It seems like silver-bugs are having a rough time. I would like to figure out a way to help them to profit by their wit and short the bitcoin market.
I actually have not paid any attention to exchange markets until now so I don't know much about how they work, but anyway here is my idea.
I'm thinking of something like finding a metal dealer who knows how to deal with bitcoin and is an honest broker. I would lend my bitcoin to a silver dude to sell short, and he would deposit an excess of silver with the broker.
If the price of bitcoin gets to the point where the silver on deposit equals my loan, the dealer buys bitcoin on an exchange, sends the bitcoin to me, and keeps the silver.
Of course I would take a percent for loaning out my bitcoin. The dealer/escrow guy would also need a cut for his troubles. The silver dude could make a ton because the bitcoin market is so sure to crash...ponzi scheme ya' know...
I think that such a scheme is more-or-less how shorting commodities markets work but don't know what kinds of percentages the various parties take. Anyone?
Parenthetically, it does strike me as one VERY cool thing about bitcoin is that there really cannot be such thing as a 'naked short'. (?)
(Disclosure: I'm something of a sometimes silver bug and have a ton of the stuff. I don't want to be known as one, however, until I hear more of them make some cogent arguments about...well...almost anything. I've no idea if silver could 'crash JP Morgan'. I actually kind of doubt it but it would be pretty cool if it did.)