Selling something that you do not have!
How this idea sounds? If interested/exited continue reading (if not you already know what I will be talking about save your time and leave now)
‘Selling something that you do not have’ is one of the relatively good ideas that the mankind have come about, and it have nothing to do with cheating and scamming. And BTS X will use it. And NO! Bytemaster is not the one who invented it, and BTS X will not be an experiment on if this idea works… It is tested and it works.
Two major ways have been developed on how to sell something that you do not own, and achieving reasonable certainty that the party buying what you are selling will actually get what you sold (or at least a good alternative of it).
The two ways ‘Selling something that you do not have’ is done are:
First borrow what you are selling
The first way (and somewhat easier to understand way) how to ‘Selling something that you do not have’ is to simple borrow the asset before you sell it.
How it works: If you think that 1 month from now the flour price will be much lower after the new crop. You go ahead and borrow 5 kilos from your neighbor and promise to return it in 1.5 – 2 mo. (maybe promising to give 6 kilos back). After getting the flour you sell it at the current price let say 10 CNY/kilo. You get 50 CNY. After the new crop comes and you are correct and the price is now 5 CNY/kilo of flour. You can by 6 kilos for 30 CNY, give back the 5 kilos of flour plus (1 kilo as interest) back to your neighbor and end up with 20 CNY profit in your pocket.
Provide sufficient amount of money, so if you do not deliver on your promise the buyer will get those funds.
‘Selling something that you do not have’ – why/where it is useful?
It solves the problem that I call ‘The world is born long phenomena’‘The world is born long’
Some markets simple cannot exist without it
Assets coming to life, i.e. born, (and being tradable by definition), allow everybody with a long view to trade them and make a profit (if he is correct). It is usually not the case for the participants with a short view. Participants that successfully predict the downward direction of same asset do not have the tool so readily to profit from their correct prediction. To profit from their correct predictions shorts need some tool/system mechanism to cash on their correct prediction.
Let put it in example:Today I (tonyk) and luckybit wake up in the morning. I think that maidsafe will go down to almost 0 in the next 1 year and he thinks same share will go through the roof. To follow his prediction he just buys as much maidsafecoins as he likes and waits for his prediction to come true. If it does he me becomes a rich man. It is not the same with me (the guy with the short view/ thinking that the price will approach 0) – in the sense that I do not have investing strategy to profit from my correct views, at least not one born with asset itself.
[Spelling/grammar edit coming soon]If interested to learn more put some plusses and/or send some tips and I will continue explaining in much greater detail.