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Because the market can remain irrational longer than you can remain solvent. Just look at the state of Meme stocks now.
by esyir 5y ago
Because the market can remain irrational longer than you can remain solvent. Just look at the state of Meme stocks now.
- gruez 5y agobut stablecoins are basically guaranteed to never exceed $1, so your downside is essentially limited to the interest you pay.
- esyir 5y agoTherin lies the rub. With options, you're making a double bet :first that it is overvalued, and second that you got the timing right. If you're wrong on either, you lose money. You don't get the really huge blowout risk due to the stable nature, but the other two still apply.
- croes 5y agoI don't think so https://twitter.com/Bitfinexed/status/1405037796172222466?s=20 https://twitter.com/Bitfinexed/status/1405037796172222466?s=...
- gruez 5y agoMy response to that: https://news.ycombinator.com/item?id=27529751 https://news.ycombinator.com/item?id=27529751
- mcintyre1994 5y agoEven if the narrative is nonsense, would a short not have got ruined by that spike regardless of cause?
- croes 5y agoBut still invalidates your claim >stablecoins are basically guaranteed to never exceed $1 Why it happened is debatable, but not that it happened.