Hedge against BitCoin collapse

[toomsie]

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.   

[1714992496]

1714992496

[ssinc]

USD

[toomsie]

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.

[beetcoin]

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.

[conspirosphere.tk]

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)

[chmod755]

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.

[maurya78]

A basket of real commodities such as good/silver/platinum

[coinft]

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.

[NUFCrichard]

Hopefully PPC would be a good hedge, unfortunately Ripple too.

[LiteCoinGuy]

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.

[toomsie]

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.

[Johnny Bitcoinseed]

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.

[subcoin]

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.

[balanghai]

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.

[beetcoin]

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.

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.

[Vycid]

Don't we have Bitcoin put options yet?

[werauchimmer]

"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. :-)

[Vycid]

"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. :-)

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.

[werauchimmer]

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. :-)

[p2pbucks]

there's no hedge