What's the meaning of bitcoin long and short
The earliest is a kind of network virtual currency. It is characterized by decentralization, anonymity, and can only be used in the digital world. It does not belong to any country or financial institution, and is not subject to geographical restrictions. It can be exchanged anywhere in the world. Therefore, it is used as a money laundering tool by some criminals. In 2013, the U.S. government recognized the legal status of bitcoin, making the price of bitcoin soar
< H2 > extended information:bitcoin is e-cash similar to e-mail. Both parties need "bitcoin wallet" similar to e-mail and "bitcoin address" similar to e-mail address. Just like sending and receiving e-mail, the remitter pays bitcoin directly to the other party through a computer or smart phone according to the recipient's address
starting from the essence of bitcoin, the essence of bitcoin is actually a special solution generated by a bunch of complex algorithms. A special solution is one of the infinite (in fact, bitcoin is finite) solutions that can be obtained from the equations. Every particular solution can solve the equation and is unique
many websites for technology players have begun to accept bitcoin transactions. Websites such as mtgox and btcchina, as well as some Taobao stores, can even accept services such as bitcoin exchange for us dollars and euro. There is no doubt that bitcoin has become a real currency in circulation, rather than a virtual currency like Tencent Q coin
Short refers to selling positions, can also be called use, sell a certain type of currency loans, bullish. Do long: do and refer to the multi warehouse, can also be called Lido, also known as multi warehouse. Buy some kind of loan currency and be bearish
Long means that the price will rise after estimation, so buy the contract and sell it at sky high price after the price rises in the future. Net profit. Short selling means that the potential will fall after estimation, so sell the contract and buy the contract at a low price after the price falls in the future. Net profit2. For hedging: to be long means to evade or wash away the risk of proct cost expansion caused by future price rise, and lock up the cost in advance. Short selling means to evade or wash away the risk of profit rection caused by the price decline in the future, and lock in the profit ahead of time
extended data
burst, under some special conditions, the customer's equity in the investor's margin account is negative. When the market changes greatly, if most of the funds in the margin account of investors are occupied by trading margin, and the trading direction is opposite to the market trend, it is easy to burst e to the leverage effect of margin trading
if the position explosion leads to the deficit and is caused by the investors, the investors need to make up the deficit, otherwise they will face legal recourse. The bigger the leverage is, the closer it is to the burst. We should be cautious when adding any leverage
in a recent article in the New York Times, a Venezuelan economist described how bitcoin became a part of Venezuela's daily life, so that on a mainstream bitcoin trading platform, Venezuela's trading volume ranked second only to Russia in the world. But bitcoin is not just used to protect wealth in extreme conditions. In general, bitcoin is also an excellent choice for portfolio diversification, and it should be seen as part of a comprehensive wealth preservation strategy.
Token Network Forum provides: if you want to short, you also need to have the corresponding capital. At present, as a new player, it is difficult to buy a large number of bitcoin. And because most people are in the holding state, it is difficult to make bitcoin circulate with each other
buy a lot of bitcoin and let it continue to buy high and sell low. If you can hold on, bitcoin may be short
as long as you can continue to spread the shortcomings of bitcoin and rece the number of people who hold bitcoin, it will basically affect the operation of the exchange. If bitcoin can't be traded in circulation, there will be only some learning
the principle of bitcoin shorting:
this shorting is to convert your money into more bitcoins. However, in order to make money, after you get more bitcoins, you can only make money if bitcoin rises. Like China's stock market, there is a reason to increase positions when it falls. But what I want to tell you is that short selling can't make money
different from the short principle of spot market, the short principle of spot market can make money when it falls, and the position in hand is unchanged. But bitcoin changes your position. In the same way, China's stock market falls more and more, sharing the cost of building positions equally, and then waiting to rise
after understanding the principle of bitcoin shorting, we get the answer: in short, this kind of shorting is actually false
1. A little thought on currency
at present, the currency issued by all countries in the world is basically credit currency. For example, the US dollar has been decoupled from gold since the Bretton Woods system. It is generally believed that the value of the modern dollar is supported by the national credit, or national strength and military strength of the United States
