Bitcoin has been one of the best assets on the planet since its launch in 2009. The price of digital currency rose by almost 9 million percent between 2010 and 2019. Having or averaging Bitcoin (BTC) positions simply leads to a certain benchmark of performance. It can be difficult to find an investment or trading strategy superior to Bitcoin, but a fund known as Off The Chain Capital claims to do just that. The fund has also outperformed the popular S&P 500 financial market indicator, although the S&P is a less aggressive opponent when it comes to price increases.
“It’s easy to outperform the stock market because if you look at Bitcoin versus other assets like dollars, gold, stocks and bonds, Bitcoin takes all the value out of them,” said Brian Estes, fund founder and investment manager. at Cointelegraph. Bitcoin naturally brings in more returns than other common financial assets like stocks and gold, he explained, adding, “Complexity beats Bitcoin.”
Estes Off created The Chain Capital in 2016 as a fund open only to friends and family. Estes explained that after a few years, the fund began to allow other members of the public to invest. He noted that “now we have more than 90 partners in the fund”. “The reason I decided to open a fund to outside investors is because I finally discovered how to beat Bitcoin.”
CT: Can you explain how the box works? Like what’s in the box and what do you think about it?
BE: I have found that the best way to beat Bitcoin is to buy Bitcoin at a lower price than others can buy or sell Bitcoin in the spot market. We found ways to buy discounted bitcoins, we found ways to buy bitcoins at spot prices and then sell them to people who will pay us a premium for bitcoins – that’s pretty much everything we do in a fund. Thus, we are a valuable investor in bitcoin and blockchain assets.
CT: When you buy lower and sell higher, are you talking more about long-term movement or card games?
BE: We don’t act. Our average shelf life is over 12 months, so we are not sellers. We do not use leverage. We don’t use a wallet to outperform Bitcoin. We use the traditional Warren Buffett, Graham-Dodd pricing method to buy Bitcoins cheap.
We are one of the largest buyers of Mt. World. Gox bankruptcy filing. Therefore, when purchasing Mt. Gox bankruptcy filing from people with claims against the company, our average cost is around $ 1,000 per claim and we accept assets worth around $ 3,000.
These assets in the lawsuit are 0.1785 bitcoins and 0.18 bitcoin cash, while cash there, like in coins, is only about $ 784. If you add it all up, you get about $ 3,000. As I said, our average cost is around $ 1,000. These claims will eventually be paid in the next few years, and when these claims are paid, even if the bitcoin is not moving, we have almost tripled our money because we are buying bitcoins at a discount in accordance with these requirements.
Mountain. The Gox legacy continues
Mountain. Gox started out as one of the oldest Bitcoin exchanges. The market operated from 2010 to 2014 and ended in disaster. The exchange underwent a notorious hack when it was revealed that the Fatal Parties had stolen nearly 850,000 bitcoins, leading to a stock market crash in 2014.
Fast forward to 2020, and the authorities are still studying the rubble and the consequences of this case. During the operation, the victims lost money from Jabal. Gox is filing claims for damages. Divisions like Off The Chain Capital are looking to buy back these earnings statements, albeit in the form of a delay bonus.
Mainly due to the bureaucracy and legal operations involved around Mt. Gox, these claims are not immediately paid and have many delays. Mountain. Gox’s secretary of rehabilitation, Nobuaki Kobayashi, oversees the trials. The payment of claims had a number of delays. Kobayashi must give the court a plan of action. Recently, the proposal submission deadline was changed from October 15 to December 15.
In addition to Mt. Gox claims that Off The Chain Capital is pursuing other strategies, although the company does not disclose these tactics to the public, Estes explained. However, Off The Chain Capital is not the only player interested in such a financial game. Fortress Investment Group is another example of a party showing interest in buying Mt. Gox claims.
Buy a clasp. Gox statements help both sides
Buying these claims also helps Mt. Victim. Gox situation. They can be compensated for their losses earlier, albeit at a reduced rate, by selling their claims.
CT: So Mt. Gox says: You don’t get the discount to pay yourself earlier than the future, right?