Category: Theory

We are in a bear market and bitcoin has disappeared from the news. In my post about the gathering storm clouds on the Bitcoin horizon, I had little good to say about the state of the markets. The market is down now and good investors know to buy when there’s blood on the streets and sell when there’s music in the air. So I suggest we now use the bloody streets to our advantage. The market-shaking brutality can be emotionally exhausting. That’s why it’s elementary for investors to be convinced about their investment. So: what are we actually buying? Or, put another way, what is the real value of Bitcoin?

Trading futures contracts is another outgrowth of the stock market. Outgrowth sounds rather negative, I know, but the original idea of it is quite positive and offers great benefits. Nevertheless, many investors use the asset class for pure speculation. Cryptocurrency platforms caught up and thus it is also possible to trade futures with Bitcoin and co. What is the origin of this financial product and what advantages does it offer today?

Short selling and long buying are terms used in stock trading. They were in the news not least because of the so-called «short squeeze» at the beginning of the year in connection with the Gamestop share. The film The Big Short is also dedicated to this topic: A hedge fund manager who saw the financial crisis coming in 2007 and therefore made an enormous profit with short positions.