Anybody that is not skeptical about 7% weekly returns on anything is just asking for it.
True enough. But crazy returns like that do occasionally exist, though I have never seen them be a "sure thing" nor an ongoing thing. That's just crazy, or cheating.
I was getting APR's in the hundreds of percent for a very short time by lending USD to margin traders. It happened over the course of a few weeks after the latest big gold rush. I was afraid the whole time that something would happen to the exchange and I would lose my (tiny) account.
You might have been able to achieve those returns over a short period of time [edit: posted too early]
by actively investing and absorbing the risks, but would you have offered anyone who wanted you to manage their money a no-effort 7% weekly return on a liquid cash account when you could borrow on better terms from a loan shark?
That's what I said. For a few weeks, there were wild market fluctuations coupled with a lack of dollars to borrow, producing big opportunities for profits, and hence margin traders were willing to pay obscene rates to borrow USD. The only reason it lasted as long as it did is the difficulty of converting from USD to BTC.
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True enough. But crazy returns like that do occasionally exist, though I have never seen them be a "sure thing" nor an ongoing thing. That's just crazy, or cheating.
I was getting APR's in the hundreds of percent for a very short time by lending USD to margin traders. It happened over the course of a few weeks after the latest big gold rush. I was afraid the whole time that something would happen to the exchange and I would lose my (tiny) account.
You might have been able to achieve those returns over a short period of time [edit: posted too early] by actively investing and absorbing the risks, but would you have offered anyone who wanted you to manage their money a no-effort 7% weekly return on a liquid cash account when you could borrow on better terms from a loan shark?
That's what I said. For a few weeks, there were wild market fluctuations coupled with a lack of dollars to borrow, producing big opportunities for profits, and hence margin traders were willing to pay obscene rates to borrow USD. The only reason it lasted as long as it did is the difficulty of converting from USD to BTC.