It’s difficult to short-sell, which leads to inefficient markets (10/10)


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In recent weeks, retail investors (who also happen to be the core fans of Bitcoin) have been in an all-out war with short-sellers -- i.e., investors who profit when the price of a security falls. Some even view short-sellers as evil. But short-selling is a natural part of the investing cycle that helps lead to price discovery.

Bitcoin is really difficult to short-sell on most platforms, which means we're not getting anywhere near a true price discovery. This market inefficiency is one of the reasons Bitcoin is so exceptionally volatile.


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