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"It has worked ok so far. Therefore there's no problem."
by dogruck 9y ago
"It has worked ok so far. Therefore there's no problem."
- qznc 9y agoYou want to suggest that they would not pay out if Bitcoin crashes to zero? Maybe. They are not regulated after all. They might also be bankrupt before Bitcoin hits zero. Still, you can short these 30% drops without problem. Did shorting the housing market work out well in the crash? I remember a movie with Christian Bale, where it did.
- dogruck 9y agoYes, some people successfully shorted the housing market. But they did not use bearer instruments to take their positions. https://en.m.wikipedia.org/wiki/Bearer_instrument https://en.m.wikipedia.org/wiki/Bearer_instrument Also, counter party risk was a major issue during that financial crisis.