Marc on Nostr: I don't think bitcoin backed loans are a good idea given the risk to reward ratio. ...
I don't think bitcoin backed loans are a good idea given the risk to reward ratio.
They make sense if you calculate the EV in a vacuum. The problem with risk is that it's not limited to your mathematical models.
Your math might be correct. Risk 10% of your stack. If the price drops by 40%, just add more collateral. **What could go wrong?**
A backdoor in your calculator. That's what can fucking go wrong.
Published at
2026-08-21 18:06:36 UTCEvent JSON
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"content": "I don't think bitcoin backed loans are a good idea given the risk to reward ratio.\n\nThey make sense if you calculate the EV in a vacuum. The problem with risk is that it's not limited to your mathematical models.\n\nYour math might be correct. Risk 10% of your stack. If the price drops by 40%, just add more collateral. **What could go wrong?**\n\nA backdoor in your calculator. That's what can fucking go wrong.",
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