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MelodyRowell
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November 12, 2013, 03:33:52 PM |
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The biggest hedge is Litecoin!!!
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AnonyMint
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November 12, 2013, 07:04:48 PM |
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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) |
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calian
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November 12, 2013, 08:58:34 PM |
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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.
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subcoin
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November 13, 2013, 07:32:35 PM |
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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. |
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mindragon
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November 13, 2013, 09:10:05 PM |
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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.
Bitshares aims to do that. Protoshares are almost all mined out. http://invictus-innovations.com/ |
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Sage
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November 13, 2013, 09:13:09 PM |
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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.
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LiteCoinGuy
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In Satoshi I Trust
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November 13, 2013, 10:29:58 PM |
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Don't we have Bitcoin put options yet?
heard the same....but what was the name again   |
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lnternet
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November 13, 2013, 11:15:46 PM |
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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  ) |
1ntemetqbXokPSSkuHH4iuAJRTQMP6uJ9
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AnonyMint
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November 14, 2013, 12:16:33 AM |
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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.
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duke1839
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November 14, 2013, 08:52:40 AM |
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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.
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Omikifuse
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November 14, 2013, 02:08:56 PM |
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There is so many hedge against BitCoin, "anything else other then Bitcoin"
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lucaspm98
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November 14, 2013, 03:00:52 PM |
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Some precious metals and USD will help, but there is no perfect hedge at this time IMO.
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Corenin
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November 14, 2013, 03:41:14 PM |
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USD, gold and Litecoin are good hedge against BTC |
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indianplayers
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November 14, 2013, 03:45:40 PM |
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Gold, silver is good hedge
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deisik
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November 14, 2013, 03:49:52 PM |
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A basket of real commodities such as good/silver/platinum
If you aren't talking about "paper" precious metals, those are not very convenient as a store of personal wealth  If you are, then in the case of some apocalypse you will get nothing...  |
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deisik
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November 14, 2013, 03:56:16 PM |
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There is so many hedge against BitCoin, "anything else other then Bitcoin"
This equals to saying that there is nothing that could be used as a hedge against Bitcoin. Hedge by definition means strong negative long-term correlation, there's none such presently. Bitcoin is not just a new kid on the block but it is entirely new creature ("new paradigm", as it were) |
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toomsie (OP)
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November 14, 2013, 04:00:08 PM |
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there's no hedge
Most likely you are correct. A perfect hedge is where a losing scenerio is unlikely because the death of one market would mean the growth of another.. I looked at a few possible suggestions and I might combine a few to cover myself the best way I can. |
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AceCoin
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November 14, 2013, 04:05:12 PM |
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drugs
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Bullion333
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November 14, 2013, 04:13:22 PM |
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What about a BTC options trade or sorts, there must be some sort of financial product whereby you can hedge i.e go short and cover your long BTC exposure?? Like a BTC put option? --------------------- Update; after a quick search on google I came across this: http://btclevels.com/ might be of interest or is there an alternative? |
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mindragon
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November 14, 2013, 05:02:30 PM |
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What about a BTC options trade or sorts, there must be some sort of financial product whereby you can hedge i.e go short and cover your long BTC exposure?? Like a BTC put option? --------------------- Update; after a quick search on google I came across this: http://btclevels.com/ might be of interest or is there an alternative? As soon as it is available, bitshares aims to do just that. Protoshares are being mined now for that. http://bitsharestalk.org/index.php?topic=13.0 |
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