in the future all cryp coins will die, all of us will die.., my opinion this coins make economy getting worst...
Is your opinion substantiated by facts or logic?
Or you just have some gut feeling there's something wrong about cryptocoins?
Topic: Hedge against BitCoin collapse - page 4. (Read 11691 times)
Is your opinion substantiated by facts or logic?
Or you just have some gut feeling there's something wrong about cryptocoins?
If we can't come to a consensus, we can always find the best hedge statistically (always remember that correlation is not causation)
in the future all cryp coins will die, all of us will die.., my opinion this coins make economy getting worst.., btw there are certain parties attempt to increase the power of bitcoin, of course, those who created it, the goal is to rule the world..
Alt coins are NOT a hedge against bitcoin.
If bitcoin is made illegal or the US govt starts shutting down exchanges, alt coins will crash too. If there is found to be a weakness in the bitcoin protocol, alt coins will crash too.
In fact, anything that would crash bitcoin will likely also crash alt coins. They are the worst hedge ever!
People who say they are a decent hedge understand nothing about investing.
If bitcoin is made illegal or the US govt starts shutting down exchanges, alt coins will crash too. If there is found to be a weakness in the bitcoin protocol, alt coins will crash too.
In fact, anything that would crash bitcoin will likely also crash alt coins. They are the worst hedge ever!
People who say they are a decent hedge understand nothing about investing.
The biggest threat to bitcoin right now is the Bitcoin Foundation itself and companies like the one Yifu started:
https://bitcointalksearch.org/topic/mike-hearn-foundations-law-policy-chair-is-pushing-blacklists-right-now-333824
Regulation of Bitcoin will eventually kill it, the controls start as minor and then become all consuming. Thats how this game works.
https://bitcointalksearch.org/topic/mike-hearn-foundations-law-policy-chair-is-pushing-blacklists-right-now-333824
Regulation of Bitcoin will eventually kill it, the controls start as minor and then become all consuming. Thats how this game works.
Ripple. Global payment network.
I own no LTC or PPC.
Just for posterity, I believe that at one time you had offered to borrow LTC so that you could sell it to have a short position. I don't know if you had completed that transaction but disclosing that you have no position now might not be an objective way of describing your position.
For the record, I too own no LTC or PPC, but at some point in the future would possibly consider LTC. My criteria for a proof-of-work based crypt coin is simply is whether or not sufficient hashing capacity exists. If (when) a Scrypt ASIC gives the litecoin network's total hashrate a boost such that a 51% there too becomes uneconomical then I might be willing to acquire some LTC.
My biggest fear is selfish mining or some other hack on the system.governments.
I would say that going short on futures contracts would be one such hedging opportunity that would pay off on a Bitcoin collapse. The problem with the futures contracts on ICBit, however, is counterparty risk such that your profitable position can be closed prior to settlement date without you seeing the full gains that you would were you able to hold to the settlement date.
The biggest hedge is Litecoin!!!
I think there was talk about IG Index in the UK offering a binary options product
http://www.afr.com/p/blogs/markets_today/ig_offers_options_for_clients_champing_D11zEY3AVo4JZtVOdERuOL
Have not heard much about this, perhaps because the spread was massive.
Any one have any experience with this ?
http://www.afr.com/p/blogs/markets_today/ig_offers_options_for_clients_champing_D11zEY3AVo4JZtVOdERuOL
Have not heard much about this, perhaps because the spread was massive.
Any one have any experience with this ?
Ok lets see, if Bitcoin collapse Litecoin would be the winner.. So Litecoin...
Apparently you did not read the thread before you posted?
Ok lets see, if Bitcoin collapse Litecoin would be the winner.. So Litecoin...
Don't we have Bitcoin put options yet?
Most of the existing puts that I've seen are settled in BTC, so it may be useful for short term market movements but not really helpful if bitcoins become worthless.
Gold and silver for the win. More specifically bitcoin specie made by new liberty dollar. Some very nice looking pieces, not to mention the future resell value that will most likely be attributed to a rising bitcoin and silver price.
