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Programming note: Bits about Money is *supported by our readers*. I generally forecast about one issue a month, and haven't kept that pace that this year. As a result, I'm working on about 3-4 for December.
Beginning with the problem
Perps predate crypto but found a home there
Multiple settlements a day
Convergence in prices via the basis trade
Leverage and liquidations
We have altered the terms of your unregulated futures investment contract.
An aside about liquidations
Will crypto successfully “export” perps?
Crypto’s most popular product offers capital efficiency for professionals, leveraged exposure for the masses, rich yields for market makers — and a poorly understood failure mode.
We are not affiliated with Patrick McKenzie. This unofficial audio edition is available to listen to and share for free. Read the original on Bits about Money.
Duration
~24 minutes (23K characters)
Release date
Dec 5, 2025