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Decentralized lending is ~100% used right now for taking leveraged positions. Interest is paid because people have different beliefs about the value of the leve
by mgraczyk 6y ago
Decentralized lending is ~100% used right now for taking leveraged positions. Interest is paid because people have different beliefs about the value of the leveraged asset. I call that gambling. It's a personal choice if you went to call it something different.
- vmception 6y agoI don't draw distinctions between negative expected value table games and positive expected value financial games, and by that standard Mortgages and insurance is gambling and there is nothing wrong with that. My point is that the nomenclature isn't useful because its not different than other asset classes, but absolutely is used as an indictment against this asset class and market. Whether you and I are personally pragmatic about it as a personal choice or not.