Crypto simply followed the overall market effects. People cashed out with the economic downturn on the profits they made, just as they did the stock market.
Also, practically every asset class has a member that went to zero. The question is what fraction, and how did the others do. If you bought a basket of super-risky assets, over the past years, they went up like crypto and down less.
"decile" means 10%, are you intending to claim that the riskiest 10% of stocks are down on average at least 1000%? That seems like a pretty strong claim that needs some backing...
Options very well can be down more than 100%. It's a leveraged bet and a very common vehicle in traditional finance. So much so you can buy/sell them on platforms like Robinhood.
> a leveraged bet and a very common vehicle in traditional finance
Former options market maker here. Taking leveraged, directional risk with options is textbook reckless trading. That Robinhood found people to swing options and crypto is not representative of traditional finance.
I have an options account with TD Ameritrade. It took a few clicks to get. But it's pretty convenient traditional finance can be redefined when needed.
Sure if you are being pedantic you got me. I was just trying to make the point that there are very risky positions you can hold in traditional finance as well and you can be down thousands of percent.
A long position in an option can't be down more than 100%.
The only commonly traded way to lose more than you started with are futures (not available on most retail platforms) and CFDs (not legal in many markets, including the USA).
Selling an uncovered call in theory (or selling a stock short) opens you to infinite losses - though brokerages are loathe to give you this capability it does exist.
This is true but all that it proves is that Bitcoin is incredibly volatile.
It seems like the pro-crypto arguments end up being circular sometimes (not from the same person but the community).
If the market is good, it's a great investment.
If the market is bad, buy the dip!
If it's unstable, remember all thos people who made money?
If it's stable, well it's a currency after all.
There are so many people who view crypto differently there's always someone there to sing it's praises. I'll still have no idea what crypto is supposed to be aside from a vehicle for fraud.
Crypto is performing far worse than even the riskiest decile of the stock market. Which should surprise nobody.