I think ASICMINER is the greatest Bitcoin investment at the moment, but I also think that the prices are too high right now to invest more than a couple of shares with some risk.
About hedging, shareholders can do it on their own with other ASIC companies. I sold about 1/4 of my shares very high yesterday to hedge the risk and buy BASIC-MINING shares with the proceeds. They have an AVALON batch 2 pending delivery and another batch 3 order on the way so I think if you are looking of another mining security with a good potential, that is not overvalued right now, it is worth making it some % of your portofolio on btct.co. And there are others, too.
Anyway, it's really nice to see that stock price above 2, and I will hold most of my shares for sure. I just wouldn't buy more at the current price. But I wouldn't call you silly if you did
About hedging, shareholders can do it on their own with other ASIC companies. I sold about 1/4 of my shares very high yesterday to hedge the risk and buy BASIC-MINING shares with the proceeds. They have an AVALON batch 2 pending delivery and another batch 3 order on the way so I think if you are looking of another mining security with a good potential, that is not overvalued right now, it is worth making it some % of your portofolio on btct.co. And there are others, too.
Anyway, it's really nice to see that stock price above 2, and I will hold most of my shares for sure. I just wouldn't buy more at the current price. But I wouldn't call you silly if you did
Agree with hedging. To build on what you said, here is another one of many ways of hedging. That is to write covered calls at BTC-TC. A covered call will reduce your purchase cost, therefore reducing your capital at risk. Hedging partially.
Another way of hedging is to figure out ASICminer stock beta, and purchase a security that has a beta value completely opposite of ASICminer share. Suppose ASICminer share has beta of 1 in relation to BTC/USD, then purchase a security of -1 will complete the hedging.
Hedging is done when you achieve a beta neutral status or a net beta equals zero in regards to a basket of securities. With beta neutral, the only way *not* to profit is having a static market. A static market is no shares changed hands and no share price movement. Static market is impossible given BTC's volatility.
