Bitcoin Isn’t Volatile – the World Is


It’s been a horrible year for cryptocurrency. Assets down an average of 90 percent, constant despair and each new day bringing fresh horror. Who’d want to be a bitcoin trader? But when you zoom out beyond the cryptosphere to gain some perspective, it turns out that crypto’s not doing so badly after all. With trillions of dollars wiped off major tech stocks, 2018 has been unkind to investors across all asset classes. Also read: Fear, Loathing and Opportunity: How Crypto Traders Are Handling the Drop Bear Market Takes a Bite out of FAANGs “I’m sorry,” repeated the apology for the umpteenth time. “I’m sorry that this rogue wave capsized our boat.” The wave in question was a spike in the price of natural gas that ruined options seller James Cordier and his 290 clients to the tune of millions of dollars. The rambling 10-minute apology video, which instantly went viral, demonstrates the dangers of selling naked call options — essentially bets on securities you didn’t own. When natural gas spiked by 20 percent in a matter of hours, the author of “The Complete Guide to Option Selling” was, to use crypto parlance, rekt. “Putting it simply — he had to buy very high and sell really low,” explained Palisade Research. Not cryptocurrency: This is natural gas While the case of Cordier is extreme, it demonstrates that sudden swings and crushing losses are not the preserve of the crypto space. In the past two months, the so-called FAANGs — Facebook, Apple, Amazon,…
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