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>shorting where? Bitfinex lets you short (although you'd obviously still get hosed if there was an enormous sell off). >you do know most of the market is BTC

>shorting where? Bitfinex lets you short (although you'd obviously still get hosed if there was an enormous sell off). >you do know most of the market is BTC driven That's my point. It seems as the crypto market is expanding some tokens are losing their tether/bond to BTC (and one presumes the trend will continue if the overall market gets big enough and has enough time to mature). I think next year will decide whether or not crypto is an asset class that's here to stay (perhaps with more modest growth in the years following) or if we were really all suffering collective tulip mania and the entire ecosystem dies a spectacular death. For the moment I personally wouldn't put huge amounts in to crypto but if I had cash I could afford to lose, I'd certainly dip my toe in. Edit: also want to say, if crypto currencies are here to stay, I hope at least a little light regulation comes in to force as there are way too many ways for new/naive participants to have their shirts taken from their backs. Watching some of the shenanigans going on has given me a stronger appreciation for the role regulation plays in fostering a healthy market.

thisisit 9y ago
> Bitfinex lets you short. The exchange with those Tethers? I am not sure hedging on an exchange with this kind of counterparty exposure is a good idea. > It seems as the crypto market is expanding some tokens are losing their tether/bond to BTC How do you figure? It will be interesting to see which tokens/coins are those because I am sure all of them have positive correlation with BTC.
- corford 9y ago
  >The exchange with those Tethers? I am not sure hedging on an exchange with this kind of counterparty exposure is a good idea. Agree. I don't use Bitfinex and I don't short. But many people do and for certain risks/fluctuations it provides them some hedge. >It will be interesting to see which tokens/coins are those because I am sure all of them have positive correlation with BTC. Watching the recent lead-up to the 2X fork (and subsequent last minute cancellation) was quite instructive. There was a lot of correlation between BTC and most Alts (initially everyone selling alts so they could boost their BTC holdings prior to the fork date and then everyone selling BTC to get back in to Alts as soon as the fork cancelled). XRP on the other hand stayed relatively stable throughout the worst of it. It's still early days but if the overall crypto market becomes big enough, has sufficiently diverse investors (with differing long-term/short-term goals) and some form of regulation appears to remove the worst excesses of scammers/manipulators, I think a handful of coins/tokens will float and exist independently of BTC's fortunes.
  - corford 9y ago
    And there's a nice real world test of this happening right now :) BTC is experiencing a flash crash. I've taken a screen shot that shows the effect on Alts (https://imgur.com/a/4vNOP https://imgur.com/a/4vNOP). Almost everything is down but at the moment DASH is still in the green and EOS has only lost 2% (compared to others losing 12% or more). Will be interesting to see if DASH stays green or starts to hit the red like everything else.

thisisit 9y ago

> Bitfinex lets you short. The exchange with those Tethers? I am not sure hedging on an exchange with this kind of counterparty exposure is a good idea. > It seems as the crypto market is expanding some tokens are losing their tether/bond to BTC How do you figure? It will be interesting to see which tokens/coins are those because I am sure all of them have positive correlation with BTC.

corford 9y ago
>The exchange with those Tethers? I am not sure hedging on an exchange with this kind of counterparty exposure is a good idea. Agree. I don't use Bitfinex and I don't short. But many people do and for certain risks/fluctuations it provides them some hedge. >It will be interesting to see which tokens/coins are those because I am sure all of them have positive correlation with BTC. Watching the recent lead-up to the 2X fork (and subsequent last minute cancellation) was quite instructive. There was a lot of correlation between BTC and most Alts (initially everyone selling alts so they could boost their BTC holdings prior to the fork date and then everyone selling BTC to get back in to Alts as soon as the fork cancelled). XRP on the other hand stayed relatively stable throughout the worst of it. It's still early days but if the overall crypto market becomes big enough, has sufficiently diverse investors (with differing long-term/short-term goals) and some form of regulation appears to remove the worst excesses of scammers/manipulators, I think a handful of coins/tokens will float and exist independently of BTC's fortunes.
- corford 9y ago
  And there's a nice real world test of this happening right now :) BTC is experiencing a flash crash. I've taken a screen shot that shows the effect on Alts (https://imgur.com/a/4vNOP https://imgur.com/a/4vNOP). Almost everything is down but at the moment DASH is still in the green and EOS has only lost 2% (compared to others losing 12% or more). Will be interesting to see if DASH stays green or starts to hit the red like everything else.