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You can borrow btc then use that btc to take 5x leveraged positions on btc. If number go up, you make billions. If number go down 20% you default on loan. Abso
by based69 4y ago
You can borrow btc then use that btc to take 5x leveraged positions on btc.
If number go up, you make billions. If number go down 20% you default on loan. Absolute scumbag behaviour of course.
- LatteLazy 4y agoI guess that makes more sense. But then you're only 4x exposed to BTC (god help you). Why not borrow USD and do the same and get 5x leverage What's that thing about if you owe the bank 10k you're in trouble, but if you owe them 10m they're in trouble? :)
- akgoel 4y agoBecause BTC kept going up fast, and your 4X BTC bet meant you got keep borrowing more to plow back into BTC.
- acdha 4y agoI wonder whether it could be as simple as getting a loan in USD requiring stricter terms: he seems like the kind of guy who’d balk at doing more work to get less money, even if that’s ill-advised from a risk perspective.