can someone explain to me why I wouldn't always keep USDC and similar trash permanently shorted?
isn't it a scenario where either nothing happens or I win massively if it depegs and fails?
explain
why not short USDC?
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God would make some anomaly happen where 1 USDC is worth $5 for a split second and liquidate you
checked, and yes he would. that is unless he wanted you to be rich, but he obviously doesn't care about money.
>God would make some anomaly
>those trips
checked, my lord
but I don't buy it, is there any actual reason?
That's literally what just happened to all the Tether permabears who have been paying maintenance on USDT shorts for YEARS.
And what was the pair they were shorting Tether against? Yup, USDC. So when USDC depegged, Tether "mooned" and they all got wiped out.
You're going to short a dollar against the dollar? Assuming this isn't a troll thread, what you really mean is to short the dollar against something other than the dollar (like BTC), which is equivalent to perpetually longing that other asset. It's the same reason everyone buys index funds with their retirement accounts because the goal is to beat inflation with minimal risk.
you short usdc against usd
I made a good profit yesterday from a long at 0.96
if you're talking to me (you aren't replying to any post), read the OP more closely: it says USDC
USDC is not USD
lmao, why the fuck would I do that if I'm anticipating some catastrophic depegging where it ends up going to 0, like LUNA?
again, why not short it, what's the risk?
the point is that there's practically zero chance of it going significantly above $1, but it could easily depeg and crash
Look up margin fees.
You dont pay any fees shorting usdc to usdt on bybit. Its 0.0000%
This trade is a 100x if it works out. But yeah fuck bizpussys, they dont deserve this if their dump cowards
>100x
Are you suggesting leverage?
opportunity cost is also a thing schizo
Post shorts.
Oh and for the record, directly replying to the OP post is a 2020+ newfagism newfag
>2020+ newfagism
lmao newfag learned how things were almost two decades ago and doesn't know it's been this way for a decade.
If you think it only began in 2020 that must be when you joined.
>implying I just made this up
nice evasion, B+ for effort.
Sorry ignore this response, I now understand you mean to short a stablecoin against the actual dollar. You're just locking your money up in hopes that it one time pays off. Better off just buying bonds for a guaranteed few % return.
>You're just locking your money up in hopes that it one time pays off.
lmao
pay attention to the times, fren
>Better off just buying bonds for a guaranteed few % return.
lol
lmao even
Are you telling me you expect it to depeg? You understand Circle has reserves to cover 91.75% of supply even in the unlikely scenario that they get 0% of their SVB deposit back. This means your max return on this short is going to be 10%, and that assumes you manage to close it before Circle buys up cheap USDC and it rebounds. I mean, it ain't me but be my guest.
You dont get it. Circle pays 1 dollar per usdc until it doesnt anymore and then ppl panicsell and usdc goes bust. This nonsense of 90 cents is just stupid
I don't think you get it. Circle can buy USDC on the open market just like anyone else. If USDC drops low enough, why wouldn't they buy it to prevent everyone else from performing the same arbitrage and taking money from Circle directly?
>Yeah sure wait a year to lose a few percent bc inflation is higher than the yield. Way better than a 100x in a week
For one thing, you'll be lucky to see a depeg at all, let alone within the week of opening your short. The more likely scenario is you open the short and it sits there for years, then when you finally want to use the money you close the short for 0 profit, oh and you've actually lost purchasing power because of the inflation that you just mentioned. At least in the bond scenario you made money on your position. Finally you aren't going to get a 100x out of this. See
At best you'll get 10% on your initial without leverage. And seeing as stablecoins vary by small amounts, using 100x leverage would get you liquidated. So let's say 50x is a safe leverage, your maximum possible return is going to be 50x10%=5x.
Again, I wouldn't do it. But be my guest
>Better off just buying bonds for a guaranteed few % return
>Better off just buying bonds for a guaranteed few % return.
Yeah sure wait a year to lose a few percent bc inflation is higher than the yield. Way better than a 100x in a week, sure... maybe it doesnt repeg. But atleast you wont loose anything. No harm done. And you dont need to lock up alot of capital. No risks means you can leverage. Or take out a loan in usdc with what you have your capital in as colateral, like eth for example. If usdc goes bust you dont have to pay back anything;)
you could also keep buy orders at 90 cents in case it depegs for a short moment
Because the market can stay irrational longer than you can stay solvent.
Is there even a place to short it? You would slowly lose your position due to funding fees over the months of waiting for a stable coin to go down. Also if it actually depegged the exchange would close your position if you get too much profit. I shorted Luna and got closed out for having too much profit
because of borrowing fees schizoid
Reminder that America became the strongest economy in the world after WW2 ended.
So the moment things begin collapsing they'll goad Russia and China into the next world war.
Remember the only reason America became so strong is thanks to being the only superpower that walked away unscathed.
The destroyed Nordstrom to cripple German. One of the biggest economies.
Next the need to find a way to further weaken china and Russia to further their own strength with directly getting involved.
All they really need is a way to fuck the bank of London then they'll insure their next 100 year Reich.
The strength of the dollar is the strength of its military and global clout