That's a great point how one can buy up 50k in coin You make a very good point.... Something fishy here
Where did I say 183k by New years LOL? Just look at the previous post halvening rally to get a time frame.
There seems to be the assumption that Apple would be buying in small enough increments not to influence the price? Actually the whole point of the OP is that bitcoin, like few other assets, has a fixed supply. If you want to buy more than the market is offering you have to raise the price. Eventually someone will sell. What am I missing?
I'm not saying fishy. And all of this is good in the long run if the weak hands sell now, and above 100k, there is no more supply.
Any asset that can be shorted does not have a fixed supply. Every time a bitcoin is shorted, a new virtual coin is created that can be sold to another buyer. As an example, there are frequently stocks that have 130%+ of the issued shares sold.
When you say shorted are you referring to those shorting the bitcoin etfs? And when you say a new virtual coin is created during the shorting process where does that coin go when the short is covered?
I was referring to the bitcoin itself to keep the example simple. But it could also apply to the bitcoin ETFs. However, some of the short bitcoin ETFs use derivates instead of shorting the actual bitcoin. Simple example, if I short one bitcoin and you buy it. You can now turn around and sell that bitcoin to someone else. However, before I shorted it, that bitcoin did not exist.
So how is shorting bitcoin itself making it possible to create another bitcoin ? Is the coin being mined? I'm not fully understanding how this comes to play
I think it is easier to explain by showing a concrete example using stocks, then once you understand the concept you should be able to see how it applies to bitcoin. Bitcoin itself is a virtual asset so trying to explain it that way is more complex. Let's look at the most shorted USA stock right now - LGMK https://finance.yahoo.com/quote/LGMK/key-statistics/ Notice two numbers: a) The "Float" (i.e. the number of shares available for trading) is 1.34M b) The "Shares Short" is 3.81M. How is this possible since you cannot short a stock without borrowing the shares first, then selling to someone else? It is possible because if John borrows 100 shares of LGMK from Sue, then shorts (i.e. sells) those shares to Tom. Tom can now turn around and loan those same shares to Mary, who can then short (i.e sell) them to Jim. So the original 100 shares borrowed has now been sold short twice, creating 200 new virtual shares. This in theory could create an infinite number of virtual/artificially created shares. However, in practice, the more of the virtual shares that are created the harder the brokers will make it to borrow more shares for shorting, by raising the borrowing cost or margin requirements. So using the LGMK example, 2.46M (3.8M - 1.34M) shares were created by shorting.