Is Bitcoin Becoming the New Market Hedge? - page 2.

BitcoinNewbie15

sr. member

Activity: 574

Merit: 296

Bitcoin isn't a bubble. It's the pin!

Quote from: Jerrycryptofield on August 02, 2018, 10:05:48 AM

An asset needs to be stable before declaring as an hedging asset. As example we can take gold. Bitcoin is a promising asset but it doesn't have the stability to be a hedging asset.

While its true that Bitcoin doesn't have the same price stability as gold, it still is a great asset to hold as a hedge against the market. Bitcoin has shown to be counter correlated with most of the traditional assets. As long as it stays this way, Bitcoin is great as a hedge. Price stability will come with time, it is important to note that Bitcoin was a lot more volatile years ago. It already is becoming more and more stable each day. It's called gold 2.0 for a reason...

Jerrycryptofield

newbie

Activity: 336

Merit: 0

An asset needs to be stable before declaring as an hedging asset. As example we can take gold. Bitcoin is a promising asset but it doesn't have the stability to be a hedging asset.

Indamuck

hero member

Activity: 1120

Merit: 554

What makes bitcoin a great investment to a lot of off shore investors is that it can easily be transferred quickly without a middleman. Banks are able to freeze your assets but with bitcoin you are the sole owner and no one can freeze or seize your btc.

This past year people kept saying institutional money was coming but I think it will take a few years for mainstream investors to enter the crypto world. It's a great hedge against real estate and fiat money which can implode at anytime.

harrypot

newbie

Activity: 294

Merit: 0

I think to be a market hedge what bitcoin must do first is to become more stabilized. We all know this crypto world is volatile and so is bitcoin. So this is the reason that holds it back becoming full out bedge.

Crypto_trader87

full member

Activity: 322

Merit: 100

We can choose whatever we want to our bitcoin and there is no one can dictate what do you want to do with your bitcoin so we can decide if you want to hold it like and asset or use it as an regular corrency like fiat money and the choice is all yours.

Kprawn

legendary

Activity: 1904

Merit: 1074

The price of Bitcoin has to increase soon, if it wants to be a hedge against anything or even to function as a currency. The

problem is nobody wants to spend any coins, because they are hoping for a major increase in the price and they cannot use it

as a hedge, because it is constantly losing value. The people who bought at $19,000 last year are losing money and it is not a

store of value for them. Roll Eyes

wtbhitlv

newbie

Activity: 178

Merit: 0

Yes, the price of bitcoin may be higher and higher in the future. BTC may become a new asset for hedging. If large capital needs diversification investment allocation, bitcoin may be one of them.

samiraetn

newbie

Activity: 224

Merit: 0

I think Bitcoin has a very bright future. Maybe bitcoin won't have the price fluctuation in future. Then it will be called as a hedging asset. Hope this time will come very soon.

dothebeats

legendary

Activity: 3542

Merit: 1352

Perhaps, but the only problem is that it's still a highly-volatile asset that could sweep away all earnings and life savings in a matter of an instant, if a flash crash happens. Even I believe that it could help me in terms of hedging, while I'm still hesitant to do so given the nature of the coin, with more downs than ups in the recent times. As of now, I'd like to keep things exclusive for bitcoin: a speculative vehicle that I'll hold long-term and a handy currency which I can use if ever the need arises.

FedorIzmailov

jr. member

Activity: 238

Merit: 1

we all believe in this and very much hope for it. If everything will be so - each of us will make a minimum of x10 in its assets

zxrcoin

newbie

Activity: 252

Merit: 0

To become the hedge of the market at first bitcoin needs to be stable. Only then there is more possibility for bitcoin to become a good hedging asset.

dannywhite

newbie

Activity: 7

Merit: 0

What are the arguments supporting the view that BTC value will rise again? It's investing... How sure can we actually be?

zinson01

newbie

Activity: 266

Merit: 0

Yeah bitcoin has the characteristics of a good hedging asset. But the only issue is its volatility. If an asset rise or drop several times a day definitely it is not good for a hedge.

Mandetlable

brand new

Activity: 0

Merit: 0

Bitcoin is still in high Inflation. Inflation may be reduced, but at the same time it is very low. Bitcoin is still making hedge dollars. Bitcoin is in a strong position in the cryptocurrency.

herodrx

newbie

Activity: 140

Merit: 0

Bitcoin is definitely a good hedge against dollar but the problem is volatility of bitcoin. As a hedge obviously people want something more stable.

Trancely

newbie

Activity: 2

Merit: 0

Bitcoin inflation is more high than ever. I think it will reduce inflation but it will be very low. Now bitcoin gedge dollars. In my opinion Bitcoin are more secure and its probability more high than ever.

Gualloo

newbie

Activity: 2

Merit: 0

For hedging, BTC can be suitable as it has an ever-rising intention in the price market. Hedging will be more interestingly implemented in BTC if ETH approval is succeeded. On the other hand, hedging may not be possible with BTC as it is a volatile coin as every crypto coin is. Thus, it is not gold.

logan16j

member

Activity: 252

Merit: 10

Quote from: FXTradingPro on July 30, 2018, 10:42:37 AM

With the recent up move in price, there are some analysts that feel that BTC could become the new asset of choice for hedging. BTC holds all of the right characteristics of a hedging asset. If BTC could become the choice of hedgers the valuation potential is staggering.

https://forexmarketslive.com/is-bitcoin-becoming-the-new-market-hedge/

I think that bitcoin can not become a barrier, you can see that the market is constantly fluctuating and very difficult to predict, with very small capitalization, bitcoin can not affect the world economy. Not only that, bitcoin can also be a very good means of transformation for us. Therefore, I believe that bitcoin will promote the development of society.

MarshMagpie

newbie

Activity: 38

Merit: 0

There is long way to go for Bitcoin before it becomes market hedge. Though it already indicates and dictates other Altcoins' growth sometimes, but, in reality to become a market hedge BTC needs to become stable. The current volatile situation and regular fluctuations within few hours are the reasons what is stopping it from becoming market hedge.

Aztek

sr. member

Activity: 423

Merit: 250

Quote from: MegaDots on August 01, 2018, 03:43:57 PM

Bitcoin could have become the market hedge already hadn't it been so volatile in nature. Practically, stable products/services that directs the market are called market hedge. Hopefully, if SEC sanctions Bitcoin ETF, then BTC will reach a stable state and then there will be chance for it to become the market hedge.

These is either a good news for Bitcoin to be consider fro possible Market Hedge, one should note the possible good market potential that could bring as to add the stability and dominance on the market by Bitcoin, it will bring more new potential investors into the market, and will never know what will be the effect on the price value of Bitcoin in the market.

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