Tax-free setup?
Updated
How I came up with this?
- I smoked catnips.
Context: Recent IRS news crashed btc price.
If this whale sold bitcoins before, it have to pay capital gain tax.
If this whale bought back what it sold then do covered short with new 1x longs (I saw long & short goes up together), then close the shorts at top or where it sold, this could
reversee it's realized capital gains into unrealized CGs.
- I smoked catnips.
Context: Recent IRS news crashed btc price.
If this whale sold bitcoins before, it have to pay capital gain tax.
If this whale bought back what it sold then do covered short with new 1x longs (I saw long & short goes up together), then close the shorts at top or where it sold, this could
reversee it's realized capital gains into unrealized CGs.
Note
This is a 10-digits bet, 10b!I can't imagine even if it's a institutional short-seller shorting.
or they smoked sth higher quality than me.
Note
"If this whale bought back what it sold then do covered short with new 1x longs"I made this unclear.
it might sold btc for 55k~65k,
it bought back the btc,
use the bought-back btc as collateral to short btc so no risk of liquidation.
use the gains from selling btc to open new longs.
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