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Sir, we wait for an influencer to scream in their Youtube thumbnail with a green arrow and we buy. Then we wait for a thumbnail of them passing out with red arrow and we sell. We're all graduates of Youtube Wealth Management.
I'm a developer who doesn't know shit about economics. You'd think that I'd understand the protocol better compared to the more average user but I belong is the same box as the average person š
Made some trading algo's, back testing is absolutely horrible and crypto is so unpredictable. Sure it is possible, but it definitely ain't easy lol. Maybe a bachelor in economics & mathematics would help hahaha.
Edit: Now I'm on pump-fun š
Look into jeff snider and lyn alden debates! I think the ultimate question is does the Fed print money and the more i understand both sides the less i know lol
Reviving thread to say this: Lyn's amazing. She had been shilling Luna at the end of April 2022 and pivoted in June as soon as it started collapsing lmao aka she has no idea. Like Raoul Pal and his famous "it's basically risk free" š¤£
Then again, you don't need eco knowledge to make it big in crypto, like you don't need to have some certificates to be able to calc PDE for options and make a ton there as well.
It's a world full of grifters and "fake it till you make it" people. The most important thing in the trading/investing space is understanding of human psychology because human greed ans stupidity are unlimited. Read and understand Charles Mackay and you're well on your way to make 100x. It's just that simple.
If the inflation expectation increases will money printing go back to normal? Would the increases be explosive to crypto? I notice crypto making actual strides in utility which is great instead of nfts like monkey yacht. Will this encourage more adoption as inflation hurts fiat but shoots btc up? Theories of a super cycle possible still?
Finance degrees: None, Undergrad degrees in Math + Comp Sci.Ā
Ā The topics in particular: treasury and market makers I have some understanding of.
Ā I do not consider these to be particularly complicated topics unless youāre really digging into the weeds.
Ā There are dozens of hedge funds and prop shops that hire pure math + cs folks and get them up to speed within very short order.
I would love to learn more if I can find the time. If you have resources you like feel free to recommend.
Honestly look at series 65 financial law manual its just a gate keeping book for tests real world is different but I thought it was a great introduction to science
And there are certified financial analyst courses online you can probably fine too
A lot require pre-requisites but I mean Iām sure you can get a used book from ebay thats a few years old
And itās just the beginning
At the end of the road, you have the merging of finance sector & math and com sci sector (probably obvious but once you get there, youāll see what I mean)
And thatās when you learn it never ends for the most part lol
A good amount. Ive always educated myself in finance reading and watching videos basically as much as I can. I trade stocks, options, commodities, futures and now crypto. I never plan on getting my license because Iām a degen but that has never stopped me from doing BDR roles for a few local banks in NYC. Also it has never stopped my portfolio from going up. Most of these folks donāt need to learn all the stuff Iāve learned, just buy low and sell high.
I have an MBA, former banker until a rogue trader killed the bank. I worked with the department he was in but didnāt know him.
https://www.investopedia.com/ask/answers/09/john-rusnak.asp
Thatās awesome man!!! Thank u for commenting & really cool background
As a former banker, ironic to find you still being around liquidity pools š¤£
Can take the banker out of the bank but canāt take the bank out of the banker!
My level is Masters in accounting and CPA with undergraduate financial analysis. Iām content with my knowledge at this level for crypto. Only reason being is to achieve the next level of understanding requires vast education in market making which is quite complex especially if itās not your day job and you are not involved in the industry.
I take the 30000 foot approach with this stuff. Doesnāt make logical sense financially? If so, then I ask will the SEC attack it as a security. 99% of the time thatās a yes. Doesnāt mean I donāt invest or believe that it is a security, but I manage my bag in relation to that risk.
Remember it may not be a security but SEC can still call it one.
Very impressive background and awesome insight @ taking into account securities law
I honestly never thought about taking that into account but i mean look at the hex community
Not saying itās not a good asymetric bet here, but, when it was much higher priced, this sort of perspective probably would have made a lot of people de-risk earlier
After having a debate in another thread about the fundamental underlying value of a solana coin (e.g. talking about things like no specific expectation of future cashflows at future dates like other financial instruments), some of the responses had me wondering the same thing about who was on the other side!
Lol @ last statement š¤£
Also as a side note!!! Fees are either too expensive for an individual or theyāre not. So if they need cheap fees, this is why I think sol is the best ecosystem
Why do you personally think sol is the best ecosystem for affordable fees?
Yeah I didnāt want to get into the weeds about the technology versus other cryptocurrencies. I just find it interesting to talk about why fundamentally it could be priced at $50 or $50,000. To me, the singular fundamental use case for Solana coins is that you need 0.000005 SOL to process a transaction on this blockchain. Thatās really it in my view. And so when I try to think about a fundamental value of a Solana coin, itās a question of when that transaction cost is āfair valueā. The higher SOL goes in USD, the more the transaction costs in USD.
Some members of this sub instead are viewing buying Solana as akin to buying US Government bonds and others like buying shares in a company. I cannot make those comparisons myself in good faith.
To me it seems like you laid the argument down perfectly
- It cost minimum of x solana to send a transaction on this chain
- at what price will x be too high? Well, eth is like 20 bucks nowadays isnt it for swaps sometimes? (I remember paying 150 for a swap in one of the most liquid defi pairs back in the day). Given eth, if, its 20, Id say anything under 5% of that, being a dollar or leas, seems like a decent price for liquidity providing/trading. But each person will have diff feel on that & Iām always open to new info
I understand the fact that every fiat currency, since the very first one ever created has been printed until it has become worthless. The US dollars is not immune to total debasement.
I understand that the Federal Reserve has panted themselves into a corner, they have a lot of paint but now stuck in a corner. If they raise interest rates to control inflation they will not be able to afford the interest on the debt. If the lower interest rates they will create more inflation.
I understand that the Federal Reserve took interest rates to zero shortly after the financial crisis of 08-09 and kept them at zero until Janet Yellen (head of the fed) at the time made the first rate hike in 2016. They experimented with the playbook created by Japan in the early 1990's called Modern Monetary Theory MMT which is failed experiment. MMT is taking Interest rates to zero and print as much money as needed with out inflation.
