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How are you guys mitigating the volitility. Arbitrage? Seems to me with +- 10 USD in one day, if an order comes in during a top when the quote from newegg is
by drhodes 15y ago
How are you guys mitigating the volitility. Arbitrage? Seems to me with +- 10 USD in one day, if an order comes in during a top when the quote from newegg is for $20K and suddenly the exchange tanks you'll be stuck with a heavy loss. Of course, it works the other way too...
- bitspend 15y agoVolatility is not a real big issue because we can quickly move bitcoin into USD. If a customer sends bitcoin and wants to cancel before the order is placed, then there is no problem. We will just refund them. Customer always comes first.
- Steko 15y ago"Volatility is not a real big issue because we can quickly move bitcoin into USD." This is true today I guess. When everyone is trying to sell bitcoins it might not be so easy.
- quanticle 15y agoI wouldn't be so sure about that. The Bitcoin market is even less liquid than emerging market currencies. If there's a rush for the exit, there might not be enough buyers to allow a quick bitcoin->hard currency conversion.
- owenmarshall 15y ago>Volatility is not a real big issue because we can quickly move bitcoin into USD. ... thanks to speculation. If the market adjusts and people start heading for the exits, bitcoin will become highly illiquid.
- jrockway 15y agoGood point. Where can I buy Bitcoin FX options? If I am a business with Bitcoin exposure, I want to be able to hedge that. What do the markets think about this idea?
- nico 15y agohttps://bitoption.org/ https://bitoption.org/