Was watching a video on what was going on, trying to educate myself a bit (my eyes cross for half the video), but how is margin buys legal? Are they not dealing in make believe products of make believe products of a make believe product that represents a portion of a physical company? Could the markets run without margin buying? Would it be less volatile without them? Educate me.
Just think of it like buying a house with a mortgage. yeah the markets would be fine without margin. High margin rates are a sign of a bubble though and yeah it definitely creates volatility because peope are forced to sell when it’s down and they have more buying power on the upside than they usually would.
while unemployment is probably like 10%. completely decoupled from main street and the average American.
It’s the way the system is built to be. Seems that was the largest effect of the lockdowns too. Killed small businesses while the big players raked it in
man i know some guys who put a few thousand into Haven and Etherium last year and its unbelievable. One turned 8500 into 400k, supposedly, with Haven. Another took 100k out of his retirement without penalty during the pandemic, bought 11 bitcoins when it was less than 9k, and now has 660k worth. Crypto has been making people more money in a year than their 401ks and SEPs have in the last 25 years.
It is so dangerous, though. I only put in what I'm fine with losing. I got out in late 2020 with a 4x increase in initial. If I had stayed, I'd be at a 36x increase. But I took the money and ran.
yeah it can shit the bed at any time, and using your phone out and about for purchases and trades is ripe for hacking and losing everything, but holy hell. Also read where if you spent 1k on btc in 2010, you would have over 200 million.
What happens when people start trying to cash out and spend this? At some point there is going to be "peak" buy-in, because the cost of entry is now so high and sooner or later the bit coin millionaires will want to start buying boats and houses.
Bitcoin is wild. 10 years ago I thought it was Tulips. 10 years later, I'm sure it is Tulips. And in 10 years it'll probably be worth a billion dollars a coin.
Selling isn't hard. I closed and bought Apple. There are loads of people who have cashed out on millions, and still hold millions in coin they want to turn to billions.