101–107 of 107 posts
Earlier quoted context omitted.
> use the money to buy a 3x What's a 3x?
Someone who is willing to enter a "NASDAQ will go up" bet with you, where they pay you 3x the amount it went up when it does, and you pay them 3x (or some other number you agree on) the amount it went down when it does.
I had been warning about Celsius for months, in fact I even published this blog post last year: https://rorodi.substack.com/p/the-biggest-crypto-lending-com... Also posted it here on HN but it did not get much traction. What really baffles me is that major VCs have put hundreds of millions into what pretty much every one who has watched one or two episodes of "American Greed", would immediately recognise as being a p…
Seems like the common thread in these failures is outsized “guaranteed” returns. Are there other large systems or companies still paying out double digit rates now?
Earlier quoted context omitted.
> Now, you take that new token, exchange into new ETH You can only exchange it back into ETH after the lock period is over. Sure, you can buy ETH from someone else in exchange for this token, but you will pay a premium for that: obviously, people prefer ETH to some token that can be exchanged for ETH in the future and there is not an infinite supply of ETH available to be sold for this token. So no, you can’t just in…
That's just a different way to say you can leverage yourself close to infinity if you want. (How close depends on how much sETH trades to ETH on the dollar - if I understand the article correctly, it used to be pretty close.)
Earlier quoted context omitted.
and don't forget the "i lost my bitcoin password so i lost all my assets" and "my hard drive has been destroyed so i lost all my bitcoins" All those stories were solved across 120y of crisis and financials regulations. Not all of course, but finance, as a basis of the XXI century economy is far more robust that it was
Solved mostly by applying monopolized violence.
Earlier quoted context omitted.
Seems like the common thread in these failures is outsized “guaranteed” returns. Are there other large systems or companies still paying out double digit rates now?
Yes: Bitfinex, Crypto.com. Nexo, BlockFi, Ledn. I predict that they will all eventually collapse. It is a bit delayed with them because there is a locking period for most of them, this means that they will be in trouble in the coming days/weeks as they will have to honour massive withdrawals.
Earlier quoted context omitted.
"Historical upside potential". If it crashes 90% and then goes back to 30% of its peak a couple years later, pundits will declare bitcoin collapsed, but the people that bought around the bottom will make out like bandits. I dont see many failure modes for crypto itself. The exchanges and all the speculative bullshit built around it are a big problem, but the network itself will survive and there is a price where peop…
> I say this as someone that bought my first bitcoin at $5 and sold my last one for $4500. I left a lot on the table. It's called gambling and you should consider yourself lucky. Very, very lucky. You basically whine about 90000% ROI when it could've been 900000%. Let that sink in for a moment. Consider this: many small-scale investors entered the market right at, or very near recent peaks. What would someone say who…
Same thing I'd say to someone that bought Netflix stock around the same time. Gamblers beware.
Earlier quoted context omitted.
Someone who is willing to enter a "NASDAQ will go up" bet with you, where they pay you 3x the amount it went up when it does, and you pay them 3x (or some other number you agree on) the amount it went down when it does.
So, someone predicting a sudden downturn in a bull market?
In the context of "using leverage to provide better than expected returns in a Bull market", someone can buy TQQQ, securitize/create derivative (this is exclusively what crypto does) that returns 1.5 times the NASDAQ, sell you that derivative, and if the NASDAQ goes up 5% (TQQQ 15%) you get 7.5% and they get 7.5% (and your money).
If it goes down, you lose everything and they keep the money you gave them.