Kosta Ouzas compares holding Bitcoin to an algorithmic trading approach. Holding only profits when price hits new all-time highs, leaving long gaps of idle or falling value. An algorithm trades the price action instead, generating yield on top of your held Bitcoin.
Chapters
When you are spot holding Bitcoin, essentially for you to be gaining profit, you are relying on bitcoin to constantly break new all time highs. So when it makes these all time highs amazing, you're in profit, you're making money. But as we know, bitcoin doesn't continuously go up forever. There's long periods of downwards price action and periods where the market is moving sideways, where your bitcoin is basically sitting there idle. Now, what the algorithm does is it will trade Bitcoin's price action and it will allow you to gain yield on top of your bitcoin, and it does this in a very safe and intelligent way.