Hi everyone!
Hope you're all well!
Welcome to my exclusively DTube video.
It's taken me a long, long, long time to get my head around shorting Bitcoin or a stock.
It's absolutely something that only advanced traders should do, it's basically a financial instrument that allows someone to make money if they think Bitcoin or a stock will decrease in price.
Basically they 'borrow' Bitcoin or a stock from someone, sell it, and then buy it back (cover it) either at a particular time, or at particular prices. Those particular prices could be when they take their profit if they were right, or an emergency ceiling if they're wrong.
I pretty much hate it... because price is more about perception than anything else, it means that people who short Bitcoin or stocks will then write so many articles about how terrible it is, pay mainstream media to do stories on how terrible something else and basically try and scare everyone to sell their shares or Bitcoin.
It means they can totally break something that is important or revolutionary by scaring all the people that don't understand it... they aren't helping, they aren't building and they aren't contributing constructive or helpful ideas, it's pure scaremongering.
The only positive is that if Bitcoin or the shares reach the particular ceiling price the shorts set, then all their automated orders automatically buy the asset, and suddenly prices start to soar, which cause more and more short ceilings to be hit, etc. This can also happen on particular dates, or exactly 6 months after a short of 'Futures' product is launched... but honestly, I'd rather shorts take their negativity and shove it.
Anyway, I hope that helps you... and I do apologise if I've got any details wrong, I still don't really super understand it.
Thanks for watching!
