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.
That rate is not sustainable.
And I don't think you fully realized the amount of risk you have taken.
I don't think many of the lenders have. It's all good if we see another raging bull market, but if not, this could seriously all end in tears. Best of luck to all the lenders there.
You obviously have no real world experience with Bitfinex. Time and again, they have protected their lenders from flash crashes. But if you are too damn lazy to have done the research to even know these well known facts before coming into this thread and sharing your ignorant opinion, then I'm not going to be the one to enlighten you.
I have no problem with Bitfinex protecting lenders over traders. I would do the same thing.
But, whatever, fools going to fool.
I don't think you're reading that correctly. Personally I am well aware of their policy. I was crushed by it when they allowed the market to rally almost 30% while I was locked in a short position with trading halted. As someone else said earlier, and as seems implied by the "if we see another raging bull market", we're not only talking about flash crashes. You're calling people fools, but what about a situation that is more than just a flash crash? What happens if the price on other exchanges DOES NOT immediately recover, and the order book can't sustain liquidated positions? You talk as if it that is IMPOSSIBLE. What happens in a crash that does not recover? Or are we just fools for not being perma bulls?
What would Bitfinex do then, in a deep and prolonged bear? Shut down trading for days, weeks? Hold traders indefinitely in leveraged positions? Hold open swap contracts indefinitely past delivery?
But you seem to prefer ad hominem, so feel free to call me an ignorant fool for seeing the possibility of a bear market in which this situation cannot sustain.
Its already been established in this thread that the maximum leverage is 2.5 to 1.
It can sustain a "bear" market. Hell we've been in a bear market for over 6 months.
You don't understand leveraged markets.
You're ignoring the very situation I am discussing. Apparently for you, all bear markets are the same.
7231.17 BTC in bids to $100 and you address none of the points. I'm far too lazy to look into detail, but at median price from there to spread ($350), that's ~ $2,500,000. 12448.98 BTC in bids to $1.00. Versus $26,597,178.54 in swaps.
Thanks, but your complete generalizations and ad hominem don't answer a damn thing. So clearly, for you, it is IMPOSSIBLE for the market to stay under a certain price level for more than x minutes, hours, days. What is that level, and why do you believe that? Or do you think that Bitfinex, in addition to halting trading and rolling back executed trades, will make bidders appear as well?
