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Nothing is 100% safe, but >150% overcollateralization is a rather decent buffer, even after accounting for crypto volatility. As a comparison, banks usually ope
by t_mann 4y ago
Nothing is 100% safe, but >150% overcollateralization is a rather decent buffer, even after accounting for crypto volatility. As a comparison, banks usually operate with less than 5% equity, and that's based on rather optimistic book values, as indicated by often significantly lower market capitalizations.
- ceejayoz 4y agoAny comparison that ignores the fact that banks have the FDIC backing up their depositors is a poor one.
- deleted 4y ago[deleted]
- JumpCrisscross 4y ago> >150% overcollateralization is a rather decent buffer, even after accounting for crypto volatility Oof, I remember people saying this before 2008.