🐈

this holding would have done nothing with a "real" asset like say cheese. there's a cost to hoarding cheese so that the few wheels remaining on the market have super high prices. cheese goes bad, opportunity cost, etc...

however b/c margin requirements are based on market price once that price (a temporary expression of real world accurate pricing, e.g. the guy who bought the cheese b/c it was the only cure to say his daughter's life) hits a certain level, the margin call causes liquidation

thus by hodling cheese the cheese fans could fuck over the cheese haters who were trying to profit off of a prediction of a plague of upcoming cheese maggots

(aside: lenders probably like to offer high leverage b/c they know it amplifies volatility, increasing the odds of a margin call since it can legally do so based on MARKET price not "True" price)

this is similar to how the hoomans point to a pile of rubble and turn it into a priceless collectible Unicef Heritage. anything can become priceless if you want it to be.

so interestingly enough, fat reserves have no real effect on the short term market price just like a mammal's metabolism doesn't really fluctuate that much except for expected bursts of activity like pouncing or climbing

short term sudden changes can point to things like fasting/starvation and over consumption of simple carbs while long term changes can point to things like a healthy diet, anorexia, or clinical obesity

market price only "snaps" into reality once these extremes are forced into legible realized naming. e.g. doctor saying "ur fat/anorexic & going to die" e.g. you go to buy some wood and there's nothing left and you exclaim "THAT was valuable???"

basically, market price is pretty accurate as long as you are not caught in a squeeze or a frenzy where the target item is (discovered to be) scarce it's only when the market is saturated with the item that market price is accurate