Anyway, how on Earth are these leveraged longs holding on for these periods of time while paying these sky-high interest rates? Especially considering interest rates for USD are at record lows in the real world ... It just makes zero chance. I would not be surprised if something shady is going on.
Just look at the charts - as long as there are swings like this, 0.2%/day interest is pocket change. Also consider that other exchanges charge more for a single trade (often from both sides), not just per day. If you trade one single time less you already have saved the swap fees... 
Topic: This Bitfinex Credit Bubble cannot end well - page 34. (Read 62099 times)
more and more people are realizing 10% interest a month on bitfinex will almost certainly make more than long term btc holding.
At 10%/month (what I've been making at finex), btc would have to be 6000 in 2 years.
At 10%/month (what I've been making at finex), btc would have to be 6000 in 2 years.
In Bitcoin there's no counter party risk though.
Anyway, how on Earth are these leveraged longs holding on for these periods of time while paying these sky-high interest rates? Especially considering interest rates for USD are at record lows in the real world ... It just makes zero chance. I would not be surprised if something shady is going on.
Because theyre gamblers and they believe the pump
more and more people are realizing 10% interest a month on bitfinex will almost certainly make more than long term btc holding.
At 10%/month (what I've been making at finex), btc would have to be 6000 in 2 years.
At 10%/month (what I've been making at finex), btc would have to be 6000 in 2 years.
In Bitcoin there's no counter party risk though.
Anyway, how on Earth are these leveraged longs holding on for these periods of time while paying these sky-high interest rates? Especially considering interest rates for USD are at record lows in the real world ... It just makes zero chance. I would not be surprised if something shady is going on.
The total $ swaps stay around 29M$, while the bid sum is just below 4M$. Looks so healthy ... not.
But as long as the BTC swaps don't jump, this can continue for a while.
In order for this data to have any meaning, you would need to know just how leveraged traders that take out these swaps are, if they are only leveraged 1.001 to 1 then they could simply close a small portion of their holdings with little impact on the market if they cannot borrow at reasonable terms. But as long as the BTC swaps don't jump, this can continue for a while.
Total swap of 29M alone shows many are quite bullish at bitcoin and willing to borrow at high rate to own bitcoin.
The total $ swaps stay around 29M$, while the bid sum is just below 4M$. Looks so healthy ... not.
But as long as the BTC swaps don't jump, this can continue for a while.
In order for this data to have any meaning, you would need to know just how leveraged traders that take out these swaps are, if they are only leveraged 1.001 to 1 then they could simply close a small portion of their holdings with little impact on the market if they cannot borrow at reasonable terms. But as long as the BTC swaps don't jump, this can continue for a while.
Total swap of 29M alone shows many are quite bullish at bitcoin and willing to borrow at high rate to own bitcoin.
The total $ swaps stay around 29M$, while the bid sum is just below 4M$. Looks so healthy ... not.
But as long as the BTC swaps don't jump, this can continue for a while.
In order for this data to have any meaning, you would need to know just how leveraged traders that take out these swaps are, if they are only leveraged 1.001 to 1 then they could simply close a small portion of their holdings with little impact on the market if they cannot borrow at reasonable terms. But as long as the BTC swaps don't jump, this can continue for a while.
The total $ swaps stay around 29M$, while the bid sum is just below 4M$. Looks so healthy ... not.
But as long as the BTC swaps don't jump, this can continue for a while.
As the swaps mature the other party to the swaps will likely want to enter into new swap agreements. But as long as the BTC swaps don't jump, this can continue for a while.
The total $ swaps stay around 29M$, while the bid sum is just below 4M$. Looks so healthy ... not.
But as long as the BTC swaps don't jump, this can continue for a while.
But as long as the BTC swaps don't jump, this can continue for a while.
like i was saying the other day -- just looking at those numbers is scary. and it only continues to diverge even more. i know bids would fill in during a serious decline.... but just how many?
The total $ swaps stay around 29M$, while the bid sum is just below 4M$. Looks so healthy ... not.
But as long as the BTC swaps don't jump, this can continue for a while.
But as long as the BTC swaps don't jump, this can continue for a while.
For a while. But how long? Personally, I see a bullish move to the $700s brewing, and I am praying that some of these swaps come down during that time (rather than the opposite, which has been happening --> price goes up OR down, swaps go up). Unfortunately, I think many will see a move like that as confirming the coming of the next bubble, when in fact, we might retest the lows...
The total $ swaps stay around 29M$, while the bid sum is just below 4M$. Looks so healthy ... not.
But as long as the BTC swaps don't jump, this can continue for a while.
But as long as the BTC swaps don't jump, this can continue for a while.
Can someone please tell me what kind of returns you can make if you deposit to Bitfinex and lend out for margin traders?
As I heard you dictate the amount of profit yourself and traders can then choose to use your funds to leverage or not. The system automatically makes that decision for them if they take a position.
Can someone please tell me what kind of returns you can make if you deposit to Bitfinex and lend out for margin traders?
Don't forget letting someone hold your money is risky also.
Depends on what you lend out (BTC, USD, LTC), also it depends on the market - so far I've earned from several % per day down to 0.00XX%.
Check out bfxdata.com for example to get an overview over current rates.
Check out bfxdata.com for example to get an overview over current rates.
Can someone please tell me what kind of returns you can make if you deposit to Bitfinex and lend out for margin traders?
The case with Mtgox is most likely same with MG Global. Betting with customer money and went bust.
The case with Mtgox is most likely same with MG Global. Betting with customer money and went bust.
There's almost 29M usd swaps now on bitfinex, and to me it looks like the upward momentum has stopped. If the price ranges from 640-660 for a while with no upward movement the probability of a long squeeze is going to increase dangerously.
Quite a lot of money they are holding.
What stop them from running away or claimed hack like tradefotress did?
You don't have to worry if they run off with your money. You should worry about how to get your money out in case of insolvency
There's almost 29M usd swaps now on bitfinex, and to me it looks like the upward momentum has stopped. If the price ranges from 640-660 for a while with no upward movement the probability of a long squeeze is going to increase dangerously.
Quite a lot of money they are holding.
What stop them from running away or claimed hack like tradefotress did?
This is only true when bitcoin is still growing and market is expanding.
Volume is a function of growth and expansion. High fluctuation in price attracts gambler and speculator, which also mean increase volume.
There's almost 29M usd swaps now on bitfinex, and to me it looks like the upward momentum has stopped. If the price ranges from 640-660 for a while with no upward movement the probability of a long squeeze is going to increase dangerously.
Quite a lot of money they are holding.
What stop them from running away or claimed hack like tradefotress did?
This is only true when bitcoin is still growing and market is expanding.
Volume is a function of growth and expansion. High fluctuation in price attracts gambler and speculator, which also mean increase volume.
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