zlacker

>>mkeete+(OP)
What's funny about this is that I can recall discussions here and elsewhere from only a few months ago questioning the "guaranteed" super-high returns. I forget who said this but someone awhile ago said in finance said that if someone is promising you consistent above-market returns it's either a scam or there is unknown or undisclosed risk.

And the Crypto Andys were all like "you just don't understand DeFi!" to which the retort is "No, you just don't understand finance".

Finance is the way it is for many reasons. There are thousands of years of lessons that have made the system the way it is. I get the innovator mentality of sweeping away the old but there seems to be a fine line between innovation and ignorance.

I'm just sitting on the sidelines watching people relearn all the lessons of finance the hard way, some because they think they understand finance because because they understand merkle trees and consensus protocols but really most just want to get rich quick.

>>jmyeet+hg
What most people don't understand about finance is that there are fundamental rules that you really cannot break without consequences.

Anyone who has studied quantitative finance knows that it is a HARD science. I worked with a Nobel prize winner in economics, and the math dominated. There was no politics, no opinions, no ethics involved. It really is a science.

Most social media characterize finance as some ethical vice or organized political power structure - and those people simply don't understand finance.

Talking to people who are looking to just tear down modern finance are no different than climate change deniers, antivax, or flat earthers... and yes, they even exist in crypto (and on HN).

>>koheri+Aj
Will understanding the math make me rich? :)

>>monkey+ul
Work at a HFT firm in Amsterdam. That type of finance knowledge will make you rich.

>>mettam+Tm
So you can guarantee 20% returns? We're back where started.

>>djenen+6z
look - there are companies out there - Renaissance for one - who do make very good returns consistently. The difference is that not all returns are infinite. in fact, most good investments are finite - the market eventually catches on and then prices equilibrate. saying that there are no guaranteed 20% returns does not mean that with hard work and good strategy there are not 20% returns to be made on some arbitrary amount of principal at any given time.

put another way, its easy to earn 20% on a dollar. its hard to earn 20% on a billion dollars.

>>abakke+rO
What the fuck are you talking about? The Renaissance medallion fund isn't open to the public and is no longer generating double digit returns as of 2020 or 2021. Much of their performance can be attributed to the fact that they just didn't pay their taxes. A $6.8 billion fine just doesn't cut it in the face how much money they were making. The Medallion fund saw $11 billion in net outflows due to low returns in 2021. Their funds that are open to the public regularly offer negative and low single digit returns annually. Please do tell us more about how efficient this market.

https://www.pionline.com/hedge-funds/renaissance-technologie...