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I find the logic a bit strained, get a loan -> buy NFT -> sell NFT cycle was sustained by 1000% rises in the NFT prices, not by the 0% interest rates of the lo
by glofish 4y ago
I find the logic a bit strained,
get a loan -> buy NFT -> sell NFT cycle was sustained by 1000% rises in the NFT prices, not by the 0% interest rates of the loans.
Hence my incredulity towards the claim that 0% interest caused the NFT boom.
- anonymouskimmer 4y agoNo, it wouldn't be the cause, but it is probably a contributing factor. Lower loan rates increase the number of people who both are willing to risk taking out a loan to buy something on FOMO grounds, and who are offered the opportunity to take out a loan in the first place. Lower loan rates also allow easy access to the money needed for wash trades and the like that allowed NFT (and cryptocurrency) market manipulation.
- vinyl7 4y agoChicken or the egg? Maybe nft prices went up because people had a bunch of free money that they had nothing better to do with