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Earlier quoted context omitted.
If you are certain it will collapse you can make a lot of money shorting it. If you are 100% sure, there is no downside.
What financial mechanisms exist to short Bitcoin?
Earlier quoted context omitted.
If you are certain it will collapse you can make a lot of money shorting it. If you are 100% sure, there is no downside.
What financial mechanisms exist to short Bitcoin?
Earlier quoted context omitted.
If you are certain it will collapse you can make a lot of money shorting it. If you are 100% sure, there is no downside.
Is there even a US based legit platform to short Bitcoin? If Coinbase was serious about having a true market they would allow you to short Bitcoin as well as buy.
Earlier quoted context omitted.
What financial mechanisms exist to short Bitcoin?
Here's an idea. Ethereum smart contracts to short bitcoin. You borrow my BTC for 30 days, with a 5% fee. Someone could make a killing off of that idea.
As a fiat currency, it is almost by definition a bubble. It's fundamental value is essentially nil, yet it's "price" is positive. In the current equilibrium, people seem to agree that Bitcoin is a good store of value (because it is perhaps limited in supply and ownership is verifiable). Fortunately/unfortunately, other cryptocurrencies are just as useful in this regard. As such, Bitcoin's value is something of a suns…
"It's fundamental value is essentially nil," That's not strictly true. It's fundamental value is the effort required to obtain it - which at the moment is some rather large amount of electricity and hardware. If you have deployed those resources you will not let the Bitcoins go for any less in real exchange unless you absolutely have to. That is the same for anything that is a currency. It's base value is what you ha…
Cryptocurrency may not be pinned in value to anything tangible, but is useful and unique as an asset class for its ability to transfer ownership by virtual means. You can't store a bar of gold in your memory, and you can't send it through a computer. I believe its long term value is in how much people want money that has this property.
Long term, a threat to Bitcoin's value is competing altcoins. Bitcoin is arguably a bad cryptocurrency at a technical level (high transaction fees, slow transactions, bad for the environment, etc.), it's difficult to use for commerce, but seems to be winning out against the others for now, maybe just by first mover advantage and established network effect.
As a fiat currency, it is almost by definition a bubble. It's fundamental value is essentially nil, yet it's "price" is positive. In the current equilibrium, people seem to agree that Bitcoin is a good store of value (because it is perhaps limited in supply and ownership is verifiable). Fortunately/unfortunately, other cryptocurrencies are just as useful in this regard. As such, Bitcoin's value is something of a suns…
"It's fundamental value is essentially nil," That's not strictly true. It's fundamental value is the effort required to obtain it - which at the moment is some rather large amount of electricity and hardware. If you have deployed those resources you will not let the Bitcoins go for any less in real exchange unless you absolutely have to. That is the same for anything that is a currency. It's base value is what you ha…