Attention: The post about the SEC opened up a site (etf[dot]vote) to vote for or against SolidX Bitcoin ETF a few hours ago is fake. The file to be downloaded with the voting results contains a virus! Don’t download, don’t open!

submitted by /u/castorfromtheva
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Bitcoin – The Currency of the Internet

Who’s really shorting bitcoin? educational post

I see a lot of conspiracy theory here, especially stuff like that whales and institution are manipulating and crashing the markets so they can enter at a lower price point and etc.

I work for a TMT focus HF, but that doesn't really matter much because anyone with a curious mind and has learned to use Google can find this out themselves and see if what i am saying is true.

So, no, there is no conspiracy theory.

The main driving force of bitcoin short is the miners.

2018 has been in a steadily decline with all the charts indicating further downward movement, so instead of selling their coins cheaper and cheaper and lose their underwear, miners bought short sale contract to lock in the price they can sell their future mined coins at.

Now what is a short contract? A short contract allows you to borrow assets from somebody else, in this case, coins. You then proceed to sell it at market price. Later on you buy the coins back and pay back the lender. A short contract will only make senses if you know, or think, the price will be lower in the future.

Still don't understand? here is an example to really dumb it down:

October price hovers around 6K, November average out to 5K, December is at 3K something now. A short sell contract made in October and due december, essentially allows you to sell the coins you would have mined in November and December at October's price, 6K a piece. A pre-sale if that make sense. Later on when the contract is due, you buy the coins at 3K a piece, December's market price, and return the coins back to the lender who lend you the coins in the first place in October. You profited 3K per coin.

Now, obviously miners don't need to buy the coin back, they will just return the coins they have mined from those two months. So, they are basically forced into this short position, because they are stuck with bitcoin, not fiat, from their operation. Exponentially more miners are doing this now because the price break their cost to mine, they are shorting to limit their loss. In the summer, miners are just making less money, now they are losing and everyone is panicking.

So long as the expectation is bearish, the shorts will always be there, from the miners, and it would be foolish to do otherwise. Kinda of a vicious cycle as more shorts in the market represent an overall negative outlook which will drive down the price and thus force the miners to short even lower, whole thing goes round and round, until i suppose it reaches a point where everyone is pulling the plugs of their rigs and the cost to mine goes down substantially since the overall computing power diminishes.

Hope all that make sense and now the fake news and conspiracy can stop.

Edit: I don't get all the downvotes, but they surely say something about this sub

Edit: I don't think people understand how costly farms are to run. The bigger ones cost tens of millions to build and a 7 figure a month utilities bill is not unheard of. Most of those projects need a couple years to cover the initial investment, and thats based on that bitcoin worth 20K and more each. Now these farms have only been in operation for a fairly short time, and investors are panicking af. Rigs that you paid 10K for less than a year ago now is barely worth 1500, that's tens of millions of "unrealized equity loss", except they can't just hodl that shit.They got bills to pay and they will try to sell to get as much fiat cash as possible anyway they can, isn't that just a tiny bit ironic…

submitted by /u/TechIBD
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Bitcoin – The Currency of the Internet

Bitcoin’s White Paper Is Not a Bible – Stop Worshipping It – Samson Mow attempts to remind us the original post to the cypherpunk mail-list was to seed awareness among a intellectual group of hackers who might help improve an idea, not to provide a project scope or precise roadmap

https://www.coindesk.com/bitcoins-white-paper-is-not-a-bible-stop-worshipping-it/

Many people acknowledge October 31 2008 as the “birth” of Bitcoin by way of the white paper. These individuals are not recognizing the birth of the first block itself, but simply the birth of the idea being made by way of a public announcement to gain critical opinion and possibly further developmental support. A few clever people took his bait.

Mow writes a good summary as to why Satoshi's idea as described on 9 pages is not a technical scope document of a major software project and this difference is helpful by providing clarity and understanding.

The actual source code for the pre-release version came out November 16 2008, and version 0.1.0 on January 9th, 2009, after the Genisis Block was created. Satoshi himself stated his code began development at least 1.5 years prior.

submitted by /u/kaells
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Bitcoin – The Currency of the Internet