Why do some people like to short BTC, or make short-selling comments?
I try to analyze it, just to throw out some ideas, which may not be correct, you can refute it.
Generally speaking, people come to the cryptocurrency circle to make money, you can't refute this, right?
Then to make money, you need to buy low and sell high, which is the core logic of making money, you can't refute it, right?
At this time, there are three camps
Camp A, people who have BTC in their hands, they have only one goal, which is to sell at a high point to make money. The high point here is very subjective, that is, if it rises to 70,000, some people think it is the top, the high point, so he sells it and makes money. No matter what point he buys, whether he hoards coins or plays contracts or other strategies, in the end he must want to sell at a high point, right? You should still not be able to refute it.
So what does he hope for at this time?
BTC keeps rising, and it would be best if it rises to shocking levels. Because they have BTC in their hands, if it rises, they make money, I am in Camp A.
Let's talk about the B camp, which is the air force, the bearish people, the short sellers, and the people who are playing games with the A camp. These people don't have BTC in their hands. If they have 10 BTC, will they be bearish? Will they short sell? Unless they are a fool, right? Of course, I exclude hedging strategies here. Large holders of coins will hedge. Then the situation is obvious. It is highly likely that they don't have BTC in their hands. If they don't have it, they have to be bearish, so that they can have a chance to make money, because the more BTC rises, the more they can't afford it. You can understand why many people like to be bearish on BTC, right? Although they think it is valuable, they can't afford it, so they can only do this.
There are also people in the C camp. This group of people is the most powerful. Sometimes they are bearish and sometimes they are bullish. They look for opportunities in the process of ups and downs. So sometimes they are bearish and sometimes they are bullish. They hope that the market can develop in the direction they see. They have no faith in their hearts. As long as they can make money, it's fine. In fact, these people are very realistic, because in essence, they have faith in order for BTC to rise to the sky in the future, so that they can become one of the few people who own it. So there is no difference between these three groups of people in essence. They all want to make money, but it depends on whether you can stand in the right camp. If you choose the wrong camp, I believe that you will not have a good result in the long run.It sounds harsh but it's true.