4 ms·
Hedging against a clearly inflated asset is "funny business"?
by tpallarino 9y ago
Hedging against a clearly inflated asset is "funny business"?
- zwily 9y agoThe funny business is that people were creating a position guaranteed to pay out free money, assuming bitfinex actually followed their own policy.
- tpallarino 9y agoThat's not true, I performed calculations beforehand to decide whether it was more profitable to hold BTC in the margin wallet as opposed to other assets (which I knew would rise after the fork). The core question is whether altcoins would rise more than the price ratio of BCH/BTC. Alts went up 20% while BCH/BTC is ~0.15, meaning you were better off skipping the BCH altogether and just holding alts. The tradeoff is the increased risk.