An economist explains that a simple Trading strategy Bitcoin believers, which is a cash payment of $ 1,200 from the newly adopted economic recovery program of the U.S. government, could provide a way to maximize your money.
Bitcoin ROI of 2,100 percent?
This strategy is only for those effectively, that the Bitcoin climbs up to the end of the year higher, but there is the Chance that you will yield in the coming year, up to 2,100% return on investment.
This potential return is based on a very popular business model, the reputation of many analysts as a drive for a massive Bitcoin boom in the near future. The model predicts that the Benchmark crypto-currency will be traded until December at $ 38,000.
Today, the Senate has passed the largest relief package in the history of the United States.
This bill is trying to combat the COVID-19 economic damage caused by granting small businesses, corporations, and workers affected by the pandemic greatly, help.
As part of this act, all Americans who earn less than $ 99,000 per year will receive a one-time check for up to 1,200 dollars, and 500 dollars per child.
It is expected that this cash helps the economy, and a much-needed boost there.
Some analysts also believe that Bitcoin-friendly people that receive this payment, you may use for the purchase of the digital system.
Highly speculative theory
This theory is however highly speculative, since many who receive the money, it will probably use to pay bills and maintain your lifestyle. After all, many Americans are currently faced with layoffs and forced holidays.
In the assumption that a part of these people want to spend their checks for Bitcoin, commented Alex Krüger (a popular Economist who primarily focuses on crypto-currencies) that there is a simple way on how you could maximize your return on investment.
Krüger explains, to buy through the use of a Dec/2020 Bitcoin Call Option with a strike price of $ 12,000, instead of just Spot-BTC, optimistic investors could see a return of 2,100% on your initial investment, under the assumption that BTC rises to $ 38,000, as it says, the Stock-to-Flow model.
“The US government will give everyone a Handout of $ 1,200, so you can buy a Dec/2020-Bitcoin Call Option with a strike price of $ 12,000. The Stock-to-Flow model predicts a BTC of $ 38,000. If such a prediction were true, it would provide the investment in a yield of 2.100%, compared to 470% from the Spot-buying.“
Of course, it is a relatively risky bet, because your success depends on the possibility that Bitcoin climbs to the end of the year will be significantly higher.
Nevertheless, it could be a great strategy for those who want to achieve the highest possible return from this “Free money”.