Bitcoin is a funny combination of my least favorite topic and my most studied sector. It’s my least favorite because the nonsustainability, nonscalability and nonsecurity make bitcoin blaringly unsuitable as currency. It’s my most studied because I’m continually dragged into gold versus bitcoin debates on the gold side, so I take the time and effort to become expert on bitcoin in order not to be outscored by the bitcoin side (so far, I’ve won every debate of this sort).
So there you have it. I’m a total expert on something that makes no sense. At least the expertise is in high demand!
As part of my studies, I focus on the number of ways bitcoin groupies have invented to scam naive bitcoin investors. There are the usual scams (pump-and-dump, hack-and-steal, simple frauds, coordinated crypto-bots and many more). Yet every time I pat myself on the back for having comprehensive scamming expertise, the bitcoin gangs come up with a new way to steal your money.
This article highlights the latest. A “bitcoin whale” with a huge (probably underwater) long position tried to wipe out losses and generate some profits by making a $400 million-plus long bet on bitcoin using futures listed on the OKEx, a Hong Kong-based exchange. Predictably, bitcoin crashed and the trader (ID 2051247) lost a fortune and refused to make good or meet margin calls at the exchange.
The exchange itself had inadequate reserves and had to “claw back” the actual losses from innocent member accounts that had nothing to do with the scam. As cowboy card players used to say, “Read ’em and weep.” The bitcoin whale bet big, lost, walked away and left the ruins to be cleaned up by the bystanders.
One more way for bitcoin scammers to take your money. I’m sure I’ll find a new one by my next column.
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