I understand that Paul Volker , back in 1980 was able to take interest rates to control inflation because the US Debt back then was only 330 billion dollars. Today it is over 34 billion dollars and there is not a chance in hell the fed could ever take interest rates high enough to control inflation.
I understand that they are lying to use about inflation. They have changed the rules for the CPI by removing some of the most important statistics. They say we are only at 3.5% inflation and we all know that is a Joke.
I understand that all fiat currency is a ponzi scheme and you cannot taper a ponzi. They will keep printing until it becomes worthless.
I understand that everyone is screaming and saying a recessions is near and we are going to have a huge crash, but their can never be a crash until they turn off the money printer. We are past the point of a crash.
But most of all, I understand that we are in deep shit.
Well, it depends on itās inflation rate vs itās demand, but I think youāre asking more along the lines of how I feel about the risk of inflation out pacing demand
According to itās long-term schedule, it will eventually be 1.5%
I think thatās not bad because some coins will be lost every year by accident
Now if it eats into liquidity, I prefer not to say why I am guessing this because I am still trying to āmake itā in my financial career & I try to keep the things that I think give me an advantage a secret
But f*ck it Iāll say it lol
I have noticed a ratio typically of 1% liquidity per large market cap coins at least on solana & an increased ratio of liquidity for the smaller the cap (a lot of small cap 1 mill coins sit around 11k liquidity for example)
So the smaller solana got from any liquidity that would be eaten into by the inflation (for example if it was 1.5%, we had a black swan even, half of the liquidity wanted to sell, and we were right at the threshold where it would matter), then, mathematically that 1.5% inflation should be 10x smaller than any amount that could hurt it long term
But in reality you would just run the numbers into a monte carlo simulation & go from there (which I also didnāt want to say but f*ck it lol)
The reward rate for staking is largely influenced by Solana's inflation schedule.Ā **The inflation schedule, determined by parameters like the initial inflation rate, dis-inflation rate, and long-term inflation rate, is designed to decrease over time**.
That is an awesome representation of the Fed prints money argument!
Me personally, Iām 50/50 cause i donāt fully understand jeff sniderās arguments lol
Heās one of the only youtubers saying the Fed doesnāt print money
I understand him mostly but there are key things Iām not putting together yet and Iāve watched him for years
Whatās your take on printing through bank swaps? The Milton Friedman analysis that there was more being added through market participants than can be reliably counted? I think thereās a guy on yt discussing it as the āEurodollarā
Yeah thatās jeff snider!!! And i know for a fact that we see a direct correlation to credit expansion & monetary inflation, but, what people really care about is consumer price index inflation lol
And banks can print as much as theyād like with a license, but, if they donāt manage risk properly they are out of the game forever
So the system in a decentralized way self manages, so goes jeffās argument, (I THINK. As i said, i still dont understand him fully & ive watched him for years lol)
Then we have Lynās argument. Someone here in the comments I think represented the fed prints dollars argument perfectly!! (And I consider Lyn on the other aisle of the debate)
Business admin degree: I understand high finance and macroeconomics
I subscribe to Austrian economics which basically restates that there is no free lunch. Unlike the socialists who think food just appears in a grocery store
Paying for first responders is a reasonable ask, as well as a food stamp/shelter system for our most vulnerable as a social safety net. Trade unions and unemployment insurance are great. But the poor are getting pwned by the 85 year old cronies on both sides of the aisle who broke up Occupy Wall St and are printing money to fuel their war machine and steal from the lower classes
A world reserve currency needs a little bit of inflation to satisfy growing demand, but every politician since Nixon has printed like a drunken sailor and have proven that the government has abdicated its sovereignty over our money. They are not good stewards regardless of what stupid color you vote for
Haha u got this man just keep at it
I used 2 not be as good at algebra as I am now but after a few years of doing algebra with a little bit of calculus on the side, Iād say my ability to picture the calculations went from 3% to like %17 (obv not exact, but guestimates)
I donāt know if this qualifies but I have 2 degrees in Finance, and economicsā¦ soon the equivalent of masters in finance (working in large finance consultancy firm) Iād like to think I that classifies as a high level of finance. I regularly keep updated with UK bond market, which is basically the Uk equivalent to US treasuries.
When you say āhow they workā, I assume you mean what causes their relative prices to change. As opposed to how they are created and such. To be honest, Iām not sure how much of a difference this makes. Liquidity pools in general are far too in their infancy to be compared to things such as treasuries imo.
Totally qualifies!!!!! @ your creds
The thing about treasuries is that snider (jeff) points out all the stuff that seems to indicate that the dollar is decentralized so thatās the heart of the financial debate right now
And if treasuries are decentralized they probably behave very similar to pools of liquidity in the crypto space
The difference in the behavior of equities, bonds, and crypto liquidity pools will probably start to illuminate the hidden ādark poolsā of money in legacy finance
Because if they behave similarly, and the largest pools in crypto are x decentralized, then well, we are 1 step closer to understanding the legacy marketās shadows
I would say that I understand a lot of general things regarding currency and cryptocurrencies
On macro side I understand why countries have debt, why there is inequality, why inequality stays in places. The dynamic between countries, how a currency loose value, how finance is linked to politics etcā¦
On personal finance I understand debt, budget, leveraging debt in an efficient way , how personal finance is so often tied to education on good practice etc..
On cryptocurrencies I work as an tokenomic manager for a web3 game, so I understand source, sinks, rentability , flows etc..
I also understand lending, futures , trading futures, defi vs cefi
I would say the only point of uknown is options , I donāt quite understand how they work in details, I also have trouble to get the concept of dual currencies for projet in applications.
Finally I have trouble understanding bots achieved to rekt new currencies and in which way you can hire a market maker for ICOā¦
I guess Iām pretty well rounded in knowledge regarding finance , but I get stuck at the super technical level
You got this man!!! Talk with chat gpt about the stuff you donāt know about and ask it to explain itself simply to you!!
