The Big Bitcoin Short: Hedge Funds Set To Battle Fanatics In Epic Showdown
https://twitter.com/BjarneKnausgard/status/935914791394316288
Got it? Great.
And although that's really all you need to know, the imminent launch of Bitcoin futures will invariably spark endless discussions about what the implications are for what is quickly turning into one of the most spectacular bubbles in history.
See the thing is, if you'd dug around in your couch cushions, scrounged up a dollar in real coins, and invested it in Bitcoin back in 2010, that dollar's worth of meta
I’ve been dying to know if Sharon has been buying Bitcoin.
So when Goldman speaks, we all should bow???
Yes Paul, bow to the almighty squid.
you read all of this and that’s what you got from it? lol. this has nothing to do with Goldman. that’s just a one sentence quote and a chart. it’s the rest of the article that matters.
The thing is… you’re not really shorting anything. You don’t buy in or pay out in BTC. It’s all in dollars which never touch BTC. It’s just placing side bets. It’s not like a stock where to short you actually have to rent some BTC and then give it back later.
Yes I am thinking similarly. I haven’t read the prospectus (yet) but I imagine these will just be tied to a XBT index. So even if hedge funds go and put selling pressure on futures, if they never touch the actual coins, how much impact will this actually have?
While on the subject, I don’t necessarily think it’s all greater fool theory. The problem is with the XBT markets is low visibility. It could be a handful of large buyers just manipulating and bidding up the price, with retail money flooding in to add fuel. When the big players have cashed out enough, that’s when the illusion will fall. Actually the biggest scam in history at this point.
That’s my read on it – its strictly settle to cash contract based on the USD reference price on Gemini (I think). The promotional literature had an interesting reference to its practical hedging utility for holders of Bitcoin. So, let’s see – with most commodities that I, as a holder, would be hedging, assuming I have possession of the physical product, I can insure that product against physical loss. How do I insure against the “physical” loss/theft/destruction of my Bitcoin. Does The Travelers offer a Bitcoin loss policy?
I wonder who will be using these contracts as a hedge to their Bitcoin holdings.