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Board Beginners & Help
Re: how can i hedge my bet
by
makksik
on 15/04/2013, 22:53:42 UTC
makksik
you are right about the trust factor, which would be nearly impossible, but why would a business accept bitcoin when they could immediately lose money on their principle? yes they could make money if the coins go up. any idea how a business that accepts btc would manage their risk other than immediately selling them?

At this point, I would think it depends on the kind of business and how many layers of the supply chain above and below BTC is used as a means of exchange in. We've heard murmurs of Amazon and others accepting BTC in the future, but I highly doubt that would happen if they didn't have some sort of mechanism where they could immediately exchange BTC received for goods at some sort of very liquid exchange that will let them lock in prices for the duration of a transaction (i.e. not hedging of days/months but rather minutes/hours).

In all probability however, I don't believe we will see BTC used directly by large retailers as their payment processors (who are centralized, and as such have the organization and resources to lobby) -- will make the argument that potentially illicit, untraceable funds are being recycled into the normal economy from the underworld of money-launderers, drug-related types and maybe even terrorists... The level of exaggeration and rhetoric will purely be a function of the perceived threat of BTC to these processors,.