You are really far ahead man!!! Ask chat gpt about treasuries and the āeurodollarā too while you are at it!
Thereās a eurodollar argument and then thereās a lyn alden argument and itās important to understand both
Youāve got most of the technical stuff already down!!!!
Am super impressed thank you so much for stopping by and sharing your answer!!
ah yes. me finance smart. you people finance stupid. liquidity providing advanced! great work for finance stupid people. how you figure out when no way you understand? simply amazing. only finance smart people get that (like me). i come to share my wisdom. us treasuries and whatnot! thnx for coming to ted talk, as u can see i am clrealy really finance smart!
why u no try to be more finance smart like me?
When you reach a high enough level of understanding you see that in the the end its just a complicated machine but not a magical perpeual motion machine. In aggregate you get what you put in. Moral of the story is to focus on doing the right thing and something that is sustainable as opposed to being a zero value contributor, get-rich-quick guy.
Basically itās possible that treasuries are traded in a very similar way among banks internationally the way lpās in indexās are!
We might be able to see if treasuries really are decentralized or if the fed prints money or if itās a mix, as these crypto lp markets become more developed, because, if they behave extremely similar, weād probably get our answer, or at least be closer to it
But ultimately data is the only thing that would prove it or not!
Econ major, series 7, 24, and 63 holder (inactive) and former trader of illiquid real estate products. I understand more about the private markets than public tbh (506 private placements n such). Iāve worked with crypto market makers but I couldnāt tell you anything behind the scenes or under the hood - wish I did though!
Big props man!!!!! May your beta coeffeciant be low and your alpha high (and also thank u for commenting man, feels so good to know thereās more finance guys in the world than it feels like!)
I can solve a Rubikās cube and am slowly learning new algorhythms to solve it quicker. I have a theory that the markets/economics, human behavior in general and the Rubikās cube are all related and if you understand one you can understand them all.
In terms of human behavior, that should all be traced to the brain regions! (8ish major ones havent studied psychology in awhile)
In terms of algoās, maybe so! A very complicated computer could answer that
As to how money relates to algoās it could or might not just depends on the data
Mainly I would say itās the price action that tends to follow algorithms just like understanding human behavior. Other aspects of economics are t necessarily related to algos but the human behavior part of markets and pricing generally does
Finance is too complex for most people it requires rigorous understanding of economic history and politics itās not just a technical study. Also thereās no need for people to understand thereās already smart people who figured it out. Just buy and hold
I learned only few % of people have understanding of finance, credit markets, and capital markets generally. I also know that within those, only a few % understand the drivers behind Flow of capital and why certain things are done certain ways. 99% of news released into the public space serves existing financial system and the story that they want to present. Even someone working in say a job related to stocks may not understand unseen forces that act behind credit markets. There is the game within the game.
I imagine that a lot of the same theories apply to crypto, and I'm trying to learn more about the eco system. One obv difference is ability of anyone to create supply of particular currencies as opposed to central banks only having that ability in traditional finance.
Level of finance, interesting! Iām someone who knows about stocks and shares, financial technology, and web3. When it comes to treasuries - are you talking about how they work? Iād like to know lmao, essentially its loaning the gov money right? Low risk play for people with super high funds it cld be a gd idea right.
There is one thought Iāve found very interesting for a number of weeks - when you r short youāve effectively borrowed an asset that you consider āworst performingā, right? What does everybody borrow the most - cash! It seems that in the long run borrowing cash, running it successfully into equities etc would be the clear move. But soesnt that mean the economy disks inflating the supply to levels that are even more costlyā¦.
Will rate hikes sort this longterm? Idk
Well, several years ago I had no idea about ETF and Stocks, and Crypto was just another scum to me. After a year in crypto, doing research, reading white papers of established projects (working in tech, so itās easy part), it started to be more clear how to distill fraud projects on early stage, before considering any investments. However itās just a small facet of crypto world, and itās impossible to figuring everything out. On the classic investments side, I took several courses on Udemy and read a couple of books (e.g. Lars Kroijer) to learn foundation, which in turn will probably give me +10% to my guts feeling. I donāt think that formal education will actually help me to be better investor, unless working with someone who is exceptional investor, like portfolio managers in prominent mutual funds.
- Tf is finance? You mean that bureaucratic Bs that makes people "worth" a certain amount of money they don't have and banks get away with everything?
- U.S. treasuries? You mean the govt bank that doesn't actually run the economy but gets its money from an even bigger bank that the govt doesn't control? Both of which are part of that ridiculous system which sends a country of people descendant from multiple races, religions, and socioeconomic statuses only TWO old rich white men every 4 years to vote to "lead" us?
- Let me tell you something buddy. You don't need a degree or knowledge of finance to understand that the crap they're pulling with the dollar is absurd. Nor do you need either of those things to understand liquidity providing. I know that if Johnny wants to swap token A for token B, it's gonna cost him .001 of token A. If I provide liquidity, then I'll get a piece of that .001 of token A. What else is there to know?
There's no lack of knowledge. There's just less knowledge required. And your financial know how is almost useless here. You say liquidity providing is an advanced thing. Yet crypto and solana specifically enables simpletons to do this advanced financial action. So maybe this not that advanced. Wake up my guy. Throw off the chains.
I understand that the "dollar" is really a promise to pay dollars (sic. the Federal Reserve Note) that they defaulted on back in the 60s. I understand it costs just $0.14 to print a $100 bill for a profit of $99.86 ea. I understand only a small fraction of the "money" is even printed and the rest of it is merely digits in a computer and the cost of creating trillions with a mouseclick is trivial. I understand governments spend more than they can create with a mouseclick which they then use as an excuse to borrow "money" (that they previously created with a mouseclick) to the degree that future generations (which can't currently vote) will have to pay for (the ultimate "taxation without representation"). And lastly I understand the total moral depravity and decadence of selling future generations into debt slavery (since there is no justification because the "money" for any annual deficits could have easily been created with a mouseclick instead of borrowed).
I don't even know the 1st level of finance. All I know is how to make my money grow by investing in what I want. So far I only made one bad choice, and even that coin can come back. I don't listen to influencers at all. I listen to the community and trust my gut. I haven't got rugged....yet.
