Search results

No. You're just left with a market made up of the people who are actually interested in taking ownership of the thing being sold rather than middle men. Liquidity is BS. Liquidity is me placing a buy order and having it shoved into exchange A so that market maker can front run my order in...

Citadel is the last thing I would want involved in a new exchange. Someone who currently uses their special position in the market to milk money out of regular people (payment for order flow) is now building an exchange? No thanks. We need a new exchange focused on serving the needs of...

Except that if interest rates are falling he'll want to get into stocks anyways. To me, locking up you money in long term bonds when the yield curve is inverted is ridiculous. https://www.ustreasuryyieldcurve.com/b/NUbyby It amazes me to see so called professionals still talking about things...

What a clown show. You would think an organization like this would have multiple independent internal safeguards to prevent a scenario like this. Where were the circuit breakers?

Maybe you have delusional idea of how much labor and resources go into building a house? Don't you think the people who build houses should be able to afford to live in one? Right after we discover cold fusion and find the philosopher's stone. You're assuming a ton of things work out exactly...

This is actually a major problem with Bitcoin becoming the yardstick for price. You'd have to be bonkers to take out a 30 year mortgage denominated in Bitcoin. How could you set the rate? Both sides would be terrified of rapid movements in Bitcoin's price cause them to go into the red. The...

Right now they can play games where the stick your order into a slow pipe, run out and buy to front run you on another exchange and then turn around and sell it to you at a new higher price. They never plan to take any actual position in what they are buying or selling. They are "market...

The solution is to build a new market. My new market would have: Instant settlement Turn based trading where all orders must be valid for at least 15 minutes Right now the people really taking you for a ride are the HFT "market makers". When was the last time Citadel lost money? Let me...

Which is wrong. Let's leave the crazy magic of turning liabilities into assets for the FED :sneaky: You're a retard if you loan money at zero percent. Any investment has risk. If you're not being compensated in some way for your risk you are a fool. No it would be like looking at the...

This is a silly way to value Bitcoin. It essentially assumes that everyone is going to sell all their productive assets and use them to buy Bitcoin, which produces nothing. It's useful for placing a cap on the possible price of Bitcoin assuming mass hysteria, but practically it will not...

So do it instead of assuming how I'm doing, try to give me a model for Bitcoin's price that's driving factor is anything other than speculative mania. The big point with the hedging discussion is that being a hedge for something has a specific definition and can be quantitatively evaluated...

Boring attempt to put words in my mouth. Again. Owning Bitcoin gives you no claim on the network. This is not a hard concept. I'm not saying it's going to shutdown tomorrow, but you happening to own some Bitcoin gives you no particular power to stop it if it did.

Nope. I just use terms properly. This is one of the things the crypto crowd has a huge problem doing. Nope. Value investors also look at things like price to book ratio. Like I said, Sharpe ratio is a ridiculously over simplistic way to look at something. Making decisions based on a single...

I think you're confused about what a hedge actually is. https://learn.robinhood.com/articles/VKopWd6tlkX0Z52ABe8fw/what-is-a-hedge/ It is completely possible and even reasonably likely for inflation to go up and Bitcoin to go down. It has happened before. This is just investing 101 kind of...

This covers it quite well. https://blog.amberdata.io/bitcoin-sharpe-ratio-the-risk-and-reward-of-investing-in-cryptocurrencies I'm not a huge fan of a one simple ratio. I always check things like price to book before buying. Bitcoins p/b ratio and p/e ratio of infinity are not things that...

Until they lose it all. Like Livermore. Partly true. But what's more true is that if you doubled most Americans income, they would immediately figure out ways to spend it. It's a learning activity. I knew a bit about bubbles before Bitcoin was being treated as an "investment". Now I know...

Not really. There were and are other network protocols. If suddenly we found out TCP/IP was patent encumbered and cost $50k a seat people would switch to something else. Similar to GIF vs PNG. This piece I will agree with. I believe the is some value associated with traffic volume and size...

But he did have the capability to know how many ships they had, and probably also how many were under construction, if any. Hell, he could have just asked around at docks and shipyards. Given the valuation of the South Sea company he should have been tripping over people if they really had a...

Issac Newton was unarguably a genius... He still fell for the South Sea bubble. Being smart is not enough. I'm from the school of "you have to do some work and place a value on what you are buying." From my point of view, it's going to be the Netscape navigator of cryptos. FOMO and herd...

What did I get wrong? This is just about the worst possible way to rationalize buying something. Sure those sub-prime CDS look a little risky, but hundreds of companies are buying them! Sure that dot com business has no real business plan nor significant operations but hundreds of companies...