A lot of people have been skeptical about the story bitcoin yolo meme-warriors have been pushing about institutional investors getting in on the action.
This from Coinbase's IPO filing. 2017-18 was driven by retail. At least according to this, the late 2020 insanity has been driven by institutional investors.
Some of the "chain analysis" firms have been suggesting this as well, but they've been dismissed as seeing what they want to see.
What do the skeptics here think? Smoke and mirrors?
I agree that there is institutional money involved. However, I think most of these institutional dollars are hopping on a momentum trade expecting to turn large profits, not necessarily investing in “digital gold” to hold as a portfolio hedge. Again there’s no way to no for sure, so only time will tell. But I don’t buy that TSLA threw cash at BTC for any other reason then they thought it was a good momentum trade and could give them profits because nothing else they do is profitable. Elon Musk is the greatest stock promoter in history and buying BTC was another one of his signature moves.
I am, but in order to avoid my GPU to die prematurly and increase my ROI, i set up my GPU so that it only consumes 90W (instead of 180W), so the whole computer might be dissipating at max 250W while mining. That's not enough to heat even my small studio.
I wanted to replace my grandma's dying electric heating with mining rig, but there is such a shortage in GPU that I don't think it's an option now.
It's only a good idea if you happen to own a somewhat modern GPU. But if you need to buy one at market price, I'm not sure the ROI is worth it(you'de need about 6 months to pay for a GPU at current rates, that might seem low, but it would still feel wrong to me to buy GPU's just for mining, don't know why).
@Ego But who are those other institutions? Other exchanges and Grayscale?
Btw, regarding Grayscale. They are currently trading at 4% below underlying asset value. This is very strange. Seems like there is very little demand in the "real world" for those bitcoins Saylor bought. Or am I misinterpreting this?
Seems like there is very little demand in the "real world" for those bitcoins Saylor bought. Or am I misinterpreting this?
I don't know. If I were to guess I'd say they are offline in cold storage wallets where they will remain for a long time so it doesn't matter. I could be wrong.
@Ego But who are those other institutions? Other exchanges and Grayscale?
Btw, regarding Grayscale. They are currently trading at 4% below underlying asset value. This is very strange. Seems like there is very little demand in the "real world" for those bitcoins Saylor bought. Or am I misinterpreting this?
I think it's more related to the fact the 10 yr treasury is trading like a meme stock and spooking the whole market with rates. People are selling all the "risk" assets which is GBTC for sure, so if its on the stock market it's getting dumped. If we go back to "risk on" the premium will happen again imo. It's not an ETF so if there is a ton of selling the NAV discount totally makes sense.
My understanding of the GBTC price discount is because it is a closed end fund so it doesn't offer redemption or conversion. GBTC appealed to the early-adopter institutional investors who had no other way to get exposure to BTC, but now we have BTC ETFs in several countries (Canada, a few others in the pipeline). As more BTC ETF's come online in different countries, GBTC will continue to lose market share. I'd expect the eventual approval of a USA BTC ETF will be the final nail in the coffin.