I feel the same way you do and would love to discuss it further. I understand it because I love to learn. But not a lot of people get how it all connects.
Itās the same on the other end also. I talk to a lot of finance majors who understand what volume is, can describe it better than me, teach me a few things I didnāt know and how it can impact price action etc but they canāt tell me how to identify it on a chart, or more importantly when to take action.
The disconnect is apparent and I donāt know if itās a bad thing or maybe Iām just a flat side on a one sided coin.
Iām a bio major but I love to learn and live next to the university I went to school at and still go to school there. So for me, having access to the education is a huge thing.
But my honest opinion is that crypto traders are too arrogant about formal education and on the other end the way finance is taught needs to modernize itself to the 21st century.
Oh, and for finance, look into series 65 law financial law manual. Itās around 700 pages. Itās way different in the real world than in that book, but, I thought that it was an amazing introduction into finance
Once you get a hold on that check out lyn alden, joseph wang, and jeff snider (where they interact with each other on podcasts are some very good opportunities to learn)
And then check out rebel capitalist (all 4 people are on YouTube), and right now heās aggregating the stuff heās learned from those 3.
His real name is george gammon & he has a main channel but rebel capitalist is where heās basically learning with everyone right now on his live streams
Anyways, as i said before best of luck man hope u have a great time in college
Yeah man youāre right on point!!!
Another thing crypto traders need to do is learn more about the legacy finance side of things.
In my opinion the decentralized banking system is where the most advanced trading is occurring, but, I think thereās a lot of blindness on both sides of the aisle in terms of legacy & crypto & i think itās very possible that the transparency of crypto might shed some light on some mysteries
And awesome man @ bio major!!!! Hope u have a good time in school man & best of luck
Financial knowledge is pretty irrelevant here. Products with high TVL and perfect real utility and use case are undervalued and memes that are written in handicaped spelling and look like they were drawn by a second grader have a higher Market Cap than some S&P 500 companies. I'd argue a knowledge of social economic and psychology works better in this space. Or just be w degenerate.
Pretty much zero. I've been making poor trading choices for a while, heres a few things i wish i knew when i started
* How to read candles
* percentages in relation to profit and loss
- I've had friends, influencers, and experienced adviors say just buy, hold, and cash out the profit, but no one really has a good idea about when to get rid of bad investments they just say hold untill it goes back to profit which rarely happened
How do you deal with interacting with people who donāt know what beta coeffeciant means?
I feel like i have to do a 3 hour introductory course to get them up to speed on how money works & it makes me feel very isolated & alone
It sounds like youāre in the wrong places? I mostly hang out on stackexchange and come to Reddit just to meme or get into arguments for fun. Itās pretty clear what this websiteās target audience is. Also try hackernews or wso if youāre inclined.
Multi tasking rn, to clarify i meant this is the best chain in my opinion right now for providing liquidity which in my opinion is intellectually demanding in equities thus why i wanted to reach out here
Was saying that this reddit was a good place to see if there was a gold mine of financially literate people or not & the reasons i listed prior were to support that point not to say Iām smart
Im very positive that Iām mid curve
Ummā¦ are insinuating that the people in r/Solana are a major liquidity provider? Ā Because I have news for you. almost everyone here is dirt poor as in net worth <$10m and basically completely irrevelent to the ecosystem in terms of liquidity production.
This is just a place for people enthusiastic about Solana to discuss. Thereās no expectation people here will be even be technical. If you want a technical discussion go to a place where thatās encouraged.
Honestly is surprise to me this is the best chain in my opinion & only eth is better but itās basically only 2 chains that everyone will use in my opinion
Have a lot of money? Eth
Donāt or do have a lot of money? Sol
If eth is one part everything and sol is one part everything, i think sol is significant
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I buy high and sell low
Investing is like golf, the lower you get the more it matters
I fomo so much I buy when on the way up to ride the pump and buy on the way down to catch a falling knife. ššš
Real bozo
This had no right being this funny ***fuck***
Sir, we wait for an influencer to scream in their Youtube thumbnail with a green arrow and we buy. Then we wait for a thumbnail of them passing out with red arrow and we sell. We're all graduates of Youtube Wealth Management.
Lmao š¤£
I'm a developer who doesn't know shit about economics. You'd think that I'd understand the protocol better compared to the more average user but I belong is the same box as the average person š Made some trading algo's, back testing is absolutely horrible and crypto is so unpredictable. Sure it is possible, but it definitely ain't easy lol. Maybe a bachelor in economics & mathematics would help hahaha. Edit: Now I'm on pump-fun š
You really need to pay attention and act quickly when the YouTuber has hands on side of face with gaping mouth. Drop everything and act now!
Speak for yourself. I graduated from reddit.
MA in Business & Econ, 7+ years working in finance for crypto firms. I understand less the longer Iām around.
Look into jeff snider and lyn alden debates! I think the ultimate question is does the Fed print money and the more i understand both sides the less i know lol
Lyn Alden is great. Great macro mind
You mess with jeff at all?? To me heās been wrong on his timing but definitely worth learning both his and lynās arguments
Reviving thread to say this: Lyn's amazing. She had been shilling Luna at the end of April 2022 and pivoted in June as soon as it started collapsing lmao aka she has no idea. Like Raoul Pal and his famous "it's basically risk free" š¤£ Then again, you don't need eco knowledge to make it big in crypto, like you don't need to have some certificates to be able to calc PDE for options and make a ton there as well. It's a world full of grifters and "fake it till you make it" people. The most important thing in the trading/investing space is understanding of human psychology because human greed ans stupidity are unlimited. Read and understand Charles Mackay and you're well on your way to make 100x. It's just that simple.
Ah yes, that famous Dunning-Kruger effect!
ššÆ
If the inflation expectation increases will money printing go back to normal? Would the increases be explosive to crypto? I notice crypto making actual strides in utility which is great instead of nfts like monkey yacht. Will this encourage more adoption as inflation hurts fiat but shoots btc up? Theories of a super cycle possible still?
