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theoretically over time a shorted bitcoin will just chase people to use shitcoins,like why would anyone invest into something thats obviously being artificially suppressed?

2017 https://www.coindesk.com/cme-groups-leo-melamed-well-tame-bitcoin

2021 https://www.youtube.com/watch?v=W8mpzwCf8SE&list=LL&t=418s



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7 Comments

  1. why would it chase anyone away? short positions are very dangerous to hold. if there are shorts, then why not open a long to squeeze them out? shorts have no limit to downside risk. if the market keeps going up, they have to pay back the loaned bitcoin no matter the price, plus interest. while longs can only lose what they invested.

    this whole “shorts are evil” narrative is really childish and ignorant of how markets really work.

    shorts make a market very attractive. especially if the market is for a clearly disruptive, world changing technology. a short is just a way of saying you think the price is too high. nothing else. it’s typically a short term hedge for people who are otherwise bullish in the market. shorts stabilize markets by improving price discovery.

    the only way to theoretically suppress a market price in the face of high demand is to use government to control certain aspects of the supply, like in the gold market where govt dictates licensing for miners, and where govt controls the supply of derivatives through regulatory bodies. but these have limited and short term effects. and bitcoin is the asset most resistant to these types of suppression mechanisms. so nobody is being chased away. quite the contrary.

  2. Gold is surpressed because gold mining companies and the imf flood the market when its goes up. They cant do this with btc because there isnt trillons of dollars of btc floating in the ocean not to mention mines, this is the case with gold. As gold mining get cheaper and better price of gold drops. Btc mining only gets harder. The reason youre confused is you dont know what youre talking about

  3. I am genuinely fascinated by the fact that so many people here and on the meme stock subs equate short selling with “artificially suppressing the price.”

    If that’s the case, then buying something on an exchange for the purpose of holding onto it and then reselling it later for a higher price (as opposed to consuming/using it) is “artificially pumping the price.”

    Short-selling is better for price discovery, which is one of the justifications for having markets in the first place. Without shorting you could have an asset locked up in a small number of bullish hands, which artificially pumps up the quote. That’s not good for anybody — those who do buy pay more than they need to and those who try to sell find they can’t actually sell very much volume at the quoted price. Shorting results in a more liquid, more accurately priced market.

    It’s actual demand + bullish speculation vs. actual supply + bearish speculation. You can’t have a properly functioning market if you allow speculation on one side and not the other.

    This isn’t even addressing the use of short positions as a hedge for holding long, etc.

    What do people who hate shorting want? The price of assets to rapidly inflate forever? To have their account balance show an inaccurately large number that they can’t actually access if they tried to sell all at once?

What do you think?

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