About a month ago, fairly well known short seller Jim Chanos, made a presentation at some investing forum for his pairs trade, of going short Microstrategy and using the proceeds to buy Bitcoin.  Rather than making any kind of judgement regarding the value of, or future performance of Bitcoin, he was just making the case that the premium the market was placing on Microstrategy’s Bitcoin holdings, would come down over time.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       While I agree that he is correct and by not risking any capital on how Bitcoin itself performs going forward, I believe he is leaving money on the table.  If one is willing to tweak the trade to where you short MSTR but instead of buying Bitcoin, you use the proceeds to buy Silver (using PSLV as your proxy) you are betting that Silver will outperform Bitcoin going forward from here.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  This is obviously more risky than Chanos’ trade, but given Silver’s under valuation vs Bitcoin’s over valuation, a reasonable one for traders  such as Chanos,  used to taking a reasonable level of risk. (This is not investment advice, just my opinion)