however, this is specious. Because the national strength and military strength of the United States cannot be quantified, who can tell me how much the national strength and military strength of the United States are worth? Since it is impossible to quantify, how can we ensure that the US dollar is not printed too much? In fact, there is no guarantee. On the other hand, it says "in God we trust" on the dollar, which is to tell you clearly that the dollar is actually a kind of faith. It's like trump supporters shouting, "America! USA! ", People's trust in the dollar is not purely rational, but a mixture of rationality, pride, sacredness, speciousness and habitual thinking
and this kind of trust is also fragile. In recent years, for example, the Thai baht and ruble have dropped by 40% or 50% overnight, which is also common. Even more outrageous, for example, the government of the Republic of China basically cheated on the golden yuan
bitcoin is also true. Its value comes from trust, but it is not backed by the government's credit endorsement. The letter of bitcoin is a more pure letter, because it is more invisible than the legal coin, but there is a small group of people who believe in it, such as me. This kind of letter comes from the simplicity and strength of bitcoin technology, from the ideas beyond the times contained in it, from the dissatisfaction with the existing monetary system, and from the natural yearning for progress of human beings
2. Bitcoin price and reflexivity
Buffett's value investment theory is very popular: because of people's fear or greed, the price of a thing may temporarily be higher or lower than its value, but it will eventually return to the value itself
Soros's view is that because of the fragility of human nature, a thing can never return to its value. That is to say, the correction must be over correct. When the value of a thing is absolutely undervalued, then in the process of rising, people's awareness of its rising is constantly strengthened, which often leads to crazy buying, and the final price will rise to its own value, and vice versa
in this process, the rise of price leads to people's pursuit of a thing, and people's rising expectation will continue to push up the price of this thing
Soros calls it reflexivity
for example, there is a prophet in the village. He told us that gold would go up and we should go to buy gold. Everyone flocked to buy gold. The supply of gold was in short supply, and it rose as expected. So everyone said that the prophet was right
this process has nothing to do with the basic value of gold or the actual demand for gold
if you look at it with a magnifying glass. In this process, the bullish view of gold is constantly strengthened. Because gold also rose in the process. If in the first rise callback, someone sold. When it goes higher for the second time, this person will feel that his operation is particularly stupid, so he will not easily sell when he buys again next time. Even if he sells again next time, there will always be a time when he will "learn to be smart" and no longer sell
man is also a social animal. So this expectation of rising will continue to spread and "learn" from each other, aggravating this weakness of human nature
often when a bubble burst, most people could not escape. A few rational people can run away, a few win the majority and make a lot of money. In the book mob, it is said that the IQ of a group is often lower than that of a person. In management, this is called herding. In China's stock market, this is called "retail dividend". You don't see how many people earn money every day on the platform, even wealth is free.
1. Which conditions are suitable for Solo mining
the first thing to know is that not all electronic currencies are suitable for mining in solo mode. For video card players, if they dig bitcoin in solo mode, they may not be able to dig one in a year
friends who play Shanzhai coins often encounter such problems. It's hard to find a mine pool. It's hard to find a "black mine pool". What should we do? The only choice is to use solo method for mining
generally speaking, if your mining speed is above 1000m (SHA-256 algorithm), or above 1000K (scrypt algorithm), and the current difficulty of currency is below 0.5, you can consider solo. In a word, the greater your computing power, the lower the difficulty, the more suitable for Solo mining< How to set it
(1) download the wallet software of the e-money you want to dig, install and synchronize the data, and then close the wallet software
(2) click system "start", "run", enter% appdata% in it, and then click OK (WIN XP and win7 systems both operate in this way), or press "win" key and "R" key at the same time to open the running interface.
Bitcoin has no potential value. As a value investor, Buffett favors companies that are undervalued by investors, generate stable and regular cash flow, and increase book value. For Mr. Buffett, bitcoin does not generate revenue or dividends. On the contrary, the value of bitcoin is just the price people are willing to pay for it. In this respect, bitcoin is no different from the tulip boom of 1637< As a result, Buffett believes that bitcoin has no intrinsic value
however, many analysts think there is a bubble risk for bitcoin's strong momentum since 2020. From 2002 to 2009, Rosenberg, chief economist for North America at Merrill Lynch, said, for any security, I think it is extremely abnormal for the price of bitcoin to rise in such a short period of time Rosenberg thinks bitcoin has become the biggest market bubble at present. p>