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I know one. He learnt about bitcoin in 2017 and bought one bitcoin at the top. He forgot he had it until bitcoin broke 20K in 2021. From there using simple trad
by CTDOCodebases 4y ago
I know one. He learnt about bitcoin in 2017 and bought one bitcoin at the top. He forgot he had it until bitcoin broke 20K in 2021. From there using simple trading strategies he managed to trade this one bitcoin into five before exiting after the price hit the most recent all time high. He got out at 50K exiting into USDT.
While waiting for a re-entry into bitcoin he found out about staking stable coins. He didn't understand how the UST peg was kept but like a lot of complex things in life he didn't question it. He knew the yield was abnormally high but chalked that up to the investors pouring money into the project trying to gain traction. He expected the yield to be lowered over time to normal market levels as investor money ran out and adoption occured.
He staked 250K and was earning approx $950 a week in yield. I spoke to him after the peg broke (0.33c) and he was confident that the peg was going to stabilise. I told him I didn't think that was going to occur and to exit on the bounce at a loss he was comfortable with. Suffice to say he ended up exiting UST at 0.10c.
To answer your question people get involved because they see opportunity, have a high risk tolerance and/or just don't understand the risks.
- SergeAx 4y agoOr just have free money to play around with.
- CTDOCodebases 4y agoTrue. Some people just don't value the money to begin with so they honestly don't care if they lose it.