'Big Short' Investor Michael Burry Warns of 'Mother of All Crashes' — Says Crypto's Problem Is Leverage

submitted by Drewski from news.bitcoin.com

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[–]Aaronftw 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (0 children)

Anybody who is trading bitcoin using leverage is rather silly in my opinion -

The exchange can wipe out your leveraged position and take your cash simply by printing a trade much lower/higher than the current levels. We frequently see that exchanges 'go down' and then the price spikes up and spikes down.

That said... I do NOT believe the majority of participants in crypto are leveraged - whereas EVERY housing market investor is leveraged (10% down, and a 90% loan). And almost all institutional investors in stocks and shares are also leveraged. (hedge funds get their leverage from prime brokers)