Re:The Bear Case for Crypto, Part II: The Great Bank Run
by dahdum on Monday November 27, 2017 @05:09PM
(#15792025)
Polo/Bitfinex are peer to peer lending, so the exchange isn't taking the risk. I'm not sure about Coinbase but I vaguely remember it was outside institutional money funding the margin.
Derivative markets like Bitmex use a form of socialized loss to remove the risk.
Derivative markets like Bitmex use a form of socialized loss to remove the risk.