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.
Topic: Hedge against BitCoin collapse - page 7. (Read 11691 times)
Best hedge is food etc. Next some cash as well as gold and silver. Spread your investment around. One goes bust, you have the others.
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.
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.
Hopefully PPC would be a good hedge, unfortunately Ripple too.
silver
USD and silver doesn't feel like a hedge to me. I thought someone would say Money-transfer companies, Visa, and PayPal. Their shares are going to be undervalued because of the threat of bitcoin. However,if bitcoin go tits up then those companies shares will go up because the direct competition is no longer there.
If Bitcoin crashes because Bitcoin 2.0 comes along Visa won't look good.
A basket of real commodities such as good/silver/platinum
why wouldn't gold and silver be a hedge? i would assume that many people who hold bitcoins want something that has store of value, something that cannot be created out of thin air... so they'd choose gold/silver.
I agree. If anything happens to Bitcoin and it 'collapses' - it doesn't mean that other types of online payment will be successful.
a basket of alt.coinz
or BBB (booze, blow, and bitches -the unholy triad of moneyness: if you can convert anything in them, it's money)
or BBB (booze, blow, and bitches -the unholy triad of moneyness: if you can convert anything in them, it's money)
silver
USD and silver doesn't feel like a hedge to me. I thought someone would say Money-transfer companies, Visa, and PayPal. Their shares are going to be undervalued because of the threat of bitcoin. However,if bitcoin go tits up then those companies shares will go up because the direct competition is no longer there.
why wouldn't gold and silver be a hedge? i would assume that many people who hold bitcoins want something that has store of value, something that cannot be created out of thin air... so they'd choose gold/silver.
as of right now, i don't think bitcoin is an eminent threat to paypal.
silver
USD and silver doesn't feel like a hedge to me. I thought someone would say Money-transfer companies, Visa, and PayPal. Their shares are going to be undervalued because of the threat of bitcoin. However,if bitcoin go tits up then those companies shares will go up because the direct competition is no longer there.
USD
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.
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