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I'm afraid it makes sense if they are hedging bets against a major global economy...

by Lorin 6y ago

CerealFounder 6y ago
God this point doesnt make sense. Bitcoin exists in lands that are governed by men. The governments could make it valueless at the first sign of threat to political currency. BTC is not a hedge, it's just an asset class that is growing fast and gaining attention faster than adoption.
ac29 6y ago
Hedging against what? There are plenty of ways to hedge against inflation risk or currency risk without buying into an asset that can lose 50% or more of its value very quickly (and has, a number of times).
- VoiceOfWisdom 6y ago
  How would you suggest hedging against the death of fiat currency without buying a non fiat currency?
  - JumpCrisscross 6y ago
    > How would you suggest hedging against the death of fiat currency without buying a non fiat currency? We’re aware there are non-U.S. dollar currencies out there? And non-currency assets one can buy?
  - phs318u 6y ago
    Maybe it's just me, but if we truly see the (global) death of fiat currency, the inability of Elon Musk to sell a Tesla is gonna be among the very least of anyone's problems.
    - solveit 6y ago
      In general yes, but I think Musk's inability to sell Teslas is going to be a major problem for the particular person deciding whether Tesla buys BTC or not.
  - deleted 6y ago
    [deleted]
  - imtringued 6y ago
    Nigera is suffering from high inflation and their problem is that they aren't mechanizing their agriculture sector. The end result is that they import a lot of food and fail to export their cash crops. If the government borrowed/printed money and used it to grow the agriculture sector they could actually stave off inflation despite increasing the money supply.
    - rafiki6 6y ago
      As per usual, the major issue with fiat currency is how poorly the government is managing the country.
- deleted 6y ago
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- deleted 6y ago
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prepend 6y ago
If they were properly hedged then there would be no profit from Bitcoin going up. Global companies should be hedged so that currencies going up or down do not affect performance. Unless you’re betting on a particular currency.
boublepop 6y ago
Bitcoin is not a viable hedge against a global economic downturn. Just because people push these narratives doesn’t make them true. There is absolutely no evidence that Bitcoin would not crash just as fast or faster than the economy. There are other viable assets that have well studied and well documented track histories. Crypto currencies are best compared to pink sheets prior to increased regulation, and no one in their right mind would tell you to buy pink sheets to hedge against economic downturn even if their favorite did show a 10000% increase in value.
- namelessone 6y ago
  >There are other viable assets that have well studied and well documented track histories. can you expand on that?

I'm afraid it makes sense if they are hedging bets against a major global economy...

by Lorin 6y ago

I'm afraid it makes sense if they are hedging bets against a major global economy...

God this point doesnt make sense. Bitcoin exists in lands that are governed by men. The governments could make it valueless at the first sign of threat to political currency. BTC is not a hedge, it's just an asset class that is growing fast and gaining attention faster than adoption.

ac29 6y ago

Hedging against what? There are plenty of ways to hedge against inflation risk or currency risk without buying into an asset that can lose 50% or more of its value very quickly (and has, a number of times).

VoiceOfWisdom 6y ago
How would you suggest hedging against the death of fiat currency without buying a non fiat currency?
- JumpCrisscross 6y ago
  > How would you suggest hedging against the death of fiat currency without buying a non fiat currency? We’re aware there are non-U.S. dollar currencies out there? And non-currency assets one can buy?
- phs318u 6y ago
  Maybe it's just me, but if we truly see the (global) death of fiat currency, the inability of Elon Musk to sell a Tesla is gonna be among the very least of anyone's problems.
  - solveit 6y ago
    In general yes, but I think Musk's inability to sell Teslas is going to be a major problem for the particular person deciding whether Tesla buys BTC or not.
- deleted 6y ago
  [deleted]
- imtringued 6y ago
  Nigera is suffering from high inflation and their problem is that they aren't mechanizing their agriculture sector. The end result is that they import a lot of food and fail to export their cash crops. If the government borrowed/printed money and used it to grow the agriculture sector they could actually stave off inflation despite increasing the money supply.
  - rafiki6 6y ago
    As per usual, the major issue with fiat currency is how poorly the government is managing the country.
deleted 6y ago
[deleted]
deleted 6y ago
[deleted]

prepend 6y ago

If they were properly hedged then there would be no profit from Bitcoin going up. Global companies should be hedged so that currencies going up or down do not affect performance. Unless you’re betting on a particular currency.

boublepop 6y ago

Bitcoin is not a viable hedge against a global economic downturn. Just because people push these narratives doesn’t make them true. There is absolutely no evidence that Bitcoin would not crash just as fast or faster than the economy. There are other viable assets that have well studied and well documented track histories. Crypto currencies are best compared to pink sheets prior to increased regulation, and no one in their right mind would tell you to buy pink sheets to hedge against economic downturn even if their favorite did show a 10000% increase in value.

namelessone 6y ago
>There are other viable assets that have well studied and well documented track histories. can you expand on that?