Also, there is counterparty risk if you bet on everyone dying.
(Yeah, yeah, you can bet on something like other peoples belief in the impednding apocalypse going up before it actually happens).
“Rapid takeoff” hypotheses are particularly hard to bet on.
This is actually why a short position (a complicated loan) would theoretically work. If we all die, then you, as someone else’s counterparty, never need to pay your loan back.
(I think this is a bad idea, but not because of counterparty risk)
Also, there is counterparty risk if you bet on everyone dying.
(Yeah, yeah, you can bet on something like other peoples belief in the impednding apocalypse going up before it actually happens).
“Rapid takeoff” hypotheses are particularly hard to bet on.
This is actually why a short position (a complicated loan) would theoretically work. If we all die, then you, as someone else’s counterparty, never need to pay your loan back.
(I think this is a bad idea, but not because of counterparty risk)