?
How do you know that every Bitcoin on a US exchange won't become property of the United States government?
Either way, you lose some or all of your Bitcoin
Are you willing to risk it all for 3-5%/month in yields?
I'm not
Are you willing to risk it all for 3-5%/month in yields?
I'm not
If you understand Bitcoin, your goal should be to create value, get paid, and convert it into Bitcoin
SELLING COVERED CALLS CREATES NO VALUE - its gambling
Covered calls will destroy the fortunes of retail investors who made it in real estate/stocks but don't understand Bitcoin
SELLING COVERED CALLS CREATES NO VALUE - its gambling
Covered calls will destroy the fortunes of retail investors who made it in real estate/stocks but don't understand Bitcoin
Stop looking for free income
Create more value if you don't want to spend your bitcoin
An income idea: post Bitcoin content on social media
Most people think Bitcoin content creation is a saturated market
Most people are always wrong
Create more value if you don't want to spend your bitcoin
An income idea: post Bitcoin content on social media
Most people think Bitcoin content creation is a saturated market
Most people are always wrong
If you enjoyed that thread follow me for more bitcoin related content π @rajatsonifnance
I have A LOT more content on my YouTube channel if you're interested π
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I have A LOT more content on my YouTube channel if you're interested π
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