Post
Topic
Board Speculation
Re: Underlying BTC problem
by
avikz
on 10/12/2018, 06:08:12 UTC

how about this fix.  a wallet that has a built in hedge. it automatically goes short against your balance so you are flat neither long nor short. your dollar equivalent stays the same.

I somehow agree to what Gentlemand said about the fix you have proposed. It may lead to an utter disaster if the process is made automated. It will lead to a bigger liquidity issue that the service provider might face and become insolvent after a certain period of time. It may lead to much higher volatility of the asset pricing if the automation is adopted by the mass, which is already a big issue that we commoners face every single day.

The volatility of bitcoin or any other crypto asset can be reduced by proper adoption and circulation. If a currency is not well circulated within the economy, the fate of that currency is to die. In order to survive in the long run, bitcoin and other crypto assets need to be well circulated within the economy through merchant adoption.