You are viewing a single comment's thread from:
RE: Bitshares Price Rising Because of Loan Rates?
Bitshares went up first and then the loan rates rised, but I'm positing the high loan rates keep the price increasing because people want to buy more to loan it out at a high rate. It's a positive feedback loop now
Yes, you get a feedback for awhile... People see the high rates, and maybe buy some bitshares to lend out. This creates demand for the coin.
Remember though they are lending to the very people who are expecting a drop.
Successful investors buy low, and sell high. If you are buying to lend out, you are buying high and will be paid back when they are low again plus some interest. Someone who is shorting after a big rise in price is selling high with a plan to buy back when they are low...
Yea, it's the definition of a bubble. Spirals upwards until it pops.