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Want to buy some real tulips from real people? That's not the 'broadest of definitions' at all. That's just what a bubble is: real people buying real assets fr
by efdee 5y ago
Want to buy some real tulips from real people?
That's not the 'broadest of definitions' at all. That's just what a bubble is: real people buying real assets from real people at hyperinflated prices.
As an aside, but not related to the matter at hand, what is the 'real asset' people are buying with crypto?
- throwheartaway 5y agoI borrowed against my crypto for USD/USDC and used it to buy a MacBook and pay my tuition. The underlying coins appreciated and earned interest in addition to negative APR (this is all programmatic; the contract will give the best interest rate the market supports) on the loan itself, so I ended up paying back less than I put in. Keep in mind: I am not in any way rich and paying out of pocket or taking a loan would have strained both me and my parents.
- lumost 5y agoYou could borrow against a house in '08 or against tulips in 1634. If it's the rising side of the market, you'll make a killing doing this. If it's the opposite side, then your collateral will vanish. Whether vanishing collateral matters to you depends a great deal on the nature of the debt you took out and what you spent the loan on.
- efdee 5y agoOf course I'm happy that you were able to profit from it, but nothing you just said answers my question or refutes the fact that it is a bubble.