How safe to play against bitcoin

Today, many believe that the dizzying growth of bitcoin – by 643% over the past 12 months and more than 4000% in five years – is the biggest parabolic bubble of our time, which sooner or later burst with a big bang. However, none of these cryptosceptics is in a hurry to back up the words with deeds and really play against bitcoin. This is explained by the fact that it is almost impossible to guess the turn in the market, and, in fact, to sell bitcoin now means to go against the crowd. According to the hedge fund manager David Einhorn, even if the price for an asset is absolutely completely divorced from reality, this does not mean that she can not grow two or four times before the hour of reckoning comes. So how can you play against bitcoin without risking heavy losses in the event that the moment is picked up incorrectly? It’s not just the volatility and low liquidity of the crypto currency, you will not be able to find a worthy counterparty who wants to participate in this transaction on the opposite side.
An alternative solution was offered by the inveterate bear Andrew Left. He bet on the Grayscale Bitcoin Investment Trust, an American stock exchange that owns more than 170,000 bitcoins. The market capitalization of Bitcoin Investment Trust today is about $ 1.45 billion, which is 90% higher than the market value of all the bitcoins that belong to the fund. This premium will be reduced to 70% if investors also calculate the cost of their “bitcoin caches” – which were added automatically to all owners of the original crypto currency. In any case, such a huge premium is absolutely unjustified, especially given the fact that there are very few such funds that allow investors to trade bitcoins through the assets of the stock market, and their specificity has not been studied.
This is where the opportunity for cryptoscaptics to manifest itself lies. They can sell shares of the fund (short sales), while buying bitcoin for a similar amount for hedging purposes. If the market decides that a huge premium on the shares of the fund relative to the value of the underlying asset is not justified, they will be able to make good money.

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