• UnderpantsWeevil@lemmy.world
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        6 months ago

        Not when it’s going up.

        The fact that a Mastodon instance that hasn’t been updated since 2022 has a $6B valuation should be in the first chapter of every Econ 101 textbook.

    • KairuByte@lemmy.dbzer0.com
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      6 months ago

      Eh, this I don’t agree with. It’s the exact same concept as regular stock ownership, just in reverse. The only time it’s a problem is if you have reasonable foreknowledge of the stock price change, or have some sort of conflict, same as stocks.

      • Lemming6969@lemmy.world
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        6 months ago

        It’s not the same. In one case you actually buy a stock and hold it because you believe it will go up. You are free to sell if you think it’ll go down. On the other side you must borrow a share and sell it with a promise to buy it back in the future. The outcomes and mechanics of them are not equal but opposite, and shorting has many pitfalls, is damaging to the market, damaging to bid/ask, a conflict of interest for institutional lenders, and a number of other issues.

        • hglman@lemmy.ml
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          6 months ago

          We shouldn’t live in a society based on the random walk of some loosely couple indicator of some arbitrary entities. No shorts bc no stocks.