Re: Has anyone noticed a correlation between BTC price and Bitfunder stocks?
Use as collateral for going long on Bitfinex for example... still sounds a bit weird to free up coins during a drop though.
What would you do on Bitfinex? Aren't you already long by holding a security valued in BTC ?
I think you are assuming ASICMiner has a FIAT value. i can see your argument with other securities that would experience a price change but few do. ASICMiner pretty much stays the same with price changes (look at the bubble/pop). However securities with FIAT business should move with the market and yes you could exploit that
Well, one could argue that during a btc flash crash, it's a panic selloff, which means people are psychologically spooked, and looking to move their holdings into fiat at any cost. It seems logical that people might be transferring btc stocks into btc (by selling cheaply) for transfer to exchanges to convert to fiat.
The reality is by the time everything is said and done, it will likely be too late, and you will likely be converting to fiat at the low, so it's generally smarter to sit tight, and/or buy the shares of those panicking.
-helixone