This is a very interesting article

He discusses the same topic in this podcast:

My 2 sats:

I’ll admit to having some close margin calls during the last drop in prices, so I can personally say that Andy Edstrom’s warning is very real. Bitcoin is still far too volatile, and while I love the new DeFi/CeFi options, margins, futures, longs and shorts we have available in the crypto space, it’s still far too early. The latest drop liquidated something like 9 billion dollars in long positions in under 12 hours. More in the span of 24 hours. That’s insane. People truly got rekt. And while these were big investors and hedge funds and we don’t give a shit about them, we do care about you.

So, the non-financial advice is to avoid margin, crypto loans, LTVs that are more than 25%, futures and short or long positions. Please consult your financial advisor and stick with HODLing.

I sincerely hope none of this plays out. I would much prefer to see a steady march upward. But for readers who will have made fortunes as Bitcoin breaks to six-figure prices, just remember that you can still blow it. Don’t be the proverbial man who drowns in the river that was only five feet deep “on average.”

Be robust. Gird yourself for tougher times in Bitcoin. On the road to long-term financial freedom, unlevered cold storage and self-custody are your allies. Hold them close. You may need them.

Andy Edstrom


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