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Who's lending bitcoin so they can short it ?
I'm trying to wrap my head around this... I know the financial mechanism behind short selling any asset. It's "borrow asset ->sell asset -> buy it back at lower price -> give asset back to lender". In order for this to work, someone has to lend Bitcoin in the first place to the short seller. So here are my questions : WHO DOES THAT ? What's in it for them ? Would short selling still be possible if every bitcoiner used self custody? Isn't this an element of proof regarding paper bitcoin issued by exchange platforms ? Thanks for your help ! submitted by /u/RedHill92 [link] [comments]
I'm trying to wrap my head around this...
I know the financial mechanism behind short selling any asset. It's "borrow asset ->sell asset -> buy it back at lower price -> give asset back to lender". In order for this to work, someone has to lend Bitcoin in the first place to the short seller. So here are my questions : WHO DOES THAT ? What's in it for them ? Would short selling still be possible if every bitcoiner used self custody? Isn't this an element of proof regarding paper bitcoin issued by exchange platforms ?
Thanks for your help !
[link] [comments]
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