Content adapted from this Zerohedge.com article : Source
by Tyler Durden
With Bitcoin prices down around 5% overnight and unchanged from Friday's close, shares of the Grayscale Bitcoin Investment Trust are up 8% this morning following news of a 91-for-1 stock split...
GBTC is surging on nothing more than a stock-split...
Sending GBTC's implied price for Bitcoin to over $17,600 - a 55% premium to the underlying price!
WTF!
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Sounds like a fantastic deal. 55% more for someone else to hold it for you! /Sarc
It does look like it is maintaining the substantial gap between the trust and the bitcoin. There is a great arbitrage opportunity if I saw one!
This is an opportunity to invest in the shares. At this rate it is a lot cheaper for some young investors to invest in their money. These opportunities don't usually present themselves.
The Bitcoin Investment Trust does not currently operate a redemption program and may halt creations from time to time. There can be no assurance that the value of the shares will approximate the value of the Bitcoin held by the Trust and the shares may trade at a substantial premium over or discount to the value of the Trust's Bitcoin. The Trust may, but will not be required to, seek regulatory approval to operate a redemption program.
So that means that if they are being redeemed, they will be called at around NAV. That makes some sense.
Do u think bro that bitcoin can reach to 30k dollar this year?
Huge price spike alright! I'm really interested to see whatT.A.'s have to say about this.
Thanks for the great article and for keeping the whole community informed @zer0hedge, would really appreciate any feedback you have on my latest post.
I'm also much interested.
Why would a stocks price surge after such news? Are there that muh dumb money, even in the stock market? I have never seen domething like this, I would be interested to know the SMI and availability of locates, lol.
It is actually common practice.
The $1700 price tag is just too much for many people so having something that is about 1/10th the price tends to bring in more people.
I recall when Apple did a 7 for 1 split...it went crazy for a while. Many jump on the bandwagon thinking that they now have 91 shares for each one before....hence that a dollar move will pay them 95 times.
Serious thinking makes one realize that stocks tend to move in percentages and a ten percent gain (or loss) will trigger the algorithms regardless of price.
I expect a pullback in this over the next few days.
Can you imagine ! Yes, smart money will hammer this one, lol !
I own some of this in my IRA. It was the only way to get into the crypto world via that vehicle so I took it.
I havent figured out where I stand with the split (I am up just not sure how much). Nevertheless, it is a way the average person can get into crypto without having to deal with keys and all that. One of the main things is IRA programs will allow it unlike BTC or any other token.
Stocks and tokens are completely different things and can't figure out why a stick split creates a spike in token value. Stocks are actual ownership bits while tokens are just unsure speculative assets that a company really can do without
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Petcone is known as the BTC, and is heavily traded against the rest of the major currencies through decentralized markets. The currency of the home is kept in places called "portfolio" which rely on special keys and encryption to maintain the home of a certain user or entity.
In comparison to the government-backed global currencies, the use of the currency as a currency is still somewhat complicated for the average user to get and use in normal transactions. The global investor interest in the portfolios has increased, but Blockchain technology made buying and selling homeowners easier for the average user. Increased acceptance by government agencies has improved the ambiguity of the legal and regulatory situation of Pitcuen.
You can find the trading prices on the Betcuain on our graph and the latest news and analysis on the trading price of the Petcavin
Tnx for this extra news to share.I didn't know many things from these news.
3D Printer stocks....
I still find it funny that people keep trying to compare Bitcoin to the stock of an actual company, or tulips for that matter
It is like saying that because a commodity chart did this then a stock chart should behave the same way.
They are different and behave differently.
I'm not saying BTC is going up or down. I'm saying it is unreasonable to expect it to perform similar to an equity.
It might end up looking like a LT VIX chart... Who knows....?
@zer0hedge
@zer0hedge...bro Blockchain technology and decentralized whatever are here to stay. These are still the early days however. Getting involved in it is the chance of a lifetime. And yes, there will be crashes, but for now the booms will remain to be bigger.few players that make industrial grade machines. The hobbyist 3D printer is disappearing as services like Shapeways take over printing trinkets.
3D printing is here to stay, but not at its stratospheric valued future self from 2013.The idea that every home would have a 3D printer is as insane as every person using Bitcoin.Unlike Cryptocurrencies I actually have a use for a 3D printer and use one every week. Because I design things for a living and the 3D printer helps me in the creative process..Well duh, there are twice as many shares now so it is worth twice as much. Same reason BTC goes up when there is a new ICO...thank you for sharing with us...
The total volume of the crypto currencies of 1495 virtual currencies has decreased by 11 billion to 572 billion 360 million dollars, corresponding to 1.9 percent of the market volume. The last 24-hour transaction volume in virtual currencies traded on a total of 8,195 different markets has been calculated as 25 billion 395 million dollars.
Bitcoin, which owns 33.4 percent of the crypto money market, traded at 11,770 at the rate of 4.74 percent over the past 24 hours, while Ethereum at 1.74 percent and Ripple 2.11 percent at Bitcoin Cash and Cardano at 5.68 percent and 5.66 percent respectively.
last 5 hours change chart. @zer0hedge
No they're not. 3D printer companies are shutting down everywhere as the industry consolidates into a few players that make industrial grade machines. The hobbyist 3D printer is disappearing as services like Shapeways take over printing trinkets.
3D printing is here to stay, but not at its stratospheric valued future self from 2013.
The idea that every home would have a 3D printer is as insane as every person using Bitcoin.
Unlike Cryptocurrencies I actually have a use for a 3D printer and use one every week. Because I design things for a living and the 3D printer helps me in the creative process.
I agree they aren't.
Please check my thoughts on a crypto currency ecomomy.
@weddingdresses
Sure bro.
Much appreciated. You got my follow.
Thanks for the analysis will have to check out zerohedge.com.
@zer0hedge, good...
this peak could give us a lot of opportunity to open and close positions and get a good profit.
bitcoin is still king and think right now it's now more established than every . we will continue to see more of bitcoin grow to a far better price after we saw a stagnation of 11k fora very long time.
great article and great analysis , keep the good work
Thank you for sharing this news.
Wait what? How does something like this happen?
Bitcoin is great site of investing to crypto carrency platform..i think it has a great future ..Many man can his opportunities in digital crypto carrency...Bitcoin never be stop!!! @zer0hedge
Betcuen is a digital currency, sometimes referred to as an encrypted currency, and is derived from a source called Blockchain. It is commonly known as the first non-central bank currency, which is traded on a currency basis. The exchange rate is determined against the US dollar and the major currencies Other on the basis of supply and demand as is the case for other world currencies. The value of KFH fluctuated and went down in a boom and bust, and in the end, many believe that KFH is a storehouse of value against government-backed currencies.
Petcone is known as the BTC, and is heavily traded against the rest of the major currencies through decentralized markets. The currency of the home is kept in places called "portfolio" which rely on special keys and encryption to maintain the home of a certain user or entity.