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Ugh, Bitcoins aren't stock, but I suppose for those caught up in its (so-called) "volatility" and whatever "derivatives" are supposed to be, this could be helpf
by eglover 12y ago
Ugh, Bitcoins aren't stock, but I suppose for those caught up in its (so-called) "volatility" and whatever "derivatives" are supposed to be, this could be helpful. Sorry, not for me.
- jboggan 12y agoThe SEC agrees that they are not stock or securities! [1] Bitcoin payment processing (or ATMs, or foreign remittances) is going to be a big business but many of the current operators are charging only 1-3% as a transaction fee. It's not uncommon for there to be drops of that magnitude during the time it takes the payment to process and the transaction to verify in the blockchain, let alone be sold off as fiat to balance the payment processor's books. This is one way of hedging against that. It's also effectively a way to short Bitcoin in the short term (not to 0) since it gives you a way to profit from a downswing. [1] - http://www.sec.gov/oiea/investor-alerts-bulletins/investoralertsia_bitcoin.html#.U8cRYY1dWkQ http://www.sec.gov/oiea/investor-alerts-bulletins/investoral...
- dllthomas 12y agoFutures are more important in commodities and currencies than they are in stocks.