btc is a bit different because no one can short it just yet, so it'll probably keep tilting up for a while
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Replying to @LokiJulianus @DoryThePenitent
idk if the ability to short really matters. Ultimately "no state backing or intrinsic value" = volatility, and volatility actually makes shorting much harder (bc of margin calls)
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shorting btc has been possible for years on both spot and futures markets, just not on regulated exchanges like CME until now
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what exactly is the good of an unregulated short? you could just as easily tweet "hey anyone want to make a big bet about BTC"
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"unregulated" exchanges are still legitimate market forces. CME only allows easier institutional access. They even use these exchanges e.g. kraken, where leveraged shorting has been possible for years, as an index
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but what happens when you have a legal dispute about an unregulated short?
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I don't know what sort of legal dispute could arise from shorting, unless something went wrong with the exchange's platform, then you'd deal with it in their jurisdiction.
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well, the legal dispute would be if someone refused to pay or was insolvent, and about enforcement of terms designed to prevent insolvency. Are you saying these platforms aren't regulated by American law, or what?
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I should clarify by regulated I mean by US laws. Those that aren't or don't have full KYC regs tend to use socialized loss systems, like OKCoin (recently closed by PBoC)
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gotcha. You get the basic issue, right? there's a reason shorting, like, FOJC is different from making a wager on twitter about the price of OJ
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