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If Bitcoin goes to zero then a lot of people will get margin calls that they can’t meet and this will cause all sorts cascading failures
by e9 5y ago
If Bitcoin goes to zero then a lot of people will get margin calls that they can’t meet and this will cause all sorts cascading failures
- animex 5y agoIsolated to the crypto ecosystem. The ramifications to fiat assets and financials is limited by the fact that there's not much free flow between crypto and fiat.
- e9 5y agoSo you think that if someone wipes out crypto they borrowed from exchange, then the exchange wipes out the assets they borrowed from some other account then person who lended crypto just looses and there is not much they can get back? So this way only crypto ppl loose?
- hungryforcodes 5y agoThat is only going to happen in leveraged Bitcoin markets like futures or options. The majority of crypto users are HODLers. Also with 10x-50x multiples, liquidations are going to happen way sooner than the apocryphal "zero". A move of 2.5% - 10% is enough to get a margin call.