strong sell
Bitcoin Collateral Risks Ignored Despite Past Crashes
I'm witnessing a repetitive pattern among people who seem unlearned from past financial crises. Previously, we saw two major collapses: one during the dot-com bubble burst and another with the mortgage fund bubble, where credit was irresponsibly lent without solid backing. Now, there's talk about issuing loans secured by Bitcoin. However, no one seems to consider what will happen if Bitcoin's price drops by 70-80%. This kind of reckless leverage is bound to end badly once again.
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AI Analysis
The trend of using Bitcoin as collateral echoes previous financial mistakes, especially given its notorious volatility. Historically, crisis episodes like the dot-com crash and the mortgage bubble dem...
AI Recommendation
My advice is to exercise caution with any financial products that involve Bitcoin collateral, especially if they leverage the asset's volatile nature. Investors and lenders should evaluate the risk of...
Disclaimer
The AI analysis and recommendations provided are for informational purposes only. Any investment decisions should be made at your own risk. Past performance is not indicative of future results. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions.