Abstract: We take a look at MicroStrategy’s outstanding bonds and look at their structure and convertibility options. We comment on the possibility MicroStrategy could be required to sell Bitcoin, in order to pay back bondholders in the event of cash redemptions. We argue that these forced liquidations appear highly unlikely, based on the current debt...Read More
Abstract: We look at Babylon, a Bitcoin based staking system which has already attracted inflows of almost 24,000 BTC. We compare Babylon to CoreDAO and note Babylon’s interesting usage of Tapscript spending conditions. We note that unlike Ordinals, Babylon is not using Taproot in a somewhat trivial way and is using it more in the...Read More
Abstract: We make a brief comparison between some of Bitcoin’s supposed “layer 2” systems, such as Lightning, Ethereum (WBTC), Blackrock’s $IBIT and a sidechain called CoreDAO. We argue that a critical factor to consider is whether the system is non-custodial or not. CoreDAO has non-custodial Bitcoin staking, however, we conclude by claiming that it was...Read More
Abstract: In this piece we compare the economic costs of attacking a Proof of Work network and a Proof of Stake network. We break down the analysis between the cost to rent the hashrate/stake and the cost to buy the hashrate/stake. We address the misconception than Proof of Stake networks are inherently much more expensive...Read More
On 20 May 2024, Dr Craig Steven Wright was found by the High Court of England and Wales to have been dishonest in his claims to have been the person behind the pseudonym Satoshi Nakamoto (the creator of Bitcoin). The Court found that Dr Wright “lied to the Court extensively and repeatedly” in his evidence...Read More
Please see below our commentary from the courtroom in London, for the hearing which took place on 7 June 2024. This hearing related to the COPA vs CSW identity trial, which CSW lost. The main topic of the gearing focused on what injuctions, if any, to impose on CSW following on from his loss. We...Read More
Abstract: According to new findings from @mononautical, Bitcoin mining is dangerously centralised, with one entity controlling the coinbase outputs for around 47% of the network hashrate. Bitcoin analyst Alex Bergeron claims the reason for this centralisation is that miners want to eliminate all the variance in their revenue and that entities with large balance sheets...Read More
Abstract: In this piece we take a look at the BIP process and the shenanigans around the assignment of BIP numbers, with three alternative numbering systems being proposed. Frustratingly, there was a delay in assigning BIP numbers as the person allocated this role (Luke Dashjr) was busy with other tasks. It is almost as if Bitcoin...Read More
Abstract: We take a look back to 8th September 2014, the day Satoshi’s GMX email account was hacked. We talk about how the hack may have been conducted and what the hacker or hackers may have seen. We also disclose some emails between the hacker and Gregory Maxwell, for the first time. On 9th September...Read More
Abstract: In this piece we discuss the potential approval of Ethereum ETFs in the US. In particular we focus on the economics of staking and how the lack of a yield could diminish the attractiveness of non-staking Ethereum ETF products, to some extent. We also look at the challenges of implementing Staking Ethereum ETFs, in particular...Read More
In court today, it was the turn of the COPA expert witness, Mr Patrick Madden. Cross examination occurred in the morning, and was over much faster than expected. COPA’s key witness was expected to testify over two days, but it was over in just one morning. The key point Craig’s barrister made was that it...Read More
Executive Chairman and CEO of nChain Group, Stefan Matthews started his first day of cross-examination today. Stefan has been a key player in the Craig Wright saga, with deep involvement ever since Craig started claiming to be Satoshi. To this day, Stefan still maintains that Craig is Satoshi. In Court today Mr Matthews said: I...Read More
Overview The launch of the spot Bitcoin ETFs in the US looks to be just days away. According to a recent Reuters article, the products could launch as early as 10 January 2024. In preparation for the launch of these products, we have been publishing some data on the exchange traded product (ETP) space and...Read More
Following on from yesterday’s post, which contained a full list of crypto related ETPs (The full list can be downloaded here), today we present some charts on the crypto ETP data. Number of Products by ETP provider Source: BitMEX Research, Bloomberg, ETP provider websitesNote: Data as at 22 Dec 2023 Assets by Provider ($m) Source:...Read More
Abstract: We examine the various time locks in Bitcoin, a feature which can ensure that a particular Bitcoin transaction is only valid until after a certain point in time, normally in the future. The report explains why the adoption of some of the time lock features are important from a mining incentivisation perspective and we...Read More
