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I don’t get how everyone misses this part. Assuming counter-party risk is 0. This is still not a risk free trade by any mean, even if Tether collapses at certai
by csomar 4y ago
I don’t get how everyone misses this part. Assuming counter-party risk is 0. This is still not a risk free trade by any mean, even if Tether collapses at certain point in the future.
At such high interest rates, you need to close the deal soon otherwise you are bleeding your capital really fast. The interest compounding also means you are losing your money in a compounding fashion.
If the author started shorting Tether 5-6 years they’d never turn cashflow positive and they’d be nearing bankruptcy where they lose all their monies.
- canadianfella 4y ago[dead]
- williamsmj 4y agoThey are investing $250. The author realizes that this is not a great trade. It’s a proof of concept.
- deleted 4y ago[deleted]
- SilasX 4y agoDid we ... need proof of this concept? Here's a thread just on this forum, from over a year ago, explaining exactly how to short Tether via the trade the author is "proving": https://news.ycombinator.com/item?id=28796356 https://news.ycombinator.com/item?id=28796356
- iamben 4y agoMy take was this is less about proving a concept and more a nerdy/amusing/I don't mind losing money way of saying "I strongly believe Tether is a house if cards that will blow over at some point". Hence the last line - "for the eventual pleasure of saying “I told you so”."
- deleted 4y ago[deleted]