Assets, Bitcoin

What Is the Short Interest in Bitcoin?

Bitcoin is a decentralized digital currency, without a central bank or single administrator, that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain.

Bitcoin is unique in that there are a finite number of them: 21 million.

NOTE: The short interest in Bitcoin can be a risky investment. It involves taking a position that the price of Bitcoin will fall, and if it does not, the investor may suffer significant losses. This type of investment is very speculative and carries a high degree of risk. Therefore, it is important to understand the markets and to do your own research before investing in Bitcoin or any other type of cryptocurrency.

Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services.

As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment.

The short interest in Bitcoin is the number of open short positions divided by the average daily volume. Short interest can be used to gauge market sentiment, as a high short interest indicates that there are more bearish traders than bullish traders.

Previous ArticleNext Article