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Title: BitFinex interest rates for lending USD Post by: badbadmonkey on April 11, 2013, 04:51:37 AM Hi all, have to post here with newbie account, quick sanity check question regarding BitFinex lending rates which are topping 800% apy as I write.
What is the basic economic rationale for this high rate? Who would borrow at such a cost? Even the most financially dubious of alternative sources of credit, e.g. taking out cash on a credit card, costs nothing like this. Is is it just the immediacy of the funds on the exchange? Is it the estimated likelihood of not having to repay the loan if the lendee's net position goes negative before margin calls can be executed? Discuss? Title: Re: BitFinex interest rates for lending USD Post by: salt on April 11, 2013, 06:47:56 AM I can't see anyone accepting rates that high unless they had a gambling addiction.
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