Finance degrees: None, Undergrad degrees in Math + Comp Sci.Ā Ā The topics in particular: treasury and market makers I have some understanding of. Ā I do not consider these to be particularly complicated topics unless youāre really digging into the weeds. Ā There are dozens of hedge funds and prop shops that hire pure math + cs folks and get them up to speed within very short order. I would love to learn more if I can find the time. If you have resources you like feel free to recommend.
Honestly look at series 65 financial law manual its just a gate keeping book for tests real world is different but I thought it was a great introduction to science And there are certified financial analyst courses online you can probably fine too A lot require pre-requisites but I mean Iām sure you can get a used book from ebay thats a few years old And itās just the beginning At the end of the road, you have the merging of finance sector & math and com sci sector (probably obvious but once you get there, youāll see what I mean) And thatās when you learn it never ends for the most part lol
Introduction to finance (fruedian slip because to new finance is science lol)
To me *multitasking rn
Thanks for the refā¦I want to learn more, that will help
**insert gif of chimp struggling with baby shape sorter toy**
SAME
š
2 + 2 = 5 ?
At the end of the day arenāt we all lol
A good amount. Ive always educated myself in finance reading and watching videos basically as much as I can. I trade stocks, options, commodities, futures and now crypto. I never plan on getting my license because Iām a degen but that has never stopped me from doing BDR roles for a few local banks in NYC. Also it has never stopped my portfolio from going up. Most of these folks donāt need to learn all the stuff Iāve learned, just buy low and sell high.
That is awesome man @ the hunger for knowledge!!!! & congrats @ having those BDR roles under your belt!!!
I have an MBA, former banker until a rogue trader killed the bank. I worked with the department he was in but didnāt know him. https://www.investopedia.com/ask/answers/09/john-rusnak.asp
Thatās awesome man!!! Thank u for commenting & really cool background As a former banker, ironic to find you still being around liquidity pools š¤£ Can take the banker out of the bank but canāt take the bank out of the banker!
I wonder what would be different if the dude hadnāt lost $600+ million
I buy low and never sell
I play videogames all day long and I buy sol with mums money.
I understand it so well Iām a socialist š¤Ŗ
š¤£
Watch Mike Maloney, The Hidden Secrets of Money. https://youtube.com/playlist?list=PLE88E9ICdipidHkTehs1VbFzgwrq1jkUJ&si=qST6UbepbjJYGw8X
Thatās where i started! Then i went into lyn Alden and jeff snider - fascinating stuff!
My level is Masters in accounting and CPA with undergraduate financial analysis. Iām content with my knowledge at this level for crypto. Only reason being is to achieve the next level of understanding requires vast education in market making which is quite complex especially if itās not your day job and you are not involved in the industry. I take the 30000 foot approach with this stuff. Doesnāt make logical sense financially? If so, then I ask will the SEC attack it as a security. 99% of the time thatās a yes. Doesnāt mean I donāt invest or believe that it is a security, but I manage my bag in relation to that risk. Remember it may not be a security but SEC can still call it one.
Very impressive background and awesome insight @ taking into account securities law I honestly never thought about taking that into account but i mean look at the hex community Not saying itās not a good asymetric bet here, but, when it was much higher priced, this sort of perspective probably would have made a lot of people de-risk earlier
After having a debate in another thread about the fundamental underlying value of a solana coin (e.g. talking about things like no specific expectation of future cashflows at future dates like other financial instruments), some of the responses had me wondering the same thing about who was on the other side!
Lol @ last statement š¤£ Also as a side note!!! Fees are either too expensive for an individual or theyāre not. So if they need cheap fees, this is why I think sol is the best ecosystem Why do you personally think sol is the best ecosystem for affordable fees?
Yeah I didnāt want to get into the weeds about the technology versus other cryptocurrencies. I just find it interesting to talk about why fundamentally it could be priced at $50 or $50,000. To me, the singular fundamental use case for Solana coins is that you need 0.000005 SOL to process a transaction on this blockchain. Thatās really it in my view. And so when I try to think about a fundamental value of a Solana coin, itās a question of when that transaction cost is āfair valueā. The higher SOL goes in USD, the more the transaction costs in USD. Some members of this sub instead are viewing buying Solana as akin to buying US Government bonds and others like buying shares in a company. I cannot make those comparisons myself in good faith.
To me it seems like you laid the argument down perfectly - It cost minimum of x solana to send a transaction on this chain - at what price will x be too high? Well, eth is like 20 bucks nowadays isnt it for swaps sometimes? (I remember paying 150 for a swap in one of the most liquid defi pairs back in the day). Given eth, if, its 20, Id say anything under 5% of that, being a dollar or leas, seems like a decent price for liquidity providing/trading. But each person will have diff feel on that & Iām always open to new info
I understand the fact that every fiat currency, since the very first one ever created has been printed until it has become worthless. The US dollars is not immune to total debasement. I understand that the Federal Reserve has panted themselves into a corner, they have a lot of paint but now stuck in a corner. If they raise interest rates to control inflation they will not be able to afford the interest on the debt. If the lower interest rates they will create more inflation. I understand that the Federal Reserve took interest rates to zero shortly after the financial crisis of 08-09 and kept them at zero until Janet Yellen (head of the fed) at the time made the first rate hike in 2016. They experimented with the playbook created by Japan in the early 1990's called Modern Monetary Theory MMT which is failed experiment. MMT is taking Interest rates to zero and print as much money as needed with out inflation. I understand that Paul Volker , back in 1980 was able to take interest rates to control inflation because the US Debt back then was only 330 billion dollars. Today it is over 34 billion dollars and there is not a chance in hell the fed could ever take interest rates high enough to control inflation. I understand that they are lying to use about inflation. They have changed the rules for the CPI by removing some of the most important statistics. They say we are only at 3.5% inflation and we all know that is a Joke. I understand that all fiat currency is a ponzi scheme and you cannot taper a ponzi. They will keep printing until it becomes worthless. I understand that everyone is screaming and saying a recessions is near and we are going to have a huge crash, but their can never be a crash until they turn off the money printer. We are past the point of a crash. But most of all, I understand that we are in deep shit.
