Is Bitcoin Becoming the New Market Hedge?

[FedorIzmailov]

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

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[dothebeats]

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.

[samiraetn]

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.

[wtbhitlv]

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.

[Kprawn]

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. 

[Crypto_trader87]

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.

[harrypot]

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.

[Indamuck]

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.

[Jerrycryptofield]

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.

[BitcoinNewbie15]

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...

[bct9t]

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.

[elncrow]

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.

[petloer]

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.

[acheampong64]

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.

[leoliln45]

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.

[bond07]

"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."

[tomward]

"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?"

[markluis]

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.

[angelfaria]

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.

[BitCoinDream247]

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.