Bill Gates says he’d ‘short Bitcoin’ [BTC] : Tyler Winklevoss responds
Tyler Winklevoss fired back at Bill Gates after he said that he would ‘short Bitcoin if I could’. Tyler mentioned that there was a way to, specifying to Gates how to do so. He said in a tweet:
“Dear @BillGates there is an easy way to short bitcoin. You can short #XBT, the @CBOE Bitcoin (USD) Futures contract, and put your money where your mouth is! cc @CNBC @WarrenBuffett”
He was talking about the futures contract signed between cryptocurrency exchange platform Gemini and exchange holding and futures trading company Cboe Global markets. This was the first US Bitcoin futures trading venture, allowing transparency, efficient price discovery, deep liquidity and centralized clearing.
The partnership with Gemini allowed it to trade Bitcoin assets with liquidity from the exchange. The coin was identified with the ticker symbol ‘XBT’.
The official post by Cboe says:
“XBT futures provides a centralized marketplace for participants to trade based on their view of bitcoin prices, gain exposure to bitcoin prices or hedge their existing bitcoin positions.”
Bill Gates stated that cryptocurrencies are a “kind of a pure ‘greater fool theory’ type of investment” on CNBC’s “Squawk Box”. He stated that as an asset class, they aren’t producing anything so that investors shouldn’t expect it to go up. He also said that Bitcoin and ICOs are some of “the crazier speculative things”. While he did support the underlying technology of Bitcoin and cryptocurrencies, blockchain, he said:
“I agree I would short it if there was an easy way to do it.”
‘Shorting’ refers to the process of selling a stock (coin, in this scenario) taken as a loan from a broker at a high price in hopes that it will go down. The loan will be repaid by repurchasing the stock, optimally at a lower price. The profit is made from the difference between the prices it was sold at, and the price it was bought at after the stock goes down in value.
User R0b5ter on Twitter echoed the sentiments of Winklevoss, saying:
“Gates and Buffet, dinosaurs neglecting the incoming asteroid.”
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