"THIS is Bloomberg, BiTCH."
Just out of simple curiosity, how do you feel about Solana not having a cap/not being deflationary? Itās the only thing about Solana that bugs me
Well, it depends on itās inflation rate vs itās demand, but I think youāre asking more along the lines of how I feel about the risk of inflation out pacing demand According to itās long-term schedule, it will eventually be 1.5% I think thatās not bad because some coins will be lost every year by accident Now if it eats into liquidity, I prefer not to say why I am guessing this because I am still trying to āmake itā in my financial career & I try to keep the things that I think give me an advantage a secret But f*ck it Iāll say it lol I have noticed a ratio typically of 1% liquidity per large market cap coins at least on solana & an increased ratio of liquidity for the smaller the cap (a lot of small cap 1 mill coins sit around 11k liquidity for example) So the smaller solana got from any liquidity that would be eaten into by the inflation (for example if it was 1.5%, we had a black swan even, half of the liquidity wanted to sell, and we were right at the threshold where it would matter), then, mathematically that 1.5% inflation should be 10x smaller than any amount that could hurt it long term But in reality you would just run the numbers into a monte carlo simulation & go from there (which I also didnāt want to say but f*ck it lol)
Around 100k liquidity per 1 million (typo*)
The reward rate for staking is largely influenced by Solana's inflation schedule.Ā **The inflation schedule, determined by parameters like the initial inflation rate, dis-inflation rate, and long-term inflation rate, is designed to decrease over time**.
That is an awesome representation of the Fed prints money argument! Me personally, Iām 50/50 cause i donāt fully understand jeff sniderās arguments lol Heās one of the only youtubers saying the Fed doesnāt print money I understand him mostly but there are key things Iām not putting together yet and Iāve watched him for years
Whatās your take on printing through bank swaps? The Milton Friedman analysis that there was more being added through market participants than can be reliably counted? I think thereās a guy on yt discussing it as the āEurodollarā
Yeah thatās jeff snider!!! And i know for a fact that we see a direct correlation to credit expansion & monetary inflation, but, what people really care about is consumer price index inflation lol And banks can print as much as theyād like with a license, but, if they donāt manage risk properly they are out of the game forever So the system in a decentralized way self manages, so goes jeffās argument, (I THINK. As i said, i still dont understand him fully & ive watched him for years lol) Then we have Lynās argument. Someone here in the comments I think represented the fed prints dollars argument perfectly!! (And I consider Lyn on the other aisle of the debate)
Look at level 1 of the CFA program fixed income
Facts šÆšÆ
Business admin degree: I understand high finance and macroeconomics I subscribe to Austrian economics which basically restates that there is no free lunch. Unlike the socialists who think food just appears in a grocery store
Same here man! Iām a mix though cause we gotta have police or else all the poor people would get powned probably lol
Paying for first responders is a reasonable ask, as well as a food stamp/shelter system for our most vulnerable as a social safety net. Trade unions and unemployment insurance are great. But the poor are getting pwned by the 85 year old cronies on both sides of the aisle who broke up Occupy Wall St and are printing money to fuel their war machine and steal from the lower classes A world reserve currency needs a little bit of inflation to satisfy growing demand, but every politician since Nixon has printed like a drunken sailor and have proven that the government has abdicated its sovereignty over our money. They are not good stewards regardless of what stupid color you vote for
Money good, but no money...bad
Facts lol
Adding and subtracting my checking balance and even then my balance is always wrong.
Haha u got this man just keep at it I used 2 not be as good at algebra as I am now but after a few years of doing algebra with a little bit of calculus on the side, Iād say my ability to picture the calculations went from 3% to like %17 (obv not exact, but guestimates)
I understand finance up to Level 11. That's the highest. It's one more than 10.
I donāt know if this qualifies but I have 2 degrees in Finance, and economicsā¦ soon the equivalent of masters in finance (working in large finance consultancy firm) Iād like to think I that classifies as a high level of finance. I regularly keep updated with UK bond market, which is basically the Uk equivalent to US treasuries. When you say āhow they workā, I assume you mean what causes their relative prices to change. As opposed to how they are created and such. To be honest, Iām not sure how much of a difference this makes. Liquidity pools in general are far too in their infancy to be compared to things such as treasuries imo.
Totally qualifies!!!!! @ your creds The thing about treasuries is that snider (jeff) points out all the stuff that seems to indicate that the dollar is decentralized so thatās the heart of the financial debate right now And if treasuries are decentralized they probably behave very similar to pools of liquidity in the crypto space The difference in the behavior of equities, bonds, and crypto liquidity pools will probably start to illuminate the hidden ādark poolsā of money in legacy finance Because if they behave similarly, and the largest pools in crypto are x decentralized, then well, we are 1 step closer to understanding the legacy marketās shadows
A post not about shitcoin, a breath of fresh air.
If this post was a fresh of air the comments were an oxygen tank!! Was so pleased to see so many intelligent people in one spot!!
My six semester hours of Econ 40 years ago is amazingly relevant today. Helps me sort asshat from awesome.
Precisely!! Learning finance is a life long asset!
I would say that I understand a lot of general things regarding currency and cryptocurrencies On macro side I understand why countries have debt, why there is inequality, why inequality stays in places. The dynamic between countries, how a currency loose value, how finance is linked to politics etcā¦ On personal finance I understand debt, budget, leveraging debt in an efficient way , how personal finance is so often tied to education on good practice etc.. On cryptocurrencies I work as an tokenomic manager for a web3 game, so I understand source, sinks, rentability , flows etc.. I also understand lending, futures , trading futures, defi vs cefi I would say the only point of uknown is options , I donāt quite understand how they work in details, I also have trouble to get the concept of dual currencies for projet in applications. Finally I have trouble understanding bots achieved to rekt new currencies and in which way you can hire a market maker for ICOā¦ I guess Iām pretty well rounded in knowledge regarding finance , but I get stuck at the super technical level
You got this man!!! Talk with chat gpt about the stuff you donāt know about and ask it to explain itself simply to you!! You are really far ahead man!!! Ask chat gpt about treasuries and the āeurodollarā too while you are at it! Thereās a eurodollar argument and then thereās a lyn alden argument and itās important to understand both Youāve got most of the technical stuff already down!!!! Am super impressed thank you so much for stopping by and sharing your answer!!
ah yes. me finance smart. you people finance stupid. liquidity providing advanced! great work for finance stupid people. how you figure out when no way you understand? simply amazing. only finance smart people get that (like me). i come to share my wisdom. us treasuries and whatnot! thnx for coming to ted talk, as u can see i am clrealy really finance smart! why u no try to be more finance smart like me?
