You all should know by now there are 2 exchanges opening December 10th & 15th to trade bitcoin Only

>many of us are cashing in half of our bitcoin and buying litecoin

so, this your marketing campaign?

lol no

there are exchanges that allow you to short BTC

there are people who hold btc and lend their coins to the exchange for a small interest rate
the exchange then lets other people borrow those coins (with interest) and those borrowers can then sell the coins on the market

thats how shorting works

what the OP is referring to is not short selling at all but rather the upcoming futures market

futures are a derivative instrument
they are contracts to buy X amount of a thing at a future date and at a locked in price

it is not short selling, however the fear is that some big money who has bet on the future price of bitcoin going down will now have incentive to crash the bitcoin price in order to make his futures contracts more valuable

get it?

I do, but just posting this a thousand times without futher a grounded opinion, or triggering an discussion is just a shill.
You're telling people to catch a failing knife without elaborating why this is a good idea other than that we (you) want freedom from bankers.

The incentive is right yes, but if they sell low someone willing to play on both cboe and say bitmex will pick up the arb

>gold is crashing because bigmoney is getting liquid cash to short bitcoin

WORRY.JPG

>get it?
no

this is what i don't get
>however the fear is that some big money who has bet on the future price of bitcoin going down will now have incentive to crash the bitcoin price in order to make his futures contracts more valuable

I just don't get how they would have the power to make the price drop

Or do the exact opposite and make money

well theoretically this big money trader already owns a large amount of bitcoins themselves

a huge sell order that drives the price down sharply on a large exchange can affect every other exchange worldwide as others try to follow.

Not exactly. It's not forward contracts but options that would be traded for speculation. Options are nice for speculation because you can make big profits with a relatively small initial investment. With e.g. a put option you're paying a small (relative to the price) amount for the option to sell at a predetermined price at some point in the future which when the time comes you may exercise or not. If you don't you lose that small amount, but if the price had fallen by a lot you would make a huge profit by exercising the option. That's how you would bet against bitcoin, by buying options to sell it in the future.

lets say bitcoin is trading at 15k

and lets just assume that futures traders overwhelmingly think the price will go down and now there is a futures contract that will allow you to buy a bitcoin at 10k on a locked in date 3 months from now

If I think the price of bitcoin in 3 months will be 20k, and lets assume I am correct, I could buy a bitcoin now for 15k and make 5k profit as I hold it for 3 months.
Or I could buy the futures contract, and I would have made 10k when the execution date arrives.

So why would I buy a bitcoin at 15k now if the futures market is trading at 10k? If i am planning on holding my bitcoin for the duration anyway its a no brainer to buy the futures contract instead

but now if everyone follows the same logic and stops buying bitcoins and instead is buying futures contracts...

is the price of that bitcoin actually going to rise? the demand for the real deal bitcoin is reduced since everyone is just buying the futures instead.

Or you could sell your actual BTC at 15, buy the futures at 10, and in 3 months have made 15...

Well, if "futures traders overwhelmingly think" wrong and you can predict the future then yes ...

RIGHT

YES

but if everyone is selling at 15
its going to drive the price down towards the futures value

>well theoretically this big money trader already owns a large amount of bitcoins themselves

yeah but that's theory up until last summer they were all laughing at BTC buyer
they cannot have that much in store and even if they do BTC isn't a stock. this shit has already bounced so fast in the past that people know to hold
most of the massive drops are caused by people trying to sell and buy back in the dip

so they might just end up loosing all their holding while the market goes right back up. it would be a pretty stupid move if you ask me

>One is a futures market that will allow Very big money to SHORT bitcoin now who would want to do that

cboe and cme are both launching futures rtard

until they hit parity

You aren't getting this... (((they))) don't need to hodl anything, the margin will get closed by whoever. Think about this, gdax is selling at 10, bitmex is buying at 15... Some fucking guy, in reality a lot of fucking bots owned by a lot of fucking guys, is going to keep buying on one and selling on the other until there's the tiniest fraction of profit in doing this. Liquidity is actually still pretty bad in BTC so it can runaway, but it will be reeled in.

This is not the case of buying on one, sending the BTC to another exchange and selling.. The goys who do this will be loaded up on multiple exchanges with both or more currencies, when one ammo depletes they refill

Im off but you goys need to understand better, here's a quick rundown

investopedia.com/articles/trading/04/111004.asp

All you really need to know is if the futures are cheap the BTC price should come down, but we have ideological whales and all that kind of shit on our side, and of course I don't think there's anything to say this recent pump wasn't wall st loading up some manipulation ammo of their own. Should be an interesting ride, be careful friendos.

The futures will open in december/january, I would cash out in January after the hard forks if I were you guys