This article conflates:

(1)  What rate traders are willing to pay to leverage or short BTC

(2)  The chances of catastrophic exchange bankruptcy

(3)  All relative to an artificially low and manipulated US treasury rate (not free market since 2008)


It's like saying because the Stock Loan Rate for many NYSE stocks is 40% or more...
That the NYSE has a 60-80% chance of going bankrupt relative to the 30 day Treasury rate...
Good for an "F" on your Economics 101 mid-term.

When Bitfinex refers to risk...
They are referring to counterparty risk between traders that borrow and traders that lend...
Which is strictly a function of their margining alogorithms... and probably close to zero.

To analyze Bitfinex bankruptcy risk...
Once must estimate how much money they are making relative to deposits...
And understand how they make most of their money (hint: trading against order flow).

Also, one must understand the Crypto Space one is dealing with...
Comparing anything here to the TBill market is absurd...
It's like trying to analyze junior gold stocks in the Pink Sheets using bond market metrics.

Crypto is a place where securities spike 200% or 300% or 1000% in one day EVERY DAY...
So a DIVERSIFIED Crypto portfolio expects to take a near 100% loss on a position several times per year.