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That means they have a net exposure to the bitcoin price (possibly quite a large one). From their point of view that's not all that desirable.
by omh 14y ago
That means they have a net exposure to the bitcoin price (possibly quite a large one). From their point of view that's not all that desirable.
- toomim 14y agoExcept that, with the price rising, they're making money from that "exposure" on average. And they obviously believe the price will keep going up, because they're a bitcoin business, and believe in bitcoin. If the price stops going up, their company will fail anyway. And finally, perhaps you noticed that coinbase is processing thousands of bitcoin purchases now. So I'd say, with all that data, it's not actually that risky for them. If the price starts going down, they'll know it first, because they'll be the ones making the purchases. :P
- wmf 14y agoThe exchange rate has no effect on Silk Road. People will still want to buy BTC.