Replying to Avatar FreeYoda

What could be a reason for plebs to own this iso #Bitcoin itself ?

For companies that can't buy #Bitcoin I understand !
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Tony Carrera 8mo ago đź’¬ 1

If I understand your question correctly, you want to know why buy these Bitcoin proxies vs Bitcoin itself?

If so, it depends on the person.

It makes a lot of sense for people with assets in retirement accounts where they can easily invest in Bitcoin proxies as well as Bitcoin ETF’s.

Most Bitcoin treasury companies are essentially leveraged Bitcoin plays. Usually performance is somewhere between 1.5-2x spot Bitcoin.

So for people that want more performance from Bitcoin and are ok with the additional risk a company inherently has, it might make sense for them.

Some brokerages or retirement/401K accounts still don’t even let you buy Bitcoin ETF’s so these companies are a way around that.

It’s definitely not for everyone.

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FreeYoda 8mo ago đź’¬ 1

That was indeed my question.

I can't control how my pension, government scheme, is invested, so that is for us not an option unfortunately.

If one wants to leverage you could short or go long #Bitcoin.

So in that regard I was wondering why a private person would invest via Bitcoin proxies...

For me owning #Bitcoin myself is the only thing that makes sense.

For companies this is a completely different matter..

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Tony Carrera 8mo ago

Yea that’s perfectly fine to just own bitcoin itself, it’s ideal. Keep doing that.

Bitcoin proxies make sense for others. Not sure where you’re located but hopefully there is some sort of Roth IRA equivalent you can use.

I definitely take advantage of a Roth because come retirement I can withdrawal tax free. It’s a big benefit, especially for assets with a lot of growth.

Shorting or going long isn’t exactly leverage unless you’re doing it with margin on an exchange.

Bitcoin proxies provide leverage because they trade at a multiple and also are able to use low interest debt to buy more and use operating cash flows to pay for most of the interest.

But if you’re comfortable with just the bitcoin itself, just keep doing that!

You don’t have to use different tools like Bitcoin proxies, options, futures, etc. Simplicity can be the winner long run.