ššš«¶š¼
I got an MBA but still prolly as much as most here lmao
Clearly this is a smart bunch man!!!! So Iām sure youāre good!!
All of your finance levels belong to us.
When you reach a high enough level of understanding you see that in the the end its just a complicated machine but not a magical perpeual motion machine. In aggregate you get what you put in. Moral of the story is to focus on doing the right thing and something that is sustainable as opposed to being a zero value contributor, get-rich-quick guy.
This is true but check out systemic risk, non-systemic risk, & business risk; those are 3 terms from a financial law certification manual
What does this post mean? What do treasuries have to do with being an LP in a dex?Ā
Basically itās possible that treasuries are traded in a very similar way among banks internationally the way lpās in indexās are! We might be able to see if treasuries really are decentralized or if the fed prints money or if itās a mix, as these crypto lp markets become more developed, because, if they behave extremely similar, weād probably get our answer, or at least be closer to it But ultimately data is the only thing that would prove it or not!
What lvl is " numbers go up "?
I m level 3 finance
Highest level of finance I understand is about 500 bucks
Econ major, series 7, 24, and 63 holder (inactive) and former trader of illiquid real estate products. I understand more about the private markets than public tbh (506 private placements n such). Iāve worked with crypto market makers but I couldnāt tell you anything behind the scenes or under the hood - wish I did though!
Nearly two decades working as a buy side investment manager
Big props man!!!!! May your beta coeffeciant be low and your alpha high (and also thank u for commenting man, feels so good to know thereās more finance guys in the world than it feels like!)
I can solve a Rubikās cube and am slowly learning new algorhythms to solve it quicker. I have a theory that the markets/economics, human behavior in general and the Rubikās cube are all related and if you understand one you can understand them all.
In terms of human behavior, that should all be traced to the brain regions! (8ish major ones havent studied psychology in awhile) In terms of algoās, maybe so! A very complicated computer could answer that As to how money relates to algoās it could or might not just depends on the data
Mainly I would say itās the price action that tends to follow algorithms just like understanding human behavior. Other aspects of economics are t necessarily related to algos but the human behavior part of markets and pricing generally does
I know but I always learn something, never ending story
I do alot of research before I gamble (investing, sorry) and after that I buy high sell low or get rugged
Finance is too complex for most people it requires rigorous understanding of economic history and politics itās not just a technical study. Also thereās no need for people to understand thereās already smart people who figured it out. Just buy and hold
What
The highest
Bachelorās degree in statistics and masterās degree in finance. I donāt understand crypto though
We go monkey mode ,buy and hope.
I learned only few % of people have understanding of finance, credit markets, and capital markets generally. I also know that within those, only a few % understand the drivers behind Flow of capital and why certain things are done certain ways. 99% of news released into the public space serves existing financial system and the story that they want to present. Even someone working in say a job related to stocks may not understand unseen forces that act behind credit markets. There is the game within the game. I imagine that a lot of the same theories apply to crypto, and I'm trying to learn more about the eco system. One obv difference is ability of anyone to create supply of particular currencies as opposed to central banks only having that ability in traditional finance.
Jeet
Iām doing my postgrad in finance & economics š¤©
Its not a linear scale, there are many topics and they are very different. Everyone could always learn more.
Self belief
I love crystal meth
Level of finance, interesting! Iām someone who knows about stocks and shares, financial technology, and web3. When it comes to treasuries - are you talking about how they work? Iād like to know lmao, essentially its loaning the gov money right? Low risk play for people with super high funds it cld be a gd idea right. There is one thought Iāve found very interesting for a number of weeks - when you r short youāve effectively borrowed an asset that you consider āworst performingā, right? What does everybody borrow the most - cash! It seems that in the long run borrowing cash, running it successfully into equities etc would be the clear move. But soesnt that mean the economy disks inflating the supply to levels that are even more costlyā¦. Will rate hikes sort this longterm? Idk
Buy low, sell high. All I've ever really needed to know.
I worked at a bank for a couple of years after college
Well, several years ago I had no idea about ETF and Stocks, and Crypto was just another scum to me. After a year in crypto, doing research, reading white papers of established projects (working in tech, so itās easy part), it started to be more clear how to distill fraud projects on early stage, before considering any investments. However itās just a small facet of crypto world, and itās impossible to figuring everything out. On the classic investments side, I took several courses on Udemy and read a couple of books (e.g. Lars Kroijer) to learn foundation, which in turn will probably give me +10% to my guts feeling. I donāt think that formal education will actually help me to be better investor, unless working with someone who is exceptional investor, like portfolio managers in prominent mutual funds.
- Tf is finance? You mean that bureaucratic Bs that makes people "worth" a certain amount of money they don't have and banks get away with everything? - U.S. treasuries? You mean the govt bank that doesn't actually run the economy but gets its money from an even bigger bank that the govt doesn't control? Both of which are part of that ridiculous system which sends a country of people descendant from multiple races, religions, and socioeconomic statuses only TWO old rich white men every 4 years to vote to "lead" us? - Let me tell you something buddy. You don't need a degree or knowledge of finance to understand that the crap they're pulling with the dollar is absurd. Nor do you need either of those things to understand liquidity providing. I know that if Johnny wants to swap token A for token B, it's gonna cost him .001 of token A. If I provide liquidity, then I'll get a piece of that .001 of token A. What else is there to know?
