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/biz/ - Business & Finance

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24603007 No.24603007 [Reply] [Original]

Is Schiff right about Greyscale?
>greyscale sells shares equivalent to BTC at 25% premium (so $25k)
>pockets $5k to advertise on tv networks and bus stations
>never sells BTC because they can pay themselves out of their premium
>this creates enormous upward momentum
>when BTC dips, and shares become cheaper than BTC, this cycle has to stop
>not only do they not make a premium, but they have to stop advertising
>have to sell 2% of their BTC holdings into the market annually to pay themselves
>buy pressure evaporates and greyscale is now selling more BTC than the miners
>greyscale shares are now cheaper to buy than BTC, so direct market buys from speculators dries up
>BTC tanks extremely hard
>pyramid collapses
Schiff is a massive coper about BTC in general but this actually sounds like an extremely dangerous bubble.