Crypto Is Trying Out Traditional Finance’s Failures in Hyperspeed, but It’s Going to Be Fine

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Although it was birthed out of a recession, bitcoin has never lived through one. It will, at the very least, get interesting as things get tougher. gckaloudis writes in this week’s Crypto Long & Short newsletter.

The yield curve inverted this week . The yield curve inverting is often treated as aOK, but what does that mean? In plain English, the U.S. federal government sells bonds, or Treasurys, to investors like you to. Those Treasurys, in turn, pay you an interest rate or yield over a period of time. At the end of that period of time, the original amount is returned to the investor. If Treasurys sound like loans, that’s because they are.

The amount investors would expect to make on these Treasurys is higher the longer the loan is. That makes sense. Your money is locked up longer, so in exchange for that risk you get more yield. So then if you plotted the length of the loan on the x-axis against yield, you’d get a logarithmic-looking growth curve.Except when the yield curve inverts – which is what happened. Now, 10-year Treasury yields are lower than 2-year Treasury yields.

 

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gckaloudis I'd like to know how much usdt it will cost in a week

gckaloudis

gckaloudis Let's go fucking Brandon! Lucky for us, Bitcoin will outlast this piece of shit administration we have going on...

gckaloudis Yes

gckaloudis Oh you mean 'left? '... Yes sure. It makes total sense now. 😌

gckaloudis It’s lived through sector recessions. There were plenty since 2012. Living through a global shock seems far more significant

gckaloudis It's dieing away

gckaloudis Curious if anyone's tried this?

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