Dramatic Irony

>The banks and the financiers make hundreds of billions of dollars shorting bitcoin in cash
hundreds of billions is nothing. this is extremely shortsighted and not seeing the forest for the trees

>>The banks and the financiers make hundreds of billions of dollars shorting bitcoin in cash.

t.brainlet here, where does the hundreds of billions of dollars come from in this scenario?

There is a fundamental problem with your analysis though. The amount of bitcoins traded on exchanges has only gone up 5x over the last 4 years, even thought the daily volume is way up. This is because the price increase accounts far more with the increase in daily volume. Also more volume is focused bitcoin to alt coin then bitcoin to fiat, meaning that almost the same amount of bitcoin is being traded for fiat now as years ago at the same price. This is because bitcoin has a group of core believers who will never sell it, only use it as a currency. Normie's may panic sell and probably will, but this market has a resilience too it, and futures have unlimited liability. If they sell uncovered calls, (essentially shorting it) or even take an actual short position of any significant number of bitcoins they have the problem that the amount of bitcioins on exchange will be nearly the same when they short as when they buy back. If you don't understand why this makes short positions extremely difficult and potentially untenable I can't really help you, other than to say when you short a stock you do so with the expectation that bad news or bad price action will cause shares in float to increase, this has proven false in bitcoin.

most illogical, retarded fucking theory i've ever fucking heard,

kys

CME wont actually buy or sell bitcoin though

>hundreds of billions is nothing
Are you fucking kidding? A hundred billion dollars is a 10th of the US military spending per year, that's not nothing.

neat

Number of bitcoins is irrelevant because there are 100,000,000 satoshis in a bitcoin.
CME is settled in cash, not bitcoin.
Volume is from big money.
Big money removes volume, price crashes.
Limit to shares in float only makes it easier for big money to repeatedly short.
They go short, price dips and rebounds.
They go short again, price dips and rebounds.
Repeat until delusion.

true. it's technically not nothing; but relatively speaking, to the worldwide financial market, it's fucking nothing dude

don't be so naive
10k is nothing to some greedy persons, they won't crash this at 10k, it's way too soon

nice, there will be a dip?

Finally. Finally someone on Veeky Forums gets it.

Yeah it would be obvious when they cash out those hundred of billions but they literally cant cash out so your point is moot

>Shorting the futures of a string of ones and zeros whose value is infinitely dividable, anyone with an Internet connection can own, anyone can see and trace and can be transfered around the world and back near instantly and at hyper low costs.

Holy fuck
Banks and financiers don't even know why or how futures markets work.
And they are about to kill themselves setting one up.

Bitcoin is not going to destroy the financial system.
The financial system is going to destroy the financial system.

>They gradually sell off all of their bitcoin in the $9,000 to $10,000 range

You'll soon be proven wrong. Watch this video to find out why Bitcoin is most definitely going to go way past $10k during the next hours:
youtu.be/7LE7NaOyRUo

Even Bcash shills had to resign. 10k is not the end of this run

NGR to the moon! Hodling for lyfe

too soon before possible gov. regulations? or get the last free cash grab...

>muh 10k
infantile

And you fail to understand that when an asset begins to crash and people buy up the bottom, it starts to bounce, but people who bought the bottom realize they just made a great profit and are nervous enough that it will fall again, so they sell in the profit and it starts falling again, so then more people who bought on the way up the bounce sell more and it falls back to "support," but then more people sell because they don't want to make the same mistake again, and people who bought on the way down begin to panic and sell and the cycle repeats itself so it keeps falling further and further despite people "buying the dip" all along the way. Enough people will panic to weigh out the people buying the dip.

That's not how shorts work. Shorts are always settled in the asset being short, you sell something before you own it and you have to buy it when the term expires. The problem as I already enumerated is if that any kind of coordinated shorting effort would be done at the level of billions of dollars. Probably Tens of billions. Putting aside for a moment the fact that having a short position against a coin you don't own has no direct effect on the price, and every one of these groups could be liquidated massively by market irrationality, or even by the fact that bitcoin markets are world wide. IF they did short and bitcoin did crash down, they would have to effectively buy all of the shares in the float and accumulate to cover their short positon. Because the amount of bitcoin in the float doesn't actually increase by very large amounts in bear market, and they have an obligation to buy it no matter what, they will effectively stabilize the price of any dip they shorted into, which will give bitcoin een more resiliency, even if the price goes down. Futures will likely tame the fluctuations in this market, but it will also prevent incredibly massive crashes.

yeah seeI was too lazy to explain myself. You seem to not understand how markets work. When it wants to crash it'll fucking crash and stay there

I agree with you on the price, but what about timeframe? If Bitcoin is a pyramid, why is it alive for so many years?
For example, the most impactful pyramid in Russia that even kids know about - MMM (1994) - has lived for 2-3 years. Todays markets are fast, many hyip projects last for about a month.

Lol shorts aren't settled in the asset being short dumbass.

That's only in bitcoin markets.

If you short 1000 contracts on CME and the price drops 20% then the person who sold you the contract has to give you 20% of the value of 5000 bitcoin when you went short in CASH.
They don't give you the fucking bitcoin lol...

Obviously if they pumped the price to an insane level of $10,000 each they have both established a price point at 1) a psychological barrier and 2) an overinflated price that was met parabolically.

Only a few idiots will buy above $10000. But it won't be more than the number of people selling.

>big banks short the shit out of bitcoin
>bitcoin price plummets
>people panic to sell their coins to avoid losing everything
>big banks cover their shorts by buying panic sellers’ coins
>big banks pocket the difference

You can short anything, if you can find a counterparty. These derivative contracts are basically bets. This money comes from the contractee who "loses" the speculation. You can open a market in whatever. If nobody is willing to counterparty your bitcoin price bet, you wonät get much of a return.

Bitcoin's not a pyramid. That doesn't make any sense because that's just not how a pyramid scheme works.

It's not even a scam, at all. It's just overbought and filled with speculators so a crash fairly soon is likely. OP might have accurately explained the reason, but I don't think it's more complicated than that.

niggercoin solves the problems with bitcoin. It is satoshis original vision.

Options are derivatives based on the difference between the contract price (strike) and market price of the underlying (bitcoin, in this case). If they're able to get BTC on CME and buy puts, the counter party would be the OCC (options clearing corporation). If you hold your option until expiration, and it is "in the money", you get the difference between mkt price and strike.

Buying puts at $9K strike for BTC, and BTC falls to $500 and stays there when your option expires, you would get ($9,000 - $500) * Contracts * 100, or $850K USD per contract (options contracts sold in 100 share lots, or 1000 share lots for futures).

I remember...

BTC went full ponzi long ago. I think your assessment is a pretty accurate estimation of what could happen. Of course, there is the element of asians, especially chinese, using bitcoin to move funds around outside of the IMF/central bank system.

Why not at 10k €?

Anyone who thinks the world is moving toward more freedom, liberty and peace, is a fucking gullible moron. Truth is, most people don't even think about anything at all. They're just mindless herd following cucks.