You Cannot Have Arbitrage

Article
Joshua Henslee

2 months ago by joshua

A couple of days ago I wrote about my favorite YouTube channel Alpha Investments. He stated in one of his videos when ranting about sealed trading card products and the value of the cards in the box that:

You cannot have arbitrage!

Arbitrage is an abnormal market condition that rarely occurs such that traders can obtain significant profit, but it does happen.

Rudy was referencing how if the value of all the individual cards in a sealed box of Magic, Pokemon or Flesh and Blood were greater than price the sealed product, then that would be arbitrage and everyone would just buy sealed product for a guaranteed profit.

Of course this scenario, if it does occur, these conditions cannot last in a free market. Speculators would come in and reap the profits, moving the prices back to a typical equilibrium (where it becomes unknown if the value of the cards in the box exceeds the sealed product).

This statement applies in all markets, not just collectible trading cards. Well it turns out we may have an arbitrage opportunity in the BSV space within the next day or so.

TokenSwap is launching their USDT farming, which should incentivize movement of BSV and Tether into their on-chain exchange. I will not go into the mechanics of this as it has been covered by myself, Angus Adams and others.

Since there is such low liquidity due to the (self-inflicted?) so-called delisting ‘attack’ on BSV in April 2019, those paying attention have an opportunity to make some nice profit with the high yield TokenSwap will offer initially, especially since most believe BSV is scam.

Therefore, this is a huge arbitrage opportunity as no financial institution on the Earth will over over 400%, (let alone over 2%) for your US dollars.

Additionally, if those without BSV want to take advantage of this lucrative opportunity they must buy BSV with their Tether. #notfinancialadvice

If the BSV space’ hypothesis that the BSV price is rigged is true this activity could lead to price discovery on-chain, and on-chain alone. If the BSV price spikes on TokenSwap unilaterally not only would it prove the hypothesis correct, but obscene profits can be made as well as a result of the arbitrage as the traders will be able to sell their liquid Tron Tether on almost any cryptocurrency exchange.

Arbitrage opportunities must be corrected so either the BSV price must rise or lots of money must flow into TokenSwap, both being favorable outcomes.

You know, kind of like how SHA-256 miners have to move over to the chain offering the most revenue.

But what am I talking about! BSV will remain $160 forever.