Will Bitcoin Be Short?

[Cyberczar]

I've been wondering what to expect with Bitcoin futures. With all that money coming in, what effect is it going to have on bitcoin, especially considering that a lot of the fellows are going to have access to huge funds. What will be the effects of shorting bitcoin.

I'm aware it's going to be a daring thing because of the volatility. Don't you think they'll start practicing to know the reaction of the market until they perfect their tricks?

I also read somewhere that the likely people that'll short bitcoin are miners. Now tell me, why would a miner do that?

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[Capitalist_Dog]

The futures are cash settled, therefore not really bitcoin. This means that in order to short, they'll first need to buy on a real market (Gemini, GDAX etc). This means they cannot short what they already haven't pumped. This means that short effect is neutral.

More importantly, funds can get in at current prices by using futures to offset their purchases moving the market. Most importantly, big enterprises looking to add Bitcoin products and services can do so without currency risk. Apple/PayPal etc adding Bitcoin support to their products would be huge onramps for adoption, and are made possible by futures as hedging tools.

[MiningSensei]

People will never understand that they can not short 1000 billion dollars just with $1, it is impossible, IMPOSSIBLE

they all think that the futures are a way to kill bitcoin because they will be shorting millions or even billions.
 
No way, it is not going to happen, and please stop creating this kind of crappy threads because they all are saying the same!! More than three posts are in the board about futures.

The futures are cash settled, therefore not really bitcoin.

No one is going to short anything, they are working with the cash of people and they are only with a little marging, just like you can do on binance or bittrex.

[HeRetiK]

[...]

I also read somewhere that the likely people that'll short bitcoin are miners. Now tell me, why would a miner do that?

Most likely as a hedge against falling Bitcoin prices.

If Bitcoin prices were fall to a level where mining stops being profitable, they could use Bitcoin futures to cushion the blow. Pretty much how commodity futures are used to hedge the market risk of whatever commodity you produce or require -- which was, if I'm not mistaken, the initial rationale behind futures trading before it became a playground for speculators and investment bankers.

[Dexion]

I think, if that happens then bitcoin will die, but I am sure and believe today bitcoin has a high price indicates that there are still many big investors who choose bitcoin. and it will not happen.
this high volatility also indicates that bitcoin will remain long.
I think the miners are doing it to slow the depletion of bitcoin supplies.

[bitcub]

We do not know what will happened next.  Not all millionaires are investing in Bitcoin. But once they comin some might short Bitcoin or put long.

New crypto comers will surely put it long.  Huge investors can either put it long to or put it short whatever will give them better benefit.

I've been wondering what to expect with Bitcoin futures. With all that money coming in, what effect is it going to have on bitcoin, especially considering that a lot of the fellows are going to have access to huge funds. What will be the effects of shorting bitcoin.

I'm aware it's going to be a daring thing because of the volatility. Don't you think they'll start practicing to know the reaction of the market until they perfect their tricks?

I also read somewhere that the likely people that'll short bitcoin are miners. Now tell me, why would a miner do that?

[minersday]

New crypto comers will surely put it long.  Huge investors can either put it long to or put it short whatever will give them better benefit.

Those who have lost their faith on bitcoin are not going to invest, and that is the end of the story.

Those guys who have always wanted to see bitcoin crashing (akka, the bankers) are obviously going to short this, but without money, they can not short anything.

You guys have a bad concept about the futures and the shorts.

it is not going to be like going to the CME or wherever they are and enter there and say "ok, i will short 200 billion dollars of bitcoin" you need to have cash in there to open a position.

[lawnterrific]

I don't think that Bitcoin will experience shortage in their end because the flow of money is continuous plus, virtual money is not produced yet, enabling them to catch up.