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Your post doesn’t make any sense. How on earth would you hedge a Bitcoin position with tether? This is like saying you’re going to hedge your SPY position with

Your post doesn’t make any sense. How on earth would you hedge a Bitcoin position with tether? This is like saying you’re going to hedge your SPY position with dollars. Also, a CDO is a variety of debt packaged into a single instrument that pays out cash flows to tranches, some of which are paid before others.

smackeyacky 5y ago
Tether has been suspected of being used to manipulate the price of bitcoin, so its fair to assume you could make a financial instrument that mirrored that activity and use it as a hedge. I don't know if its possible to short bitcoin via a reputable dealer, but its possible to construct a CDO out of anything that can be borrowed. Edit: holy mother of meltdowns you can short bitcoin.
- quickthrowman 5y ago
  Do you understand what hedging is or how to hedge a position? Please explain to me how you would hedge a 50 BTC position with tether... I’ll save you some trouble and point out that it’s impossible. You can hedge bitcoins with Bitcoin options or perpetual swaps/futures, it’s impossible to hedge Bitcoin with tether, full stop.
  - smackeyacky 5y ago
    You can hedge anything with anything where you perceive a relationship. It doesn't have to be formally linked or related in any way.
    - quickthrowman 5y ago
      Please explain how you hedge BTC against tether, which is supposed to maintain a $1 peg. There is no correlation between BTC and tether, how can you not see that?? Bitcoin goes up and down, tether stays at a buck, plus or minus a tiny fraction at times. You cannot hedge Bitcoin with tether!! At this point, I’m going to assume you have a fundamental misunderstanding somewhere, I won’t be responding any more. If you want to believe you can hedge a volatile crypto coin with a pegged stable coin, I could care less, just don’t spread that nonsense here.

smackeyacky 5y ago

Tether has been suspected of being used to manipulate the price of bitcoin, so its fair to assume you could make a financial instrument that mirrored that activity and use it as a hedge. I don't know if its possible to short bitcoin via a reputable dealer, but its possible to construct a CDO out of anything that can be borrowed. Edit: holy mother of meltdowns you can short bitcoin.

quickthrowman 5y ago
Do you understand what hedging is or how to hedge a position? Please explain to me how you would hedge a 50 BTC position with tether... I’ll save you some trouble and point out that it’s impossible. You can hedge bitcoins with Bitcoin options or perpetual swaps/futures, it’s impossible to hedge Bitcoin with tether, full stop.
- smackeyacky 5y ago
  You can hedge anything with anything where you perceive a relationship. It doesn't have to be formally linked or related in any way.
  - quickthrowman 5y ago
    Please explain how you hedge BTC against tether, which is supposed to maintain a $1 peg. There is no correlation between BTC and tether, how can you not see that?? Bitcoin goes up and down, tether stays at a buck, plus or minus a tiny fraction at times. You cannot hedge Bitcoin with tether!! At this point, I’m going to assume you have a fundamental misunderstanding somewhere, I won’t be responding any more. If you want to believe you can hedge a volatile crypto coin with a pegged stable coin, I could care less, just don’t spread that nonsense here.