RE: Terror in the Markets; Terror in the Streets!
Bitcoin is like a unicorn that shits rainbows.
Bitcoin boogles the mind, because I think mass adoption is making the price susceptible to the same vagaries which effect the legacy market. It is ironic that Bitcoin has achieved much of the mainstream investment adoption we desired but the volatility that comes with the stock market seems magnified by Bitcoins small market cap and the rush to sell by many investors when BTC whales dump on the market. It was shocking to see all those bear market gains from 4000 to 9000 lost in a single day. And although I shook it off and bought at 5000 I am still Leary of going all in at this level.
I hope it has some independence as you ascribe to it. But I am tempted to buy Ethereum with my Bitcoin and just invest in an modest fractional investment program to stack Ethereum instead of Bitcoin.
Such as this:
You buy and ten Ethereum worth $1500 USD. You deposit your $1500 worth of Ethereum in the MakerDao, you can borrow 750 Dai, using your $1500 worth of Ethereum as collateral. You then exchange 750 Dai for $750 USD on the exchange and buy $750 dollars worth of additional Ethereum. Now you own $2250 dollars worth of Ethereum. So by using the MakerDao I am able to increase the amount of Ethereum I hold from $1500 to $2250, a 50% increase, but without investing any additional capitol.
While I pay 3.5% interest on the additional $750 worth of Ethereum, as long as Ethereum appreciates at greater then 3.5% per year you still get a positive ROI without increasing your capitol invested.
Plus if I add to my Ethereum holdings and borrow half of what I deposit, I can borrow an additional 375, 187.5, 93.75 and 46.87 Dai, convert to dollars and then Ethereum. I could end up with close to $3000 dollars worth of Ethereum in my MakerDao Account with only a $1500 dollar investment. I get wrecked if Ethereum crashes more then 50% losing half my banked Ethereum and ending up with close to my original investment minus the liquidation fee. But if I add to my Ethereum deposits during such a crash I can easily stay above the 1.5 ratio of deposits to debt.
What do you think?
I like your approach. Have you tried Celsius or Blockfi?
I have had BTC in Celisus since Oct and Blockfi since February.
Celsius seems like a good place to leverage BTC and pay your interest in CEL tokens at a lower rate.
I had the BTC in a Trezor earning nothing. It's nice to pick up more BTC weekly in Celisus.
Hi
I gave not tried these two blockchains.
Celsius sounds interesting.
Do you earn interest on your BTC deposits paid in CEL tokens?
Can you sell CEL on that same exchange for USD or trade the CEL for BTC?
Thanks
I take the interest payments in BTC. I also have Dash, Ethereum and Litecoin on Celsius. I take all payments in the native coins. For some reason getting paid in CEL is not an options for me. It may not be legal in my country. Also I want to build up as much of the coins above as I can. haha
I dont own any CEL at this time.
Do you know anyone that has done reviews on Celsius, Blockfi or other investment type companies?