Bitcoin Is the Biggest Big Short

Bitcoin Is the Biggest Big Short

Short-sellers, who make money when the price of a targeted financial instrument declines, aren’t always popular with corporate or government leaders. Those on the receiving end of contrarian bets against stocks or currencies tend to portray them as sharks undermining people striving to build, grow and create value.

This, if you’ll excuse the pun, is short-sighted. 

Short-selling is a necessary part of any functioning, efficient financial system. It provides liquidity, ensuring there’s a seller on the other side of each bid. And when viewed in totality, those occasions where the short-seller ends up winning offer invaluable signals on how society should better allocate resources. 

I say this because at a time when its price is again soaring, bitcoin should essentially be viewed as a massive short position against the entire financial system. (Even bigger than the “The Big Short.”)

Bitcoin is more than a hedge against inflation. Indeed,

Continue reading

You Might Like

Do NOT follow this link or you will be banned from the site!
Send this to a friend