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Best Way to Short Bitcoin


ukvalueinvestment

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This isn't meant to be a thread on the merits or otherwise of Bitcoin.

 

It is meant to be a discussion on how best to express a short view.

 

It seems to me there are many ways to short what is, in my opinion, the Bitcoin bubble.  Via spread betting, by shorting investment trusts, shorting the futures.

 

What is the best way to short bitcoin, given it may yet go a lot higher.

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I’d say the investment trusts, you can argue about the price of bitcoin and whether it’s a bubble but the premium you end up paying is steep. So I see it as a way to short bitcoin and the added possibilitiy that bitcoin could stay flat and the price of the trust could go down

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I'd short a basket of the indirect plays like FRMO that don't have nearly the same upside, but have rallied 100%+ on BTC rally. Find indirect plays, quantify the underlying BTC exposure and  downside (upside to the stock) if BTC goes up another 1x 2x 5x 10x, size appropriately and wait for the hype in those types of names to abate. I'm sure there are/will be some penny stock fraud / promotes around coins too.

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I'd short a basket of the indirect plays like FRMO that don't have nearly the same upside, but have rallied 100%+ on BTC rally. Find indirect plays, quantify the underlying BTC exposure and  downside (upside to the stock) if BTC goes up another 1x 2x 5x 10x, size appropriately and wait for the hype in those types of names to abate. I'm sure there are/will be some penny stock fraud / promotes around coins too.

 

I haven't done this, but maybe keep an eye out for companies that add "Blockchain" to their name.

 

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Although I think there is a good chance most if not all of these coins are wipeouts, I would advise against any type of position that would be unlimited downside for you personally. 

From Shorting Bitcoin:

Upside:  Fixed amount

Downside: Unlimited Amount or possibly your entire networth

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How does a company "transition" from iced tea to blockchain? 

 

Can someone let me know what I am missing?  This would be like KO transitioning into BA lol

 

Speaking of KO it better get Nestea on the blockchain soon if it wants to compete.  You wouldn't want to be in a market where all the other teas are on the blockchain but yours.

 

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How does a company "transition" from iced tea to blockchain? 

 

Can someone let me know what I am missing?  This would be like KO transitioning into BA lol

 

It's the best idea anyone had so far. It's the proof-of-work! You have to show that you have worked out with your block and chain or you cannot buy your iced tea (or Coke!). This is absolutely f*king brilliant.

 

http://i2.wp.com/cryptorials.io/wp-content/uploads/2015/08/shut-up-and-take-my-bitcoin.jpg

 

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