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Re:Shorting Tether for Fun and Profit by csomar on Sunday January 08, 2023 @11:30AM (#34300450)
I don’t get how everyone misses this part. Assuming counter-party risk is 0. This is still not a risk free trade by any mean, even if Tether collapses at certain point in the future.

At such high interest rates, you need to close the deal soon otherwise you are bleeding your capital really fast. The interest compounding also means you are losing your money in a compounding fashion.

If the author started shorting Tether 5-6 years they’d never turn cashflow positive and they’d be nearing bankruptcy where they lose all their monies.

Re:Shorting Tether for Fun and Profit by williamsmj on Sunday January 08, 2023 @11:38AM (#34300530)
They are investing $250. The author realizes that this is not a great trade. It’s a proof of concept.
Re:Shorting Tether for Fun and Profit by martinko on Sunday January 08, 2023 @12:18PM (#34300955)
not much of a proof of concept then
Re:Shorting Tether for Fun and Profit by SilasX on Sunday January 08, 2023 @02:02PM (#34301969)
Did we ... need proof of this concept? Here's a thread just on this forum, from over a year ago, explaining exactly how to short Tether via the trade the author is "proving":

https://news.ycombinator.com/item?id=28796356

Re:Shorting Tether for Fun and Profit by iamben on Sunday January 08, 2023 @02:34PM (#34302284)
My take was this is less about proving a concept and more a nerdy/amusing/I don't mind losing money way of saying "I strongly believe Tether is a house if cards that will blow over at some point".

Hence the last line - "for the eventual pleasure of saying “I told you so”."