Bitcoin Forum

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/

Usability wise, bitcoin could make a great hedging asset. It definitely has the characteristics of a good hedging asset. The only issue that it has for now is the volatility. An asset that can rise/drop by 10% or more a day is definitely not good for a hedge; it would be counter intuitive. Hopefully as more of the masses get a hold of bitcoin though, that the volatility will decrease significantly. For now, gold wins the "hedge" category.

It is definitely a good hedge against the dollar. But one problem with that is how volitile bitcoin is. Often people want something more stable as a hedge.

Yeah that's the only thing holding it back from being a full-out hedge. But it's certainly taking away some of the attention from gold. With all this heat about a trade war, you'd think that gold would be soaring. But it's been dragging it's heels down bit by bit. Meanwhile, bitcoin is breaking out of its yearlong downtrend and starting to look like it wants to make its way back up.

I think in becoming a hedge, it's also serving to provide individuals with currency devaluation protection. Most Asian countries are devaluing their currency in response to threats of trade war, and normal people like you and I want to protect ourselves. Naturally, we use bitcoin to do so.

Bitcoin still has a bit of relatively high inflation to burn through... After the next halving occurs however inflation will finally drop to a low percentage.

So I think bitcoin will be a good hedge against the dollar in about 2 years.

Yes, with the development of the encrypted community, BTC may become a new asset for hedging. We see a very rapid expansion of the market value of bitcoin in the last two years, and we have reason to believe that bitcoin will be configured by more professional investors in the next few years.

It needs to stabilize first before it can become a market hedge.

Yes, Bitcoin can be a good asset right now, which has a good value-protected asset. But keep in mind the daily increase and decrease in investment value can fluctuate very quickly is not good for a fence you mean to protect value, investments like gold and other securities still hold the category.

I use Bitcoin as a hedge to go along with my Fiat cash, precious metals and stocks.  Usually when I'm taking a beating in one of them another one of them bails me out.  Its been working for a few years now. 

If a Bitcoin ETF will be approved by the SEC then i could see the possibility that investors, asset managers and fund managers will use it as hedge product.
A Bitcoin ETF will also serve as an interesting new asset category for Fund managers, in current state the risks are to big for those parties but a regulated
Exchange listed asset will set the door wide open to a whole new group of investors. I hope it gets approved, VanEck en SolidX will develop and market the
new Bitcoin ETF as it seems.

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.

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.

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.

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.

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.

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

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.

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

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.

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

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.

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.

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.

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.  ::)

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.

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.

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.

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...

Bitcoin needs to burn through the high inflation and also needs to be stabilized. So I think it could be a hedging asset after a few years maybe one or two.

For recent few years bitcoin has an extended market value. This factor makes it a good asset of being hedge. I think another reason behind this is the development of crypto community.

As we see bitcoin has an extended market value for the recent few years and this factor makes it a great asset of being hedge. Another thing behind this I think is the development of crypto community.

Well, as wee can all testify, I think Bitcoin has stayed for long enough and it's passed most tests successfully whilst it's still living despite the naysays, obstacles and criticisms. I think it can be a very good hedging asset. Bitcoin serve all the required functions to be a hedging asset.

Good query and I also agree with your points too. Bitcoins actually has many traits for becoming hedge asset . It has good usability that is one of the major reasons for being value protected asset.

"Bitcoin cannot be used as Hedge or store of value in a market where Fiat and Crypto come together in such an explosive way. Being deflationary and having a network effect becomes an old tale for newcomers."

"What coins do you think will be the first to overtake bitcoin then? Will it be ripple or etherium bitcoin cash
or something that has yet to really explode?"

I don't know calling it hedge is appropriate or not but this is a true fact that it is definitely falling impact in the regular economic system and bringing a new revolution for the upcoming generations,   :-\ so it is up to the users how they received this new technology.

Bitcoin will take lot more times to be a hedge asset. Still now the price range is volatile, luckily most of the time of uprise. Since the mining is saturating we can hope it to be a hedge very soon.

To be honest, being highly volatile and fluctuation of price on a regular basis is what is stopping Bitcoin from becoming the market hedge. So it definitely needs to become stable before establishing itself as a hedge. Hopefully, we will see something like this in the near future.

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.

Yes. Bitcoin is becoming the new market hedge though it's price fluctuates up and down which makes it unstable. Aside from that, I think bitcoin can help curb inflation.

Bitcoins actually has many traits for becoming hedge asset . It has good usability that is one of the major reasons for being value protected asset. This factor makes it a good asset of being hedge. I think another reason behind this is the development of crypto community.

Yeah and emerging markets are needing it more and more now that their currencies are becoming useless. It's hard for citizens of these countries to live with spiraling inflation, rapid devaluation, and stagnant growth, so they turn to bitcoin, gold, and dollar to protect themselves. Unfortunately, more people value the second two these days because they think bitcoin is "super risky"

Once institutional money finds its way in, we'll see more people dipping their toes in. But it might not be a good thing because they can also monkey-hammer it down with massive shorts whenever they want as well.

I think in the near future bitcoin will be considered as a market hedge once volatility may be lessen further. The point of bitcoin of becoming a market hedge could  mean more investors to invest in btc since the risk of losing money in btc investment could have a much lesser risk.

BTC does possess all the right characteristics of being a hedging asset. Plus this coin does have a good footing in the market and is popular too. The only downside is that it fluctuates. If this comes to a stable position then it will be a flawless one.

Its good when the new market hedge is part of bitcoin with the development of the encrypted community because its possible good market potential that could bring as to add the stability and dominance on the market by Bitcoin. Bitcoin will reach a stable state and then there will be chance for it to become the market hedge.

In the last few years, bitcoin has had an open market value. I think another reason behind this is the development of the cryptographic community. The other thing behind this I think is the development of the cryptographic community.

In the last few years, bitcoin has had an open market value. I think another reason behind this is the development of the cryptographic community. Yes, as we all can testify, I think Bitcoin has stayed long enough and it has passed most of the successful trials while it is still alive despite its many obstacles and critics. Bitcoin serves all functions required to become a hedging asset. Bitcoin really has many characteristics to become a hedge. "Bitcoin can not be used as a barrier or storage value in a market where Fiat and Crypto come together in such a booming way." As deflation and network effects become an old story for these newcomer."

Yes, it is because slowly everyone is gaining knowledge on bitcoins. Volatile nature of bitcoin gets overshadowed by the profit, the investors make.