Topic: Hedge against BitCoin collapse - page 6. (Read 11691 times)
Some precious metals and USD will help, but there is no perfect hedge at this time IMO.
There is so many hedge against BitCoin, "anything else other then Bitcoin"
Hedge against Bitcoin collapse:
How about BOFI (NASDAQ)?
They are a relatively small bank headquartered in San Diego, CA that is trying to be an online bank to compete with the traditional branch model bank.
Or you can buy a stock which may benefit from Bitcoin going mainstream:
Consider TSM (NYSE).
A Taiwanese semiconductor company which may benefit from increased mining activity.
I do not own shares in either company.
How about BOFI (NASDAQ)?
They are a relatively small bank headquartered in San Diego, CA that is trying to be an online bank to compete with the traditional branch model bank.
Or you can buy a stock which may benefit from Bitcoin going mainstream:
Consider TSM (NYSE).
A Taiwanese semiconductor company which may benefit from increased mining activity.
I do not own shares in either company.
I agree with the level-headed rationality in the recent posts by subcoin, Sage, and Internet. However, I have not verified that claimed relationship with Litecoin.
I am not sure if any of the altcoins are viable enough (maybe Litecoin is?) to really trust as a replacement. My problem with Litecoin is the only thing it really changes is that GPUs can mine it. Seems it would be subject to most of the same pitfalls that could befell Bitcoin.
If we are hedging against market saturation, that would be a stronger rationale for Litecoin. But an altcoin needs a compelling use-case.
I am not sure if any of the altcoins are viable enough (maybe Litecoin is?) to really trust as a replacement. My problem with Litecoin is the only thing it really changes is that GPUs can mine it. Seems it would be subject to most of the same pitfalls that could befell Bitcoin.
If we are hedging against market saturation, that would be a stronger rationale for Litecoin. But an altcoin needs a compelling use-case.
If BTC goes down due to some network instability or government intervention, an alt-coin might eventually take it's place. That alt-coin may not exist yet, but a basket of all current alts may be seen as a hedge in this scenario.
If BTC goes down due to it just not being practical, and no alt-coin able to do any better, I don't see a way to hedge that. Perhaps some things can partially fill the hole BTC leaves, which would count as a hedge, but not sure what that would be. (I guess that's your questions
)
If BTC goes down due to it just not being practical, and no alt-coin able to do any better, I don't see a way to hedge that. Perhaps some things can partially fill the hole BTC leaves, which would count as a hedge, but not sure what that would be. (I guess that's your questions
) 
Don't we have Bitcoin put options yet?
heard the same....but what was the name again
Litecoin!
Look at the charts. When Bitcoin is in it's bubble cycle, move to Litcoin. When Bitcoin corrects, move back to from Litecoin to Bitcoin.
In other words, buy the undervalued crypto. Right now Litecoin and Bitcoin are the only real players.
Look at the charts. When Bitcoin is in it's bubble cycle, move to Litcoin. When Bitcoin corrects, move back to from Litecoin to Bitcoin.
In other words, buy the undervalued crypto. Right now Litecoin and Bitcoin are the only real players.
I am looking for the perfect edge against a bitcoin collapse. My biggest fear is selfish mining or some
other hack on the system. Not so much worried about bears, volatility and governments.
other hack on the system. Not so much worried about bears, volatility and governments.
Bitshares aims to do that. Protoshares are almost all mined out. http://invictus-innovations.com/
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why would gold and silver not be a hedge to bitcoin?
Would gold or silver go up when Bitcoin crashes?No, they will remain at the same price.
Both are excellent choices to diversify your investments.
But, technically, they are not a hedge to Bitcoin.
I'm sorry for being a pain in the ass, but people misuse the term hedge.
Can you think of anything that would go up in price when BTC crashes,
AND it would go up BECAUSE the BTC crashes?
If you find something like that, THAT would a hedge to BTC.
Everything else is just diversification of investments, not hedge.
