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In your citation [0], table 3. "No counterparty risk" on bitcoin is listed as "High" and "Moderate" for treasuries. It also lists real estate and gold as having
by nknealk 6y ago
In your citation [0], table 3. "No counterparty risk" on bitcoin is listed as "High" and "Moderate" for treasuries. It also lists real estate and gold as having more volatility than bitcoin.
I would question some of those assertions. Especially the ones about counterparty risk.
- samvher 6y agoHaha yes I noticed that. That made me wonder whether the numbers are any good, but those should normally be a little bit harder to exaggerate.
- nknealk 6y agoYa. I'd really question how you can get 5%-10% yield in some of these deals. Risk and yield are generally very correlated. How much more counterparty risk are you really taking compared to treasuries which yield nearly 0%? Lots of times in finance when things are too good to be true it's because they are.
- thebean11 6y agoYeah that seems wrong. The solvency of the borrowers, and by extension the lending smart contract would be my biggest worry, especially while crypto price is crashing.