Lambos and girlfriends... if that might be the right word?
and blow too.
Girlfriends? I thought the Lambos and blow crowd preferred hookers.
I was trying to mix it up a bit, so we might not be pigeonholed too much... but yeah, girlfriends are a bit more of a commitment. .even though I have frequently heard the expression, we are all going to get girlfriends (once our bitcoin are worth a certain amout).
Its just getting weird out there.
Like?
more weird than usual?
Yes. Elsewhere they say it explicitly: all the yield is expected to come from the basis trade - nothing riskier than that. I lost the link and can't find it right now, but it confirms what you're saying.
I wouldn't mind throwing some corn at a thing like that, especially if the custodian is "too big to fail", as Coinbase got to be. As for nonavailability in the US, this is exactly the kind of thing that might change with a friendlier regulator at work. And I'm pretty sure there will be copycats and similar funds will pop up like mushrooms. Trusting the custodian will be the hard bit. But yield without selling is sooooo sweeeet...
So many of those kinds of yield products went tits up in 2022, and yeah, hey, no problem if a guy might say that he can live off of 4-8% in yield that is generated in bitcoin in a kind of perpetual way, so then he decides that the average of the fund (according to their proclamations) might be 6%, so then if he wants to earn $80k income per year off of that, so then he might consider putting around 20 BTC into the fund, so that he can start earning and finding out if he is able to get $80k per year from that.. and I suppose that there are tax ramifications, too...
His yield is likely going to be bit irregular (based on changes in the BTC price and changes in the amount that they are going to be paying for the yield), so yeah maybe he does not need to put 20 BTC into the fund in order to earn his $80k per year. Maybe he can put less into the fund, yet he probably needs to find out the extent that the fund pays off as well as it claims to do, and so he starts to earn his yearly yield from that amount of BTC even though it may well not be paying the full $80k (but he will find out, I suppose), and hopes that he does not get rugged out of his 20-ish BTC in the process.
Maybe if he has 40 BTC, then he might feel that it is worth it to put 1/2 of his BTC into such product, but if he only has 20 BTC, then maybe he might ONLY want to put 10 BTC into it, but then he would ONLY get $40k per year from that rather than $80k.. even though my claim is that currently the threshold amount of BTC for being able to earn
$80k per year of sustainable passive income off of it is 17.25 BTC.
+1 WOsMerit.