If price goes up, then they make a loss in the short selling, but that loss is canceled by the higher value of the now movable 30 coins. If the price does go down, then obviously they make a profit, but that profit is cancelled by the now lower value of the 30 coins the have. Bitcoin kind of has the same ripeness quality as newly mined coins can’t be spent for three months or so. The wheel will most probably revolve with the smarter ones rising to take the place of the more stupid ones. If it is of some value to someone, then if mining was profitable he would have bought new mining hardware.
A Bitmain aligned crypto-news site claims in what appears to be a translation of other local media that Chinese miners have become the biggest crypto short sellers, margin selling bitcoin or eth as a hedge.
“Everyone is short-seller, we do this for self-defense but that will lead to a further decline in cryptocurrency price…
Without short selling, we will be eliminated ultimately, but if everybody keeps doing this, we will finally die together, which is quite heroic.”
So said a Chinese miner called Jin Xin. So suggesting he is effectively going half long and half short in a strategy that in some ways doesn’t make very much sense.
“If I mine 30 coins in the next month, while its price may continue to fall by another 10% according to the current trend, I shall place a short order on...
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