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
Abstract: In this piece, we compare the gold & precious metals trading community (gold bugs) in the 2009 to 2012 period, to that of today’s cryptocurrency community. In particular we look at the similar and controversial nature of the role played by US regulator Gary Gensler today and thirteen years ago. In both cases, some...Read More
Abstract: We take a second look at the fee differences between actual Bitcoin blocks produced by miners and the fees one may expect, based on a local Bitcoin Core node. We explore the concept of out of band fees as a potential explanation for these differences. We have detected evidence that the recent apparent increase...Read More
Abstract: When making low value payments on the lightning network, especially in “high” onchain fee environments, the security benefits of the lightning’s HTLC system may be somewhat limited. This problem may only be applicable in a limited number of scenarios, namely while the payment is in-flight and mainly for payment routers. Quantifying the magnitude of...Read More
Abstract In this piece we examine the history of the Bitcoin forum, which Satoshi launched in November 2009 and is still around today. In particular we focus on various hacks which impacted the forum in the 2011 to 2015 period. We also focus on the forum’s finances, including donations it received of over 6,000 BTC...Read More
Chapter 21 of the book Reckless: The Story Of Cryptocurrency Interest Rates is published below. The full book is available on Amazon. The book was written before the bankruptcy of FTX and therefore does not include coverage of this event. However, the book does provide useful commentary in the run up to the failure of FTX, which...Read More
Chapter 20 of the book Reckless: The Story Of Cryptocurrency Interest Rates is published below. The full book is available on Amazon. The book was written before the bankruptcy of FTX and therefore does not include coverage of this event. However, the book does provide useful commentary in the run up to the failure of FTX, which...Read More
Next Tuesday, 4 April 2023 (10:00 UTC/ 6PM SGT), we invite you to join one of our Co-Founders Arthur Hayes and the CEO of Voltz Labs, Simon Jones for a discussion covering Bitcoin and cryptocurrency interest rate derivatives. You’ll find the link to the Twitter Space here. Related The post appeared first on Blog BitMexRead More
Chapter 19 of the book Reckless: The Story Of Cryptocurrency Interest Rates is published below. The full book is available on Amazon. The book was written before the bankruptcy of FTX and therefore does not include coverage of this event. However, the book does provide useful commentary in the run up to the failure of FTX, which...Read More
Chapter 18 of the book Reckless: The Story Of Cryptocurrency Interest Rates is published below. The full book is available on Amazon. The book was written before the bankruptcy of FTX and therefore does not include coverage of this event. However, the book does provide useful commentary in the run up to the failure of FTX, which...Read More
Chapter 17 of the book Reckless: The Story Of Cryptocurrency Interest Rates is published below. The full book is available on Amazon. The book was written before the bankruptcy of FTX and therefore does not include coverage of this event. However, the book does provide useful commentary in the run up to the failure of FTX, which...Read More
Chapter 16 of the book Reckless: The Story Of Cryptocurrency Interest Rates is published below. The full book is available on Amazon. The book was written before the bankruptcy of FTX and therefore does not include coverage of this event. However, the book does provide useful commentary in the run up to the failure of FTX, which provides...Read More
Chapter 15 of the book Reckless: The Story Of Cryptocurrency Interest Rates is published below. The full book is available on Amazon. The book was written before the bankruptcy of FTX and therefore does not include coverage of this event. However, the book does provide useful commentary in the run up to the failure of FTX, which provides...Read More
Chapter 14 of the book Reckless: The Story Of Cryptocurrency Interest Rates is published below. The full book is available on Amazon. The book was written before the bankruptcy of FTX and therefore does not include coverage of this event. However, the book does provide useful commentary in the run up to the failure of FTX, which provides...Read More
Chapter 13 of the book Reckless: The Story Of Cryptocurrency Interest Rates is published below. The full book is available on Amazon. The book was written before the bankruptcy of FTX and therefore does not include coverage of this event. However, the book does provide useful commentary in the run up to the failure of FTX, which provides...Read More
Abstract: Recently usage of “Ordinals”, a system where one can embed image data into the Bitcoin blockchain has increased. In this brief piece, based on blockchain data, we analyse the growth of the Ordinals system. Up until 7 February 2023, we have identified over 13,000 of these transactions, which take up 526MB of Bitcoin blockspace....Read More
Chapter 12 of the book Reckless: The Story Of Cryptocurrency Interest Rates is published below. The full book is available on Amazon. The book was written before the bankruptcy of FTX and therefore does not include coverage of this event. However, the book does provide useful commentary in the run up to the failure of FTX, which...Read More
Chapter 11 of the book Reckless: The Story Of Cryptocurrency Interest Rates is published below. The full book is available on Amazon. The book was written before the bankruptcy of FTX and therefore does not include coverage of this event. However, the book does provide useful commentary in the run up to the failure of FTX, which...Read More
Chapter 10 of the book Reckless: The Story Of Cryptocurrency Interest Rates is published below. The full book is available on Amazon. The book was written before the bankruptcy of FTX and therefore does not include coverage of this event. However, the book does provide useful commentary in the run up to the failure of FTX, which provides...Read More
Chapter 9 of the book Reckless: The Story Of Cryptocurrency Interest Rates is published below. The full book is available on Amazon. The book was written before the bankruptcy of FTX and therefore does not include coverage of this event. However, the book does provide useful commentary in the run up to the failure of FTX, which provides...Read More
Chapter 8 of the book Reckless: The Story Of Cryptocurrency Interest Rates is published below. The full book is available on Amazon. The book was written before the bankruptcy of FTX and therefore does not include coverage of this event. However, the book does provide useful commentary in the run up to the failure of FTX, which provides...Read More
Chapter 7 of the book Reckless: The Story Of Cryptocurrency Interest Rates is published below. The full book is available on Amazon. The book was written before the bankruptcy of FTX and therefore does not include coverage of this event. However, the book does provide useful commentary in the run up to the failure of FTX, which provides...Read More
Chapter 6 of the book Reckless: The Story Of Cryptocurrency Interest Rates is published below. The full book is available on Amazon. The book was written before the bankruptcy of FTX and therefore does not include coverage of this event. However, the book does provide useful commentary in the run up to the failure of FTX, which provides...Read More
