woodguru

I've been reading different crypto reports on the state of the support it is getting from banks and Wallstreet firms, everybody seems to want in on the volatility of the growth, especially in regard to picking the winners...but the banks and fund management firms playing with billions of dollars in an investment that defines off the chart volatility, they also see nothing wrong with adding hundreds of millions and billions to help prop them up when they take huge losses that would tank them if it were not helped by additions of hundreds of millions.

The array of options trading, purchasing long and short positions, borrowing against billions worth of crypto as an asset, margin calls when the price drops to where it's collateral value isn't high enough, then adding more crypto to the asset rather than paying the margin calls.

To me this is like using a pile of crap as collateral, and when the collateral turns to crap, adding another pile to it to back a real money loan. What do you think happens to a loan for hundreds of millions of real money, backed by something that isn't worth a wad of snot, when that snot turns to crap? The person who borrowed the real money walks away and never looks back, a lender, in this case banks or money management funds, accepted a collateral that basically has no worth.

When the stock market goes south this crypto crap will be a huge driver.

woodguru

Here is another way of putting it...there are many many people that think the concept of investing in crypto is about as stupid and foolish way to lose your money as any Ponzi scheme, which it is.

So here we are where banks and Wallstreet are not being regulated in terms of them being allowed to invest retirement and savings of people who would absolutely never even think of doing such a stupid thing.

RascalRiley Loc: Somewhere south of Detroit

I watch it since the beginning. Reading this and knowing that bit coin bankruptcies are happening I am still apprehensive.

Milosia2 Loc: Cleveland Ohio

There are those unfortunates they’re called Sweet Gullible Ewes !