The benefits of GBTC...

One of the problems with locking in profits in bitcoin is the tax issue that inevitable comes with it.

Trading bitcoin is difficult enough to do consistently profitable, but when you factor in the commission/fees as well as the taxes, it becomes that much more difficult.

What if there was a way you could trade bitcoin tax free and pay little to no fees?

Well, I'm here to tell you that there is!

There are multiple services out there popping up allowing to you buying bitcoin in retirement accounts, each one asking you to pay a tremendous fee to do so.

Those aren't what I am talking about here, nope, I'm talking about GBTC.

GBTC is the Bitcoin Investment Trust created and launched by Grayscale almost a decade ago.

(Source: https://medium.com/grayscale-investments/gbtc-sec-filing-8b4cb229088)

The premium recently bottomed around 7% recently and has since been climbing back up around 20% or so.

So, why GBTC?

There are several reasons to own GBTC.

For one, it can be owned in a self directed IRA. You know, those individual retirement accounts that you love to tinker around with?

Well, you can add GBTC in there and in most cases pay no trading fees to do so.

Another reason is the premium issue.

Since GBTC was created it has always traded at a premium to its bitcoin holdings, if you time things right you can get an increase in the bitcoin price as well as an increase in the premium on GBTC, which means GBTC can actually outperform bitcoin.

Crazy I know, but it's true:

(Source: https://bittrex.com/Market/Index?MarketName=USD-BTC)

And finally the other main reason to own GBTC...

Custody!

Everyone likes to champion the idea of being your own bank and "not your keys not your crypto", well news flash for you, the vast majority of people are not capable of providing adequate security and protection for themselves.

There is a reason that banks spend billions every year on security, it's a big deal.

With GBTC, your brokerage bares the responsibility of holding the shares for you, you have no hodling risk.

So, while many crypto purists out there will poo poo GBTC until their blue in the face, most level headed rational investors will quickly see that there are serious benefits to holding it.

All of this and I didn't even tough on the potential of doing a like kind exchange where you exchange your btc for shares of GBTC and collect a nice premium on your holdings. ;)

Stay informed my friends.

-Doc

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