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Hedge Fund Manager: Near Impossible to Short Bitcoin Bubble

Hedge Fund Manager: Near Impossible to Short Bitcoin Bubble

Reading Time: 2 minutes by on December 12, 2017 Bitcoin, Business, Commentary, News, Tech

After a volatile week of trading, the heavily-debated introduction of bitcoin futures on December 10, 2017, appears to have done wonders for the digital currency.

Bright Futures

The expected dip in value due to the futures launch was averted as bitcoin traded at exactly $17,000 at the time of writing. Instead, the Satoshi Nakamoto’s creation is looking strong as ever with experts speaking optimistically about the future.

One such expert is a hedge-fund manager, writer, and economist Nassim Nicholas Taleb, who had only positive things to say about bitcoin. Amid murmurs and outright claims that the cryptocurrency is a bubble, Taleb brought forward a fresh perspective.

“There is NO way to properly short the bitcoin “bubble,” he tweeted. “Any strategy that doesn’t entail options is nonergodic (subject to blow-up). Just as one couldn’t rule out [five thousand], then [ten thousand], one can’t rule out [one hundred thousand].”

Taleb accurately predicted the outcome of Brexit as well as the 2016 American presidential election. If his intuition is anything to go by, it is still not too late (will it ever be?) to invest in bitcoin.

What’s more, he posted his statement via Twitter just before the launch of futures took place, and before the digital currency resumed its upward trajectory:

Crypto Community Response

Scottish-American cybersecurity giant, John McAfee, echoed Taleb’s thoughts. “Bubbles are mathematically impossible in this new paradigm,” he said boldly via Twitter. “So are corrections and all else.”

McAfee’s statement was met with mixed responses, with many individuals skeptical due to the lack of mathematical proof for the “mathematical impossibility.” McAfee was disinclined to produce such evidence.

One person went as far as to accuse him of making the statement purely as a “PR stunt.”. McAfee is famous in bitcoin community after betting his manhood in favor of bitcoin price reaching $500,000.

Regardless, the rise in bitcoin value speaks for itself – with the possibility of it being a bubble remaining uncertain for now.

CBOE Opens Trading Doors

The volume of initial trades on CBOE exceeded the expected levels and resulted in temporary trading halts being imposed twice to ease the volatility.

Craig Erlam of web trading platform Oanda described the experience as “smooth.” According to the senior market analyst, the fear that bitcoin’s value would nosedive due to short selling was never realized, to the relief of crypto investors the world over.

CBOE will not be the only trading platform to offer bitcoin futures for long, as both Nasdaq and CME Group hot on their tail. The latter expects to have their futures contracts active on December 17, 2017 – just one week after CBOE.

Although bitcoin futures have been well received to date and the cryptocurrency appears to be doing well in general, Reuters expects future growth to be modest.

Irrespective of the outcome, the futures contracts have marked a new era for the combined cryptocurrency industry.

No longer is it necessary to purchase bitcoin directly to profit from it. The centralized marketplace for bitcoin trading has forever changed the game.

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