Talking about zetacoin 
Someone mentioned peercoin (PPC). I do see it as a hedge in case bitcoin drags its feet too long in implementing proof of stake. Obviously POS in bitcoin would have to be a bit different since the 21,000,000 cap is inviolable. Ripple is no threat at all that I can see. It has the same weaknesses as Liberty Reserve, e-gold, etc. plus its own unique problems. When you read the articles saying to buy gold/silver remember these are products people get paid to sell you. No one makes a living telling you to hold cash but in deflation it is king. Also in 20 years they could be mining the asteroids which are chock full of gold, platinum, etc. I see this as very long-term bullish for BTC.
Don't we have Bitcoin put options yet?
That would be the only way to hedge it if you were sure the options wouldn't be insolvent in that case.
All the other suggestions are not a hedge because Bitcoin is not yet large enough to be inversely related to them.
Litecoin is probably not a hedge since most everything that affects Bitcoin also applies to Litecoin.
Another altcoin could be a hedge, but which one is viable if Bitcoin is hacked?
More likely than not if Bitcoin is hacked or there is a loss of confidence, it won't happen instantly but rather an evolution to a new altcoin which illuminates that Bitcoin is inferior. (I believe I am predicting an imminent future, you will soon call me a prophet)
The biggest hedge is Litecoin!!!
there's no hedge
You are of course right, ebay marketplaces and Paypal are both part of ebay Inc.
However, if you look at the profit each of the parts of ebay Inc, then PayPal is the biggest revenue driver. :-)
In the single important part we agree though: Not an option. :-)
However, if you look at the profit each of the parts of ebay Inc, then PayPal is the biggest revenue driver. :-)
In the single important part we agree though: Not an option. :-)
"PayPal" as a hedge is probably a bad idea. You assume that Bitcoin is their biggest competition, which it simply is not. Opening of Amazon payments is, and that is something that has nothing to do with BTC.
I myself would hedge in a mix of FIATs. Than again I see BTC as a game, not as a political tool to change the global lifestyle. :-)
I myself would hedge in a mix of FIATs. Than again I see BTC as a game, not as a political tool to change the global lifestyle. :-)
PayPal is also a wholly owned subsidiary of eBay, so more importantly than being a bad idea, it's not possible.
If you're gonna go down that road, you'd be better off buying out-of-the-money LEAPS on Western Union (WU).
But as you point out, the market does not yet consider Bitcoin a threat.
"PayPal" as a hedge is probably a bad idea. You assume that Bitcoin is their biggest competition, which it simply is not. Opening of Amazon payments is, and that is something that has nothing to do with BTC.
I myself would hedge in a mix of FIATs. Than again I see BTC as a game, not as a political tool to change the global lifestyle. :-)
I myself would hedge in a mix of FIATs. Than again I see BTC as a game, not as a political tool to change the global lifestyle. :-)
Don't we have Bitcoin put options yet?
It seems there is misunderstanding of the term hedge
Gold, silver, food, fiat and clothes are not "offsetting positions" to Bitcoin.
Diversifying your investments is always a good idea.
But diversifying and hedging are not the same.
Hedging BTC would be to invest into something that would go up when BTC goes down.
Hypothetical example would like this: If Ripple was as popular as Bitcoin and BTC were to collapse,
to hedge BTC you would buy Ripple. Because when BTC collapses, Ripple would go up.
In the real world, I cannot think of anything that would truly hedge BTC.
Gold, silver, food, fiat and clothes are not "offsetting positions" to Bitcoin.
Diversifying your investments is always a good idea.
But diversifying and hedging are not the same.
Hedging BTC would be to invest into something that would go up when BTC goes down.
Hypothetical example would like this: If Ripple was as popular as Bitcoin and BTC were to collapse,
to hedge BTC you would buy Ripple. Because when BTC collapses, Ripple would go up.
In the real world, I cannot think of anything that would truly hedge BTC.
why would gold and silver not be a hedge to bitcoin? assuming that many people put money into BTC due to the debasement of paper notes, the people who would be interested in BTC would go to gold/silver/oil instead.
Perhaps equipments. May it be business machines or any other useful equipments to earn cash. That's the best thing to procure. As the saying goes that give a man a fish and he shall eat for a day, teach a man how to fish and you feed him for a lifetime.
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