Rehypothecation : Rehypothecation is the re-use of collateral from one lending transaction to finance additional loans. It creates a type of financial derivative and can be dangerous if abused. https://www.thebalance.com/rehypothecation-investment-disaster-357232 To fully understand rehypothecation (and hypothetication), we could write a couple of thousand words on the subject. Much easier to use some examples. Remember the Gamestop fiasco? At one… Read More »

One of the drawbacks of owning bitcoin for a number of years is the occasionally painful crick in the neck. From looking over your shoulder…watching out for the next dump. But lately, watching your back has been a waste of time. For the last five months (since October), Bitcoin has been on a tear, with monthly returns of… Read More »

Thank you for continuing to read this blog. Because I know it is much more interesting to hear about Elton Musk pumping Dogecoin or the Wallstreetbets guys pumping Ripple. . Never mind it is the little guy who is always left holding the bag, as long as it’s entertaining, am I right? But let me reward your perseverance and loyalty with… Read More »

It is really helpful as an investor to know your position on the food chain. Are you a whale, shark, salmon, minnow, or plankton? Here is a hint: If you trade on Robinhood (or in Canada, Wealthsimple) exclusively, then you are plankton. Why is that? Before I explain, let’s recap what has happened so far this week (VERY… Read More »

This chart says we are headed for some fun times for 2021. From Glassnode Let me explain. The green spikes represent bitcoin flooding into the cryptocurrency exchanges. The red inverse spikes represent bitcoin LEAVING the crypto-exchanges. Obviously, when bitcoin is leaving crypto-exchanges, that means liquidity is drying up. The last time the market saw this much bitcoin flowing… Read More »

The number is $3.2 billion USD. In an era of trillion-dollar stimulus packages, that number looks small. But it is possibly the biggest driver behind the great crypto-boom of 2020-2021. Three-point-two billion dollars is the amount of money that flowed into Grayscale Trust to buy crypto coins such as bitcoin and Ethereum, in the fourth quarter of 2020. Not… Read More »