Looking back at the past and looking forward to the future: Why is short selling not cost-effective?

Short selling is theoretically capped at a 100% gain but carries unlimited loss potential, while going long has a maximum loss of 1x but infinite profit potential.
The article argues that short selling can distort one's mindset, fostering hatred for the industry and leading to risky behaviors like empty promises.
Key beliefs highlighted: humanity will always print money, and Bitcoin is in an eternal bull market.
The $Luna crash example shows wealth transfer from bulls to shorts and exchanges, but short sellers also suffered during its rise from $0.3 to $120.
The author shorted $UST (Luna's stablecoin) at $0.9, a rare opportunity with limited downside (10%) and high upside (90%).
Stocks like $TRB can explode unpredictably (e.g., $10→$550), wiping out short sellers even with strong margins.
Final advice: Avoid habitual short selling (except for hedging); some profits aren’t worth the risk, and bears should often stay inactive.

1.Why is short selling not cost-effective?

Theoretically, short selling can only earn you 100% at most, but you may lose a lot.

The maximum loss when going long is 1 times, but the profit may be infinite.

Although some people argue that since all altcoins in the cryptocurrency circle have strong gravity (team shipments), short selling is not as bad as imagined.

However, I still rarely go short (except for hedging), and the deeper reason is:

Short selling will make people become twisted and start to hate this industry (seeing the dark side will only deepen the hatred)

Once hatred takes over (it will definitely happen), and once faith is lost, one day one will definitely start to try empty promises, but the consequences, as you know, will be terrible.

What you need to know:

Humanity will always print money√

Bitcoin Eternal Bull Market√

--------Dividing line--------

2. How much profit doesthe $Luna short position make?

For 22 years, I have been criticizing the Luna scam on Twitter every day, to the point that there was a period of time when Luna's brainless fans chased me and insulted me every day, so I have a say.

$Luna crash, in essence:

Luna Bulls’ Fortune

↓Moved to↓

Luna short + CEX.

After all, it was once one of the top 10 projects in terms of market value, and there were many such wealth transfers, so the Air Force made a lot of money.

But you can't just watch the thief eat the meat and not watch the thief get beaten.

When Luna rose from 0.3 USD to 120 USD, countless short sellers’ money had already flowed into the long sellers’ pockets, so short selling was still not worth it.

It was one of the few times I opened a short position. I did not short Luna, but short $UST (Luna's stablecoin).

I still think this is a great decision. As UST is a stable currency, I started shorting it at around 0.9. Theoretically, I could lose less than 10% and earn 90% by profit.

However, this short-selling opportunity only occurs once every few years.

Moreover, every once in a while you will encounter stocks like $TRB , which will go through a nuclear explosion and pull up (no fundamentals, but $10→$550 in a few months). Even if you have a god-level margin, all your air force's ammunition will be cleared out in an instant.

Refer to what @dotyyds1234 said