I get that whoever shorted crypto would have lost money. With options though the floor is limited on the loss.decapod10 wrote: ↑Tue May 11, 2021 12:17 amCrypto is already too risky for Bogleheads, they are definitely not going to be shorting crypto, lol.TheCleverest wrote: ↑Mon May 10, 2021 11:58 pm I'm genuinely curious...for those who believe some coins will go down in value...why don't you attempt to profit from this downward movement (ie buy puts, futures, etc)? Not trying to be confrontational...genuinely curious. And I also have thought about trying to profit from a downward movement. TY
There is a lot of shorting in crypto, but it is usually done by people who invest in crypto as well. They usually take bets on very short term action (like hours or days). It's already extremely dangerous for people who study crypto to be shorting crypto, let alone people who are not well educated in crypto.
I've pasted the top 25 cryptocurrencies by market cap and pasted them below, along with the %gain/loss over the past 3 months.
"BTC
Bitcoin" 24.18%
"ETH
Ethereum" 126.11%
"BNB
Binance Coin" 546.37%
"DOGE
Dogecoin" 535.36%
"USDT
Tether" -0.08%
"ADA
Cardano" 125.71%
"XRP
XRP" 203.64%
"DOT
Polkadot" 62.18%
"BCH
Bitcoin Cash" 176.33%
"LTC
Litecoin" 108.24%
"LINK
ChainLink" 76.15%
"UNI
Uniswap" 85.07%
"XLM
Stellar" 61.94%
"USDC
USD Coin" 0.01%
"SHIB
SHIBA INU" 0.00%
"ETC
Ethereum Classic" 1027.11%
"VET
VeChain Thor" 520.57%
"SOL
Solana" 413.41%
"FIL
Filecoin" 312.96%
"OKB
OKB" 353.91%
"WBTC
Wrapped Bitcoin" 24.78%
"THETA
Theta Token" 279.84%
"EOS
EOS" 141.00%
"TRX
TRON" 191.83%
"BUSD
Binance USD" -0.79%
Look at those gains and imagine if you had tried to short those coins anytime in the last 3 months, it is likely you would have been in a world of hurt. Ignoring the stable coins, BTC is the worst performer at +24%. Shiba shows at 0% for some reason, but it's actually some ridiculously high number like 70000% or something.
And to re-phrease my original question in a blunt manner...what are the BH reasons why someone who doesn't believe in crypto put their money where their mouth is?
Not trying to be antagonistic just looking to better understand
Cheers