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RE: A Simple Example of Shorting the U.S. Dollar With BitShares
I see what you mean. Let's simplify it further though.
If I use USD to buy some cigarettes cheaply and then sell them for a higher price, am I shorting the USD?
I would answer yes. You decided to hold an asset (cigarettes) that you felt would appreciate relative to USD.
No, but the USD wouldn't be on loan, right? If so, then... yes, maybe that would be a short?
Here's how I understand what a short is:
bitUSD's in my example are created via borrowing.
I think the whole borrowing angle comes from stocks. As unlike futures markets you need to borrow stocks from long term holders in order to short.
Taking a currency on margin, is different to borrowing a stock.
In my head there's something very different to a security and a currency.
If you buy something with dollars, even margined, borrowed dollars .. I don't think it's shorting dollars unless what you're buying is another currency or something 'big' rather than just a small asset.
Can you see that perspective?
Which is the case here, yes? Unless cryptocurrencies are not currencies?
I see that perspective, but what I'm describing seems much like what I find when I Google what it means to short a currency. Either way, thanks for clarifying your perspective.