4 ms·
That's not quite true, the underlying volatility doesn't matter as long as the position sizes (as part of a basket of currencies) are correct and the relationsh
by cjlars 9y ago
That's not quite true, the underlying volatility doesn't matter as long as the position sizes (as part of a basket of currencies) are correct and the relationships between the currencies are well understood.
- nnfy 9y agoI dont know why you're being down voted. You can diversify into high and low risk assets. Btc is a valid but high risk asset, with a future that one could at least rationally make a case for.
- nwah1 9y agoHedging is about reducing risk. You can definitely argue that people shouldn't keep all their wealth stashed as dollar bills under their mattress, and that they should diversify. Indeed, absolutely nobody advocates doing that. Everyone says to diversify, except for goldbugs and bitcoin extremists. The question of whether it would be a good idea diversifying in that direction is still unanswered, as there's plenty of real productive assets to invest in that contribute tangible goods and services to the world. When people are in a frenzy bidding up the prices of things that aren't providing goods and services to anyone, then you should worry.