Author Topic: On short selling  (Read 28 times)

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On short selling
« on: January 17, 2019, 03:33:00 PM »
This topic is supposed to be a place for discussing a very important issue, that of short-selling and its effects on Bitcoin's price and ultimately its fate (yes, it may be that important). I have to say right at the outset that I don't have a definitive answer to the question of whether Bitcoin short selling hurts it and if it does, how much

A month or so ago, when Bitcoin was in what can be described as a free fall, many people here were recommending to move coins out of exchanges as these coins had been allegedly fueling massive short-selling and thus contributing to further downfall of Bitcoin's price. Personally, I have no doubts that there is an element of truth in these claims as I'm often shorting myself and can say from first hand experience that shorts do drive prices down

And while short-term effects of short-selling (pardon the pun) seem to be abundantly clear and not really a point of debate (but you are welcome provided you actually have to say something worthy of debating), the long-term effects of shorts are not so obvious. While many might think they have only negative consequences, there should be some that don't support this view or have certain reservations about this matter

So is massive short-selling good or bad for Bitcoin or is it in fact completely irrelevant in the long run?