Topic: the short of a lifetime (Read 4603 times)

Turns out you were wrong. The risk was a swap rate squeeze not a short squeeze.  You still haven't figured this out?

why anyone still has a short after this post is still strange to me


I dont want to be extremely rude but those who are still short are not very smart some even send me private messages and asking why they got short squeezed (people on IRC and chatzy got me warning from day one if anyone lost money you fucking deserve it )

lets do this like for kinder-garden
I= people who went against the short size not need to be me

1. maximum contract available to short 10 contracts
2. I place a bid for 10 contracts at 1 BTC per contract
3. you short all the 10 contracts
4. now I have to spend 2 more BTC to squeeze you out so I place a bid for 1 contract at the price of 2 BTC/contract
5. now you got a margin call and lose money since I am the only one who can sell the contract for you to close your short I can sell it at 3 BTC/contract at this price the short loses are over 100%

so will anyone use 12 BTC to earn at least 10 BTC ? hell yeah

the pool have a maximum 3500 TH so even if Bitfinex add all the hashing power I will need 3502 BTC squeeze the short side and earn at least 3500 BTC  

the only way this type of contract can work is if the total short side is = to the total mined bitcoins = 13,39 millions so there is no way in hell for the bid/long side squeeze the short side


now what ?

if you made money on this contract take your money out just like precaution if bitfinex will reverse or cancel the contract  

if you lost money on this contract well you kinda deserve it, this is a type of exotic contract so you can argue in front of consumer protection that is not suited for you, (lol) but that's likely to be just a lose of time and you will have to take it in the ass  


next time when you have money to spend on garbage try http://nycgarbage.com/ i dont earn any money from that but is kinda cool to sell actual trash  

 

good profits for a 24h short  

For that matter, how about selling 100 TH1 in the first tranch in a market that had no bid depth?
I'm speculating as it is possible that there was some bid depth - but I'm confused at to what price they sold the original 100 TH1.  Maybe they slowly released them as the initial price was very high.

With a 10% difficulty increase, someone calculated 1.15.  I'm not an expert on difficulty increases. It seems like anything from 5-30% is possible.  So the current 1.15 is a decent price, but I wouldn't risk it unless I knew that mining difficulty was going to slow down.

I'm guessing that the TH1 swap rate is going to drop to 10-20% APR - so you won't get significant income from that.  But if not, the extra swap revenue can increase the value of the TH1 contract.

The great thing about price discovery is that people are discovering that mining contract prices are inflated (by losing 30-40% of its value in one day).  Which isn't news to most people who know how to run a bitcoin mining calculator.  This is probably great for the "market", but I'm not sure about how selling over-priced mining contracts to its customers helps Bitfinex?

dumping more hashing power on the market? isn't this good for shorts?

We will be adding additional hashing capacity to TH1, increasing it to a total of 200 THS (terahashes per second) in an effort provide greater liquidity and enhance price discovery in both the exchange and swaps market. The additional capacity will be added immediately after the next block is mined.

So this thing is now worth more and I am going to get murdered on my short, suddenly?

Bitfinex dumped some more TH1. Apparently, they are declaring it only after the fact.
The dump started before the announcement was added. Also the extra swaps were added before the news release. Not fair, bitfinex. At all.

bad felling, I cant understand why is this

What happens if the difficulty shoots up faster than everyone predicts?

The bold part, can someone ELI5 please?

The bold part, can someone ELI5 please?

The bold part, can someone ELI5 please?

Introducing mining contracts
Posted: about 4 hours ago

We are pleased to offer mining contracts as trading product on the Bitfinex platform. We have worked for some time to develop what we believe is a superior approach to “cloud mining” that is smartly packaged to offer simplicity and transparency. While we are very excited about this offering, please note that we consider this a “live beta” as we continue to tweak the product to meet the need of our traders. Because it is a beta phase product, the first “tranche” is purposely small and short-dated. As we gain experience in administering this product, assess demand, and incorporate feedback from our traders, we will introduced larger and longer dated tranches. The contract specifications follow:

Trading Pair: TH1BTC
Tranche Size: 100 THS (terahashes per second)
Expiration: 3 Months
Pool: TH1 is part of a larger pool (~3,500 THS total). Statistics regarding this pool will be posted regularly along with blockchain transaction id’s will be posted and frequently updated.
Pool Fee: 3%
Hosting: All hosting, power and maintenance cost for the duration of the contract is included in the price per TH.
Margin: TH1 can be borrowed and sold short. We will start out with a 25% Initial Margin Requirement, but we see that going as low as 12.5% in the near future.
Dividends: The blockchain time stamp on block rewards will be used to determine “holders of record” at the time that the block was mined. Positions will be aggregated between balances in the Exchange Wallet and trading position in the trading wallet to determine a “net position”. Dividends will be computed as the pro rata share of the block reward less the pool fee. Longs will get paid dividends in their default wallet. Shorts will pay dividends from the Trading Wallet only. Longs who provide TH1 swap liquidity will still receive dividends.
The product is designed as a “depleting asset”, whose value will continue to go down all the way to zero at expiration. Coupled with the fact that all hosting and maintenance is already included, we expect fair value analysis to be much easier for the average trader and cloud miner. TH1 will also be the first shortable mining contract (that we are aware of) further enhancing efficient price discovery. Trading will commence at 9 AM EDT on Monday September 15, 2014. We welcome your feedback and, as always, we thank you for your business and continued support.