This article looks into the balance of all candlesticks, specifically neutral candlesticks and how they forecast trading performance in crypto. What is A Spinning Top? A Spinning Top is a candlestick pattern which symbolises market indecision, with close prices close to each other and identified by its short upper and lower wicks. What are the...Read More
This piece will delve further into neckline continuation patterns including Cup and Handle Patterns and Head and Shoulders, and how their unique layouts are important for any trader. This blog is part of a series that has already covered; the basics of chart patterns, guide to continuation patterns and the roles of triangles. What is...Read More
This is a guest post, written by BitMEX_Pez Over the past week, I’ve been investigating how feasible it is to be paid in Bitcoin. In the past, I declined the opportunity, as more than half of my salary goes towards fixed costs in fiat terms such as my rent, mortgage, and school fees. However, with...Read More
THE COURT: Good morning, everyone. Everyone can be seated. The defendant and the jurors all are present. A word to the jury about schedule. You are going to hear closing argument today. We may finish them entirely today or we may not. That depends on how the day goes. If we don’t, they will be...Read More
The CIO of Ikigai Asset Management, Mr Travis Kling sent us a message, he asked for a blog post with a link to every Tweet we made in relation to the SBF trial. We decided to comply. Please see all the links below: Full transcripts to the days with the SBF cross-examination Sam Bankman-Fried Trial –...Read More
Below is the full transcript for events of 31 October 2023. Evidence finished on the day and closing statements will take place on 1st Nov 2023 THE COURT: Good morning. Before we bring the jury out, we’ve heard from the juror who didn’t know her schedule yesterday, and that juror has no problem that is,...Read More
Abstract: Official inflation numbers have declined towards the 2% target and remarkably, interest rates have moved to historically more “normal” levels, above 5%. However, we predicted for years that returning to “normal” rates was impossible, we argued that the economy had rewired and was now addicted to near zero rates. Yet things seem fine now,...Read More
Abstract: We look at the recent apparent cultural schism in Bitcoin, in particular the so-called laser eyed Bitcoin maximalists and the accusation from “anti-maxis”, that this section of the community are too close minded and too dismissive of new ideas. We speak to a key proponent of this criticism of Bitcoin culture, Udi Wertheimer. We...Read More
This article explains how to place a trade using leverage on BitMEX. For the purpose of this example, we will use a XBT/USD futures contract on BitMEX. Such contracts on BitMEX are inverse futures contracts, with one example being XBTU23 – contract symbols are comprised of the Bitcoin symbol (XBT), accompanied by the respective expiry...Read More
As traders graduate from spot trading to using leverage either through margin trading or futures contracts, they invariably ask themselves “Where or who is providing the leverage?” This article has been created to explain how leverage is granted when trading margin and futures crypto contracts. What is Margin Trading and How Does it Work for...Read More
A common question that traders have is how to execute interest rate trades using BitMEX products. These trades are also referred to as basis trades. This article gives an overview of three basic basis trading strategies in crypto, which allow traders to capture basis as profit. Where Does Basis Come From? Traders on derivative exchanges...Read More
Traders who simply wish to buy and hold Bitcoin are recommended to either store their funds in cold storage, or keep them on a trustworthy and credible exchange. Exposure to counterparty risk only comes with a lack of understanding of the security and custody infrastructure of the counterparty – in this instance, the exchange. The...Read More
A crypto perpetual contract, also known more commonly as a perpetual swap or just “perp”, is similar to a futures contract, except it has no expiry date. This article was created to take a deeper look at “perps”. An Overview of Interest Rate Swaps To explain what crypto perpetual contracts are and how they work,...Read More
Abstract: In this piece we evaluate Paul Sztorc’s BIP-300 and BIP-301 Drivechain proposals. We assess the sidechain peg-out system and the benefits of blind merge mining. In particular we discuss some of the Bitcoin mining economic and incentive arguments around sidechains. There are potentially higher mining costs associated with merge mining and the claim that...Read More
