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/biz/ - Business & Finance

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7886826 No.7886826 [Reply] [Original]

Let's say I use 1 Bitcoin to short Bitcoin when it's worth 8k and I say it will go to 4k. Let's say it does go to 4k, then I get my Bitcoin back plus one more Bitcoin. But now I have 2 bitcoins each worth 4k and I started with 1 Bitcoin worth 8k. See where I'm going with this?

Why would anyone short Bitcoin?

>> No.7886839

You have no idea what shorting means, do you?

>> No.7886849
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7886849

>>7886826
Please tell me you're not actually this retarded.

>> No.7886863

>>7886839
>>7886849
What did I get wrong /b/ros?

>> No.7886867

>>7886826

No. When you short you borrow bitcoins and sell instantly so you can buy back cheaper and pay back the bitcoin you borrowed.

>> No.7886868

>>7886826
holy crap no wonder there's so many bear haters on /biz/. you people are actually retarded

>> No.7886906

>>7886867
That can't be how it works, what if you short and then the price goes up? Then you'll have Bitcoin debt? Who would collect it since it's all anonymous?

>> No.7886927

>>7886906

You borrow from the exchange.

>> No.7887000

>>7886863
Like >>7886867 said. I borrow one btc at 5k and sell immediately. Rebuy 1 btc at a lower price and return it to the lender with interest. If the price goes up beyond your liquidation price you lose crypto in your account set aside as collateral.

>> No.7887178

>>7886863

When you close your short you get net cash, you buy the BTC to repay what you borrowed you colossal brainlet.

>Borrow 10BTC @ 10:1 leverage (100k)
>BTC drops to 1k
>Buy 10 BTC for 10k to repay the 10 BTC you borrowed
>Left with 90k cash

Holy fuck biz has gotten straight up retarded since december.

>> No.7887436

There's a lot of people I wouldn't ban from Biz.

>the shit coins shills
>the BRAP posters
>the fudders
>the linkies
>the trolls and larpers

But you? I would ban in a heartbeat.

>> No.7887525
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7887525

>>7886906

>> No.7888434

I still remain unconvinced, gentlemen