Don’t Get Bitcoin Rekt with Andy Edstrom - WBD470

Location: Los Angeles
Date: Friday 4th February
Company: Swan Bitcoin
Role: Head of Institutional Investment


As with all assets and commodities, a myriad of financial
instruments have been developed around Bitcoin. The riskier end
of the spectrum are opportunities to take levered positions.
These positions can produce stellar returns, providing
opportunities for those who feel like they’ve missed out on
previous bull runs, or have the appetite to try and continue to
outplay the market.


If only it were that simple. Stating leverage involves risk is a
massive understatement. You. Can. Lose. Everything. Liquidation
is a brutal experience. The issue regarding Bitcoin is that
liquidation of open levered positions is inevitable and rapid due
to the volatility.


There are numerous stories of markets turning suddenly in
unexpected directions, and exchanges being unable to deal with
the associated demand to add collateral to open positions. Then
there are flash crashes which occur too quickly for anyone to be
able to respond. Fairness doesn’t come into the algorithms used
to close positions and action liquidations.


Rekt is a term used too often. A simple mistake can undo years of
hard work. Staking sats, hodling, and staying humble are the
tried and tested ways of maximizing the opportunities provided by
Bitcoin. Developing the discipline of having a long time
preference is a cathartic experience.


In this interview, I talk to Andy Edstrom, author of Why Buy
Bitcoin and Head of Institutional Investment at Swan Bitcoin. We
discuss experiences of getting rekt, applying good leverage, the
waves of Bitcoin adoption, playing offence on Bitcoin’s ESG
credentials, and investing in Bitcoin for time and freedom.