I talked about shorting bitcoin to moderate the bubble, and I have some idea what I'm talking about. Don't confuse "shorting will stabilize the price" with "it'

I talked about shorting bitcoin to moderate the bubble, and I have some idea what I'm talking about. Don't confuse "shorting will stabilize the price" with "it's a good idea to short bitcoin". A shorting mechanism makes it possible for people who are not bullish to participate in the price discovery process. Without a way to short, there are only two participants in the price discovery mechanism -- those who previously acquired bitcoin and now think that they're overvalued and those who think they will continue to appreciate and want to buy more. There is no way for someone who bought at $20 and got out at $100 to express an opinion that $200 is an unsustainable bubble. Kid Dynamite wrote a good post about how an inability to borrow can keep a market irrational for a long time here: http://kiddynamitesworld.com/on-misinterpreting-pslvs-premium/ http://kiddynamitesworld.com/on-misinterpreting-pslvs-premiu... It's irrelevant whether shorting bitcoin is going to make anyone money, or when shorting will make people money vs. when it will wipe you out on a margin call. I'm only talking about how the ability to short will make the market more efficient.