Post
Topic
Board Speculation
Re: This Bitfinex Credit Bubble cannot end well
by
thezerg
on 27/06/2014, 14:58:53 UTC
Guys

Since when so called "moderators" are starting FUD threads?

Cui prodest?

Ask yourself this simple question and if your IQ is not lower than your shoe size you'll come up with the right conclusion.

Have a good day and a great weekend

Giancarlo
Bitfinex Team


I have to disagree about this being FUD here.  The amount of longs, shorts, and the going rate are important metrics.  And I don't necessarily even think its bearish to have this extremely high level of lending... but it may cause local flash crash on your exchange as a single person attempts to harvest this leverage.  Its making me think about putting in a lowball bid, except bullish. 

On the lender side, clearly if you want to avoid BTC volatility but trust BitFinex as an exchange then offering USD at these loan rates is an awesome investment.  Its interesting to imagine who fits this lender profile:  For example various "money market" funds could probably loan via BitFinex but not buy BTC (without breaking its published investment profile).


PS: None of this reflects on the BitFinex exchange.  You are not responsible for responsible investing.