With the combination of covered call, hedging and de-carrying strategies, bitcoin holders have been shown ways to earn more bitcoin on their bitcoin holdings.

Cryptocobasis Trading Guide

On October 10, 2018, Sandeep Jaitly launched, giving bitcoin holders the ability to increase their holdings of bitcoin whether the price of bitcoin is rising or falling by using the cobasis.

In Bitcoin and Bitcoin Futures (November 2017), Jaitly asked Are bitcoin holders holding bitcoin ‘for bitcoin’s sake,’ or for dollar’s sake and increasing dollar balances? Jaitly explained (1) how the bitcoin cobasis indicates when bitcoin holders should stay in bitcoin or move into dollars and (2) how bitcoin’s cobasis allows bitcoin holders and dollar holders to profit using bitcoin futures.

On July 24th, Sandeep wrote “ a sharp pullback for bitcoin” was likely (the price was $8,162). 18 days later, on August 11th, bitcoin was down to $6,091, a sharp 25% pullback — or a sharp profit for those who traded on Sandeep’s call.

On August 11th, Sandeep tweeted that bitcoin swaps against dollars had stopped falling signaling a reversal of the previous downward trend and that betting on a rise should be considered.

The use of the cobasis to profitably trade bitcoin is derived from Professor Antal E. Fekete’s study of the basis, a trading tool used by commodity traders. In 1971, Professor Fekete bought a seat on the Winnepeg Commodity Exchange to observe the first futures market in gold and, there, discovered the basis.

In 2009, I spoke at Professor Fekete’s Gold Standard University as did Sandeep Jaitly. At the event, Sandeep introduced his concept of the cobasis, a concept which Professor Fekete believed to be of extraordinary importance as evidenced in an interview with Professor Fekete and Sandeep Jaitly. Youtube: Gold Basis As A Trading Tool and The Armageddon Signal.

In Bitcoin and Bitcoin Futures, Jaitly discussed how the cobasis would signal a flight’ from dollars to bitcoin as well as a ‘flight’ from bitcoin to dollars, a subject of increasing relevance especially as the demise of fiat currencies nears.

We are approaching the 1,000-year anniversary of fiat paper money (invented in China in 1024) as well as the 10-year anniversary of bitcoin (January 2009); and while the future may belong to cryptocurrencies, the present still belongs to fiat money which will become increasingly chaotic as it collapses.

The following is an interview with Ralph Terry Foster, author of Fiat Paper Money, The History and Evolution of our Money. Foster’s book is required reading for those interested in money. Youtube: Interview with Ralph Terry Foster: The History of Money

Fiat money and its towering edifice of credit and debt is in its final stage. In 2009, the year central bankers embarked on quantitative easing, Sandeep and I discussed when fiat money’s endgame would occur, see Youtube: The Grain of Sand and the Economic Collapse.

In 2009, we didn’t know. In 2018, we do. Fiat’s endgame is in motion and cryptocobasis is offering its subscribers a way to come out ahead.

Note: The cost of subscribing to is 0.01 bitcoin per annum.

Darryl Robert Schoon

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