Quote from: nameless888
Just remember : it doesn't matter how many manipulators out there try to crash this, it only fails if we collectively decide to give up on it. If we keep our faith in it and enough of the currency ends up in stable hands, it means less available for people trying to end it.
Quote from: zvs
What, you think it was worth $250?
w/o the ability to short, there is a key moderating factor for these BS spikes missing
w/o the ability to short, there is a key moderating factor for these BS spikes missing
Quote from: nameless888
I'm new to this and can't even off the top of my head work out what your post means. (thanks if you can explain a bit though.) I'm just certain that there's groups out there trying to cause problems, and I don't think the currency should naturally be this volatile.
Eh, patching this together from old thread.
It means that if there was a reputable exchange (MtGox, Bitfloor, Bitstamp come to mind) that offered the ability to short Bitcoins then there would be a lot more sell pressure on these huge spike ups. Shorting would essentially be you borrowing bitcoins from the exchange in hopes that they would drop in price. So then if everything went well, you'd 'cover' your position (buy back the borrowed bitcoins) at a much lower price. If they dropped from $100 to $50, you'd make $50 (minus commission fees) for each bitcoin you borrowed. If you had $1000 in your account and shorted 200 bitcoins at $100 and they went up to $105 (these numbers for simplicity's sake), then the exchange would forcibly cover your position, so that you'd be damn near $0 and they wouldn't lose any money on the deal... that is, if it was working properly and not lagged 10 minutes behind... in such a case, all sorts of shenanigans could ensue w/ how volatile the bitcoin price is.
(well, there's also the short squeeze. i guess on some bizarre spike to $250 that takes place over such a short period, it might cause it to go even higher)