Is it possible to profit from bitcoins without owning them as an investment, but by using them to purchase something that increases their value?

Yes, it is possible to profit from Bitcoin without owning it directly. Here are some ways to do so:


1. Bitcoin Derivatives: You can trade regulated derivatives like futures, options, and exchange-traded funds (ETFs) that track the price of Bitcoin. This allows you to speculate on Bitcoin's price movements without holding the actual cryptocurrency¹.


2. Bitcoin Trusts: Products like the Grayscale Bitcoin Trust allow investors to gain exposure to Bitcoin's price through a traditional investment vehicle, without dealing with the complexities of direct cryptocurrency ownership².


3. Crypto Derivatives: Contracts like futures, options, and perpetual swaps enable traders to speculate on the price movements of Bitcoin without owning the asset³.


4. Affiliate Marketing: By promoting Bitcoin-related products or services, you can earn commissions in Bitcoin or fiat currency without having to purchase Bitcoin yourself⁴.


5. Arbitrage: This involves buying Bitcoin on one exchange where the price is low and then selling it on another exchange where the price is higher. Although this requires temporarily owning Bitcoin, the focus is on short-term trading rather than long-term investment.


Remember, while these methods can be profitable, they also carry risks and require a good understanding of the market and trading practices. It's important to research thoroughly and consider your risk tolerance before engaging in any Bitcoin-related investment activities.


Source: Conversation with Bing, 3/14/2024
(1) How to Invest in Bitcoin Without Buying BTC - CoinDesk. https://www.coindesk.com/learn/how-to-invest-in-bitcoin-without-buying-btc/.
(2) How to Invest in Bitcoin Without Buying the Cryptocurrency | Money. https://money.com/bitcoin-alternatives-for-investors/.
(3) How to Profit from Crypto Without Owning Any - Analytics Insight. https://www.analyticsinsight.net/how-to-profit-from-crypto-without-owning-any/.
(4) How to “Skim” Profits from Bitcoin Without Investing In Crypto. https://www.widemoatresearch.com/intelligent-income-daily/how-to-skim-profits-from-bitcoin-without-investing-in-crypto/.