Bitcoin price insurance

[krishatnet]

It is better to insurance bitcoin price as the price is very volatile. People hedge futures in stock market with options.

[1715349463]

1715349463

[oblivi]

Dude you are supossed to deal with the responsability of lossing the money if you are freely putting it into Bitcoin the first place.

[odolvlobo]

Dude you are supossed to deal with the responsability of lossing the money if you are freely putting it into Bitcoin the first place.

Dealing with the "responsibility of losing the money" includes hedging, such as buying insurance, options, or futures.

[Barabbas0]

Dude you are supossed to deal with the responsability of lossing the money if you are freely putting it into Bitcoin the first place.

Dealing with the "responsibility of loosing the money" includes hedging, such as buying insurance, options, or futures.

lol, Oblivi has no idea how credit works in relation to financial markets. Hedging actually benefits instruments as it allow investors confidence to invest more funds. I can guarantee you I'll invest more into a married put than I will a naked position.

[finnile]

Most of you posses some Bitcoins. If the price goes down, you lose money. Do you need some kind of insurance that will compensate you if the price goes down?

I know of a site coming soon, which will let you lock down your bitcoin at the current price.

And you can convert it back any time at the dollar value.

[odolvlobo]

Most of you posses some Bitcoins. If the price goes down, you lose money. Do you need some kind of insurance that will compensate you if the price goes down?

I know of a site coming soon, which will let you lock down your bitcoin at the current price.
And you can convert it back any time at the dollar value.

Perhaps you are referring to these:

Coinapult Locks - https://coinapult.com/locks/info
Bitreserve - https://bitreserve.org/

[Window2Wall]

Most of you posses some Bitcoins. If the price goes down, you lose money. Do you need some kind of insurance that will compensate you if the price goes down?

I know of a site coming soon, which will let you lock down your bitcoin at the current price.
And you can convert it back any time at the dollar value.

Perhaps you are referring to these:

Coinapult Locks - https://coinapult.com/locks/info
Bitreserve - https://bitreserve.org/

With both of these websites/companies (as with any other insurance company) you will have counter-party risk, that is risk that the company that you buy your insurance from will not payout their insurance products.

When taking into consideration the number of scams out there that are bitcoin related I would say that buying this kind of insurance product would be NPV negative, even if you assume the price of bitcoin is going to fall