3 ms·

How leveraged is that daily trading, I wonder?

• psychlops 3y ago
  I wonder that about the dollar.
  • pbhjpbhj 3y ago
    I realise psychlops comment is probably flippant, based on context, but could someone ELI5 what this means as if it were a [fully] real concern. {Meta, I just noticed GP comment is from 'eli', lol.}
    • make3 3y ago
      leveraged means, investment which is done using borrowed money (debt). So the preoccupation is something like, the value of the dollar would exponentially plummet if the interest rates went up, as it would suddenly be not worth it to keep the investment in the currency
    • psychlops 3y ago
      Yes, apologies if it were taken seriously. While the comment I was responding to is a good question, my intent was to highlight that values of all currencies are speculative based on their markets. With regard to currencies they all have slight concerns, but the dollar is safer as people run to it in a crisis which keeps the value relatively high. This will change eventually, but could happen next year or decades hence. If I could predict it, I would be far wealthier. With regard to Bitcoin, it is a relevant question despite my flippant response. The exchanges are well known to be corrupt and have a vested interest in keeping the price of Bitcoin high. Leveraging can happen there or off chain as was done with the relatively recent debacle with Terra/Luna.
• wslh 3y ago
  Doing a quick search I came up with these articles [1] & [2]. Don't know about there accuracy but set a ground to more research. [1] https://www.investing.com/news/cryptocurrency-news/bitcoin-leverage-ratio-surges-as-market-displays-feardriven-sentiment-93CH-3197478 https://www.investing.com/news/cryptocurrency-news/bitcoin-l... [2] https://www.coindesk.com/markets/2023/04/27/bitcoins-estimated-leverage-ratio-hits-lowest-since-december-2021/ https://www.coindesk.com/markets/2023/04/27/bitcoins-estimat...