MicroStrategy: For Whom the Margin Calls
Investors – and the Feds – need to focus less on specific stories like MicroStrategy's Bitcoin exposure, and more on how big the systemic risk picture may be for all of us.
The cryptocurrency crash of the past few weeks has treated investors to a (very expensive) three-ring circus. TerraUSD, an algorithmic “stablecoin”, lost its dollar peg, causing a chain of events many blame for the current meltdown. Tether, the largest (and asset-backed stablecoin) had also slipped, but found its way back to $1…after successfully processing $3B in withdrawals in a single day. And the government let it be known that it’s not thrilled about Fidelity’s decision to push Bitcoin into its 401(k) offering.
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