Post
Topic
Board Speculation
Re: CoinLab News = Price collapse
by
Crypt_Current
on 01/03/2013, 05:15:37 UTC
In addition to the news that CoinLab is gonna manage USA/CA funds from Mtgox, they are announcing a professional, safe and licensed trading platform for US Corporations.

Trading platform = shorting.

3 or 4 medium sized corporations with 3 or 4 multimillion shorts puts the prices in $10 or below in no time.




First of all shorting can only reduce the price on that platform.  Unlike stock markets, actual bitcoins can not be created out of thin air.  If you buy cheap shorted bitcoins and can not withdraw them, it is a 'bucket shop'. 

Second of all, with shorting you get short squeezes.  And unlike the stock market, a bitcoin short squeeze can kill (expose the reality) of a trading platform.  While it is POSSIBLE with paper stocks to withdraw the certificates and have them sent to yourself, NOBODY does this.  With bitcoin many people actually do withdraw from the trading platform and can expose the lack of real bitcoins behind the scenes.

BRING IT ON!

Pretty sure this is exactly what happened with Bitcoinica.  Anyone else remember that?