This discussion features Rob and Simon Dixon, a Bitcoin OG, delving into the complexities and potential pitfalls of Bitcoin-backed loans and Bitcoin treasuries. They revisit the Celsius debacle, highlighting how it lured investors with promises of yield and loans, ultimately collapsing due to fraud, mismanagement, and interconnectedness with other failing crypto entities. The conversation emphasizes the dangers of over-leveraging, chasing high yields, and the systemic risks within the crypto ecosystem.
The discussion then shifts to the current landscape of Bitcoin loans, with companies like Leen Lava, Lava, XXI, and Coinbase offering these services. Simon expresses concern about the potential for history to repeat itself, warning that a complex web of financial manipulation, stablecoin instability, and cascading liquidations could lead to another market crash. He stresses the importance of self-custody, avoiding excessive leverage, and recognizing that "long-term it's not rigged", while cautioning against the temptation to overcomplicate Bitcoin investments. The key takeaway is to "do less and make more" by simply stacking Bitcoin and avoiding risky financial schemes.
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