TIL: a ‘rational bubble’ is a thing?
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One of the most prestigious journals in economics!
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Dude, its your money but this is one of the worst investments I’ve ever seen, and I’ve seen some extremely terrible investments.
Yeah the risk to reward ratio is baaaaaad.
But Crypto! It’s like Uber but for money!
I’m just a lurker in this thread, but it seems to me like the “where should I keep my cash savings” and “bank vs. credit union” conversations would fit better in the thread that (I think) was spun off for that very reason?
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Listening to this right now and still trying to wrap my head around the content, but the podcast guest is the developer of Strike, which appears to be a kind of transaction layer built atop the Bitcoin network enabling free, instant, global transactions not just in bitcoin, but any local currency, and without being limited to using any exclusive payment services like PayPal, etc.
If legit, sounds like it resolves many of the arguments for why BTC is impractical. And if so, it further boosts bitcoin’s use case.
Hopefully someone more financially savvy than me can listen and chime in.
I might listen to this, however, most times when the developer of something is the one touting its merits, it’s often nothing more than smoke blowing.
Are you suggesting there is bullshit, on the internet?
How dare you good sir!
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Unless I’m missing something, BlockFi’s financial model makes no sense. They pay a higher rate on deposits 6%+ than they charge on loans - per their website they offer loans with interest as low as 4.4%.
Their disclosures state that:
“In order to pay our clients crypto interest on a monthly basis and to meet withdrawal requests on a timely basis, we engage in a number of activities, including (1) keeping a material amount of digital assets available for withdrawal with third parties such as Gemini, BitGo, and Coinbase; (2) purchasing, as principal, SEC-regulated equities and predominately CFTC-regulated futures and (3) applying risk management to the lending activities in the institutional market.”
It sounds like they take peoples crypto then generate returns by using those funds to trade equities and futures. Thus, it sounds like they are not holding all their deposits in crypto, so they would be short crypto and likely are getting crushed by the spike in prices.
Again, I could be missing something about their model, but I see a huge chance anyone lending them money is going to lose quite a bit (and as noted it’s not insured, so you have zero protection on your principal).
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I feel like so many of the people who are trying to justify BTC’s current valuation assume that other assets and asset prices are rationally priced at all times.
Hell, in my lifetime, the Imperial Palace of Japan was considered to be worth more in Real Estate value than the combined value of all Real Estate in the state of California.
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Yeah I’m in no position to judge, but it sounds interesting.
They might just be burning capital from some investors chucking money at anything “crypto”.
I for one think it’s very reasonable for tsla to go up 7% every day
Stonks: Meh, who cares?
Bought on Christmas Eve, it’s been a fun few weeks on the FTFT train. All aboard!
Decided being up 358% in 2 weeks was good enough though, bon voyage FTFT!
Tesla on pace to be the worlds largest company by the end of January.
When this joke take turns out to be dead on.
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Is there anyone out there openly shorting Tesla? This is insane.
Jeff Bezos is so pissed he’s #2 now that he’s buying TSLA to catch up
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