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/biz/ - Business & Finance

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11012619 No.11012619 [Reply] [Original]

Undeniably, margin/derivative trading amongst Crypto users is the biggest forming trend right now. Suddenly there are broke people in control of up to 100x their position, thousands of BTC locked up on and illiquid on some shady site in Seychelles. Influencing the market and triggering artificial trends and bubbles. I wonder how this will play out.

>> No.11012715
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11012715

I pulled this from another anons post. Doesn't it at the very least make you jelly anon? To be able to make 500%+ in a few hours just by being right on the market movement? Even if you know its risky? Many more normies and gamblers will be drawn to it and unironically spark a bubble while losing money. A good share of them will be lucky and vocal, attracting more more normans.

I can totally see it happen

>> No.11012792

Yeah it honestly sucks, people are betting on the price rather than buying or selling the actual assets. This will either kill crypto or it's just a mid term trend that will die off when we get enough buying pressure. The thought of BART SEASON for the foreseeable future makes me nauseous

>> No.11012982

>>11012792
this is literally exactly what happened to silver.
silver has a market cap of only $20 billion, but the total derivatives market surrounding it is worth $5 trillion

>> No.11013097

>>11012982

I don't think its comparable to silver or gold. With Bitcoin the supply keeps shrinking with every single margin position whether short or long. There could just as well be a accelerated reversal caused by leveraged trading as more bulls than bears get behind the wheel. The incentives are both up and down here.