Jon Quast

I think a lot of what we're seeing right now in Bitcoin, besides the normal ebb and flow when it comes to cryptocurrency, there are a lot of forced liquidations right now with Bitcoin.

And I don't know if we can put a number on it exactly.

If you borrow money to invest in Bitcoin and the price of Bitcoin goes down, eventually, someone is going to make you sell some of that Bitcoin or deposit more money into your account.

You've got to show that you can cover what you owe.

Exactly right.

They're putting that risk.

They're keeping it on you.

And so, yeah, if you borrow money to buy Bitcoin and it goes down and you can't cover in some other way, you're going to be forced to sell that Bitcoin.

In fact, you don't even make the choice.

They make it for you.

And so we're seeing a lot of that.

And it just it blows my mind.

It's incomprehensible to me that there's still so much leverage in the Bitcoin market.

I just don't understand it.

If you want to use Bitcoin as a peer-to-peer way to buy and sell things, by all means, go ahead.

If you want to invest in Bitcoin, I'm happy for you.

If you're one of these people who believes that Bitcoin is the future and the U.S.

dollar is going to zero and you want to put everything you have, every excess dollar into Bitcoin, I can understand that perspective.

It doesn't matter if it's cryptocurrency, stocks, whatever it is, usually investing with borrowed money is a bad idea.

Because even if you're right with your long-term forecast, you can be 100% right.