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.
Related: Berkshire Hathaway’s Annual Beauty Pageant; Bitcoin’s Unlikely Performance Doppelganger; Musk Tweets and Margin Calls; Duke Endowment to the Moon
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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