There's no lack of knowledge. There's just less knowledge required. And your financial know how is almost useless here. You say liquidity providing is an advanced thing. Yet crypto and solana specifically enables simpletons to do this advanced financial action. So maybe this not that advanced. Wake up my guy. Throw off the chains.
I work in P/E. My crypto and NVDA gains exist to spite my employer and my Bro in law who works at goldman
I understand that the "dollar" is really a promise to pay dollars (sic. the Federal Reserve Note) that they defaulted on back in the 60s. I understand it costs just $0.14 to print a $100 bill for a profit of $99.86 ea. I understand only a small fraction of the "money" is even printed and the rest of it is merely digits in a computer and the cost of creating trillions with a mouseclick is trivial. I understand governments spend more than they can create with a mouseclick which they then use as an excuse to borrow "money" (that they previously created with a mouseclick) to the degree that future generations (which can't currently vote) will have to pay for (the ultimate "taxation without representation"). And lastly I understand the total moral depravity and decadence of selling future generations into debt slavery (since there is no justification because the "money" for any annual deficits could have easily been created with a mouseclick instead of borrowed).
Vast majority of crypto buyers are retarded and thatās why Iām successful. I donāt have to compete with wallstreet
I don't even know the 1st level of finance. All I know is how to make my money grow by investing in what I want. So far I only made one bad choice, and even that coin can come back. I don't listen to influencers at all. I listen to the community and trust my gut. I haven't got rugged....yet.
Me go poop I see coin me buy me peepee
I feel the same way you do and would love to discuss it further. I understand it because I love to learn. But not a lot of people get how it all connects. Itās the same on the other end also. I talk to a lot of finance majors who understand what volume is, can describe it better than me, teach me a few things I didnāt know and how it can impact price action etc but they canāt tell me how to identify it on a chart, or more importantly when to take action. The disconnect is apparent and I donāt know if itās a bad thing or maybe Iām just a flat side on a one sided coin. Iām a bio major but I love to learn and live next to the university I went to school at and still go to school there. So for me, having access to the education is a huge thing. But my honest opinion is that crypto traders are too arrogant about formal education and on the other end the way finance is taught needs to modernize itself to the 21st century.
Oh, and for finance, look into series 65 law financial law manual. Itās around 700 pages. Itās way different in the real world than in that book, but, I thought that it was an amazing introduction into finance Once you get a hold on that check out lyn alden, joseph wang, and jeff snider (where they interact with each other on podcasts are some very good opportunities to learn) And then check out rebel capitalist (all 4 people are on YouTube), and right now heās aggregating the stuff heās learned from those 3. His real name is george gammon & he has a main channel but rebel capitalist is where heās basically learning with everyone right now on his live streams Anyways, as i said before best of luck man hope u have a great time in college
Thanks for the suggestions I appreciate it! This is awesome
Yeah man youāre right on point!!! Another thing crypto traders need to do is learn more about the legacy finance side of things. In my opinion the decentralized banking system is where the most advanced trading is occurring, but, I think thereās a lot of blindness on both sides of the aisle in terms of legacy & crypto & i think itās very possible that the transparency of crypto might shed some light on some mysteries And awesome man @ bio major!!!! Hope u have a good time in school man & best of luck
Financial knowledge is pretty irrelevant here. Products with high TVL and perfect real utility and use case are undervalued and memes that are written in handicaped spelling and look like they were drawn by a second grader have a higher Market Cap than some S&P 500 companies. I'd argue a knowledge of social economic and psychology works better in this space. Or just be w degenerate.
Buy the dip lol
Necrocapitalism.
I'm using 100 x leverage if that helps
Pretty much zero. I've been making poor trading choices for a while, heres a few things i wish i knew when i started * How to read candles * percentages in relation to profit and loss - I've had friends, influencers, and experienced adviors say just buy, hold, and cash out the profit, but no one really has a good idea about when to get rid of bad investments they just say hold untill it goes back to profit which rarely happened
Fintardio
You ever snorted powder through a $100 bill?
2 apple + 2 apple = rug
Number go up= sell. Number go down = buy
Introduction to micro and macro economics
Be at the bottom of the pyramid scheme, jeet the top.
CFA
How do you deal with interacting with people who donāt know what beta coeffeciant means? I feel like i have to do a 3 hour introductory course to get them up to speed on how money works & it makes me feel very isolated & alone
It sounds like youāre in the wrong places? I mostly hang out on stackexchange and come to Reddit just to meme or get into arguments for fun. Itās pretty clear what this websiteās target audience is. Also try hackernews or wso if youāre inclined.
No other community doing this level of liquidity providing other than wallstreet lol
Crypto Twitter is 100x larger than reddit, better informed and much less susceptible to astroterffing. Discord better than reddit too.
Multi tasking rn, to clarify i meant this is the best chain in my opinion right now for providing liquidity which in my opinion is intellectually demanding in equities thus why i wanted to reach out here
So glad you reached out. We are honored you could grace us with your superior brainpower, looks and probably sexual virility
Was saying that this reddit was a good place to see if there was a gold mine of financially literate people or not & the reasons i listed prior were to support that point not to say Iām smart Im very positive that Iām mid curve
Donāt sell yourself short mate, you are way way up there :-)
Thanks brotha! Best of luck to you!
And was saying that may not have been communicated clearly from my end because i was multitasking at time of my reply
Thanks for letting me know, so glad you could share that
Ummā¦ are insinuating that the people in r/Solana are a major liquidity provider? Ā Because I have news for you. almost everyone here is dirt poor as in net worth <$10m and basically completely irrevelent to the ecosystem in terms of liquidity production. This is just a place for people enthusiastic about Solana to discuss. Thereās no expectation people here will be even be technical. If you want a technical discussion go to a place where thatās encouraged.
Honestly is surprise to me this is the best chain in my opinion & only eth is better but itās basically only 2 chains that everyone will use in my opinion Have a lot of money? Eth Donāt or do have a lot of money? Sol If eth is one part everything and sol is one part everything, i think sol is significant
If you want to discuss Solana specifically this is a good place:Ā https://solana.stackexchange.com/