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On the financial observations, all of those systemic risks were due to leverage. If there was real leverage intertwined with the parallel financial system, bitc
by vmception 5y ago
On the financial observations, all of those systemic risks were due to leverage. If there was real leverage intertwined with the parallel financial system, bitcoin and crypto would have to be 50 times larger, 100 trillion market cap full of commercial paper, longer dated bonds, rebundled and collateralized, and then those further traded on leverage.
- arcticbull 5y agoIf you don't think the crypto space is leveraged to the tits and back in an ouroborosian orgy of rehypothecation I've got an NFT representing legal title to the Brooklyn bridge to sell you. But no, leverage isn't what took down the Albanians. It was investing 50% of their GDP in unproductive MLMs.
- vmception 5y agoI think there is a lot of leverage in the crypto space, I don't think there is much contagion to the other financial system, yet.
- arcticbull 5y agoAh, I see, apologies if I misread because I agree with you.