But you absolutely can’t look at the magnitude of the market. It’s the imbalance that matters. An extra 1-2 MBPD with no demand is massive.
How would you have shorted it? Isn't that kind of like saying if you give me $200, I'll give you $300. But you gotta send me yours first...
Shorting though a brokerage typically works via the brokerage holding the security, right? Then you can buy to cover the short at a lower price, and pocket the difference. But in crypto, wouldn’t people want to see that the amount went across the chain, into their wallet? Like actually, not just “in good faith?”
I think if I were conducting a monetary transaction in a completely unregulated and decentralized market, that I would see the color of their money before executing that transaction, and would expect the reverse too. Even if the website was totally something like NotFraudulentBitCoinAndImNotANigerianPrince.com, trustworthy as that site no doubt would be.
There are instruments that own cryptocurrency now. It’s some sort of unit investment trust that holds bitcoin. Basically I can borrow shares of that and buy them back if it goes down. I’m not sure how well it tracks bitcoin though. That’s usually the problem.
Right the security owns bitcoin. So I’m not shorting bitcoin per se I’m shorting the security that owns it. I think there’s actually an short one now too, but I bet it sucks ass at tracking it accurately. It’s been like a year since I looked into it so I don’t remember everything exactly
How much? That’d be some good diversification on my portfolio to go with my Dale Earnhardt memorabilia
a family friend of mine inherited like $500k of GE in 2010. I told her to diversify, but she wanted the dividend and isn't very sophisticated. i think it's worth like $100k now. kind of sad.
$1Trillion in stock buybacks this year, thanks to the corporate tax change. How do stock buybacks work and how do they affect the company? Why buy back stocks? Why not use that money for improvements in the companies, (egad) salary increases, etc?
there were record stock buybacks before the tax change. i dont' quite buy the theory that this is all the tax cut. stock buy backs reduce the number of shares available and therefore increase price per share. and who says they aren't using money for improvements and such?