Beta > Leverage

Beta > Leverage

It is maybe a sign of the times that Microstrategy is doing the same thing that retail investors do, leveraging up debt to speculate on an investment:

We should learn the lessons of history that while beta might increase your gains as well as losses, leverage can loose you more than all your capital, as illustrated in this documentary about the infamous Long Term Capital Management:

The Trillion Dollar Bet

If you are looking for ways to leverage the current Bitcoin halving/institutional adoption bull run, here are a few ways to do it:

  • CME Options on Bitcoin Futures
  • Altcoins such as Ethereum or a basket such as Bitwise
  • Listed Bitcoin miners like $MARA or $RIOT
  • Options on $MARA or $RIOT if you can time well enough with the >200% implied volatility
  • Microstrategy itself, since if you buy the equity, you cannot lose more than your initial investment