Assume you buy 1 BTC spot at $10k and lodge it with Binance/Bitmex etc

June futures are trading at $11k so you sell short $11k (the extra 10% due to the 10% basis).

P&L for the futures is settled in BTC and not USDt.

With this trade there's zero risk towards the price of Bitcoin as you're perfectly hedged 1:1. The trade is all about picking up that 10% premium as it will shrink to near enough zero when the June futures expire.

But sometimes crypto can and does do very strange things.

So what I can't work out re real-time margining is if the spread temporarily blows out on the UPSIDE. Perhaps due to some strange event Spot doesn't move too much but the futures blow out to a 120% premium (would probably be only be for a few mins).

Does anyone know what would happen to the position in such a situation, could the whole trade be in doubt and the Exchange seizes all or part of the physical Bitcoin it holds if the spread goes to say 80%+.

I would think the Algos would not let the premium blow out that much due to the potential 'risk-free-ish' profits on offer but again this is crypto and just last weekend we saw the futures premium go 30% negative when it was 10%+ positive the day before. I think if you'd said last Friday that the futures premium would go 30% negative two days later, 99% of the pros (who do this sort of trade) would have laughed and said impossible (we're in a bull market), but it happened.

From the recent letter sent via CSW's lawyers to @jack at Square.

“We should add that our client, and others associated with him, have further rights relating to the Bitcoin technology and the Bitcoin name. It is their firm intention to enforce such rights in due course.”

CSW is NOT going to stop at the White Paper.

Chances are the Bitcoin name is next in his plans, then the tech/code/database etc.

Yes, it's fanciful, but still, it doesn't look like he's going to stop....

No need for to get the media onboard because they don't talk/write about BSV. They aren't interested and here's the proof -

Google - Bitcoin BSV
Click the News tab
Look at the top 30 listings.

The last time I looked (a few days ago), 27/30 articles were from Coingeek, owned by Calvin.

The other 3 were from minor websites talking about BSV price action - as in it bounced from the x moving average with y volume, next support expect at some level, that sort of crap.

Telling isn't it that nobody in the media talks about BSV when we're told it's so good it's going to take over the internet...

Thanks, I stand corrected.

But I think CZ delisted it because of CSW's antics at the time. Can't remember what he was ranting about at that time.

Anyway, the point stands, CSW is after the BTC name and maybe even the database. Yes, he won't win but does the industry need his hassle?

Starve the beast

Crypto Currency Exchanges, miners, and other related companies, have been making billions of USD in profit over the years from BTC, and will likely continue to do so.

Bitcoin is the Golden Goose that lays a conveyer belt of Golden Eggs. That is a tenacious trend that is in everyone’s interest to protect at all costs. 

CSW has hinted that his latest legal salvo is only the start. No doubt his ultimate aim is to get hold of the Bitcoin name as well as trying to cause many other problems in the space. Yes, most of his legal games probably won’t work (unless against a single person who can’t properly defend themselves because of time/money) but that’s not the point. The point is he’s going to continue to mess with the space so is a threat to the BTC Golden Goose and all the profit it produces. Think for a moment about the media’s love affair with BTC FUD? Throw in CSW and his stupid games and how they’ll love to write all sorts of nonsense. Yes, of course BTC can handle FUD, look at how it’s been eating ALL of it for the last 11-12 years but still, would you prefer more baseless media FUD or not?

So starve the beast.

How much revenue do you think BSV trading generates to the Exchanges? I’d hazard a guess, less than 2% of the total. Whatever the number is, it’s basically irrelevant in relation to the BTC revenue produced. Nice to have if you’re in the business of maximising profits but not a problem if the revenue is lost. Plus, if the majority of BSV revenue is generated from speculation against other CCs the speculators aren’t going to stop trading, they’re going to continue speculating on other crypto cross rates. So de-listing BSV might not actually reduce revenue in the longer term.

Getting rid of BSV revenue could be viewed as a strategic move to protect the other parts of your business akin to a General sacrificing part of his left flank to protect and secure his overall front.

ALL the exchanges should therefore consider de-listing BSV within the next month so as to starve the beast. CZ and some of the other big Exchanges obviously had foresight when they refused to list BSV right at the beginning. He recognised that CSW only brings problems and hassle so has been proved 100% correct. So if all the Exchanges de-list BSV that will put one big hole in the side of BSV and will in turn show CSW that his fight is against people and organisations far more powerful than he can ever hope to be.

CSW is a bully and the worst thing to happen to a bully is when they themselves get bullied by a much stronger person(s). Then they crumble.

Failure to deal with the multi-year festering sore that is CSW means it’s only going to get worse, stink worse, and be a greater problem and distraction in the future.

PS. I don’t know too much about miners and how they operate but the above applies to them as well. Stop mining BSV because you’re feeding the beast. I know Calvin also mines, so let him do everything. 

Brew, hats and o_e, all really helpful replies, got me thinking, just what I wanted.

Thanks a lot.

Thanks guys, but what about privacy in relation to that single 5 BTC UTXO?

Say in 5 years I want to send someone 0.05 BTC wouldn't they see I have 5 BTC (now 4.95).

Wouldn't it be better to say have 4 separate 1 BTC UTXOs and perhaps 20 x 0.05 UTXOs. Then in the future if I want to spend a bit here and there I can use the one of the smaller UTXOs or combine a few of them etc.

Thanks once again for your ideas.

Hiya

I've got 5 Bitcoins, collected over the years and want to put them all into cold storage for the next several years and not touch them.

I fully expect fees to be much higher over the coming years and was wondering if I should split the 5 BTC into a series of much small UTXOs?

Anyone got any views on this and if so what would be a good and sensible plan.

Thanks

Thanks, that's also a good learning lesson to me re Linux.

Really liking what I see with Armory, thanks Goat

For a Linux newbie like me, it sounded simple -

1. Burn a Linux iso and install on the non-internet PC

2. No need to update the OS

3. Copy Armory onto a USB and then install to the non-internet PC

4. All done.

APART FROM THIS -

You have to install the dependencies needed for the wallet, ie  sudo apt-get install python-qt4 python-twisted python-psutil

And that step needs to be online (I believe).

How can someone like me, a newbie, install Armory to a PC that has never connected to the net, nor should ever connect?

Thanks

So I was searching around and used the following to install it -

Right click on your desktop and open a terminal window

3.  First install dependencies needed for our wallet:

    Type:  sudo apt-get install python-qt4 python-twisted python-psutil

4.  Then install armory:

    Type:  wget https://github.com/goatpig/BitcoinArmory/releases/download/v0.96.4/armory_0.96.4_amd64_gcc4.7_noasm.deb

    This will get what is currently the latest version of armory.  If a newer version comes out, change the link.

    Type:  sudo dpkg -i armory_0.96.4_amd64_gcc4.7_noasm.deb

----------------------------------------------------------

It seemed to work ok, ie it said it wa installed.

Hello, Linux newbie here, having problems with installing Armory.

I've gone through all the steps from here - https://btcarmory.com/docs/building/, everything worked fine until just after ./configure where it said -

./configure: error: missing QTCore library, make sure libqtcore4 and libqt4-dev are installed


BUT when I did the long first line, ie sudo apt-get install git-core build essential pyqt4-dev-tools.............. it says I have libqt4-dev (latest version 4:4.8.7+dfsg-7ubuntu1) as well as libqtcore4 latest version (4:4.8.7+........)

Where am I going wrong?

PS. Using Kubuntu 18.04 with Bitcore Core 0.17 running with a fully synced blockchain.

Thanks!