A structured sale would be a hedge. Something along the lines of selling BTC at a 20% discount to current price deliverable in 30 days or however long you wish coupled with an option to buy back at 120%. Pricing may need to be adjusted depending on what kind of interest that would generate.
As mentioned before, either fiat (USD) or Gold and Silver
As has been pointed out upthread, you are referring to diversifications, not to hedges. Those are not proportionally inversely correlated to BTC, i.e. if BTC crashes to 1/10 value, the value of your USD does not increase by 10 times.
Normally a hedge is used to maintain a position in an asset, while guarding against a catastrophic loss of value.
As mentioned before, either fiat (USD) or Gold and Silver
I am not too worried about losing my money because I am in for the long run. Who would worry about losing a few thousand dollar with the chance to be upper middle class to stinking rich. When the April crash happened I wasn't to worried, just disappointed that I didn't do any active trading.
The key to sanity and risk management is as you said diversification and thus don't buy all at one time. Average in over time, so you have cash to make purchases on flash crashes. However, everyone is trying to do this now, so the flash crashes have shorter and shorter duration. You could see Risto's thread where they try to calculate when to buy based on being above or below the exponential trend line.
The perfect hedge against bitcoin collapse would be an another cryptocurrency. If the crash begins and enough people would fall into LTC for instance, then a new bubble would start forming there that would attract most of the past BTC investors. Then it would be a mater of days when most of the value would return from LTC to BTC. BTC would keep the bigger part of it's original value and would even stay attractive to new investors. When BTC will fall into USD/EUR, then the investors won't touch BTC for months, because the idea of cryptos seemed to fail.
BTC has to have supporting cryptocurrencies, because otherwise it is looking for support from fiat currencies. And the financial system that rules fiat, does not exactly want BTC to succeed and they will try to use the strenght of their money to break the cryptocurrency idea as a whole. Only way for cryptos to survive the fight against fiat is when they support eachother and be autonomous enough from the traditional monetary system.
The people who speak for bitcoin, should promote more of altcoins, because currently we have this "nr.1 and none" situation that is very unhealthy for the entire process of cryptocurrency evolution.
BTC has to have supporting cryptocurrencies, because otherwise it is looking for support from fiat currencies. And the financial system that rules fiat, does not exactly want BTC to succeed and they will try to use the strenght of their money to break the cryptocurrency idea as a whole. Only way for cryptos to survive the fight against fiat is when they support eachother and be autonomous enough from the traditional monetary system.
The people who speak for bitcoin, should promote more of altcoins, because currently we have this "nr.1 and none" situation that is very unhealthy for the entire process of cryptocurrency evolution.
Agreed all, except also agree with DeathAndTaxes that LTC offers no significant difference, other than it can't yet be mined by ASICs. GPUs are 30X faster than CPUs at mining on Bitcoin and only 15X on Litecoin, so Litecoin didn't even really solve the CPU-only prize. LTC has faster transactions at 2.5 minutes versus 10 minutes per block. I don't have an opinion on whether PPC is a viable investment, other than I explained in the Problem with Altcoins thread why I think PoS can never be secure. Although I believe my hypothesis is correct (about the input entropy), I could be proven wrong.
I haven't done the analysis to verify, but someone claimed it works to buy LTC when it is undervalued relative to BTC and vice versa, I guess based on the trendline ratio.
i heard that there are already trading options ("short" and "long" etc) but i cant recognize that service. but as time goes by, there will be more online services, that offer that stuff.
That would be good. Either that or insurance or bookmakers that pay out in the event of a bitcoin collepse.
You are over invested if you are so worried about it.
If you don't believe in what you are investing, or are worried that it is too risky, then bitcoin IS too risky and is not the investment for you.
There is no perfect hedge....have a little of this and a little of that to back up what you are risking.
I have my stocks, bonds, precious metals, real estate, toys, and a certain "who gives a shit" percentage I play with in bitcoin.
Has it caused me the occasional bit of lost sleep? So far only during the April crash, and only because it was an exciting time not because I was afraid to lose.
I am not too worried about losing my money because I am in for the long run. Who would worry about losing a few thousand dollar with the chance to be upper middle class to stinking rich. When the April crash happened I wasn't to worried, just disappointed that I didn't do any active trading.
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