Quote from: deisik on January 28, 2019, 07:02:42 AM

Quote from: tenakha on January 27, 2019, 10:06:30 PM

Quote from: deisik on January 27, 2019, 05:57:14 PM

Quote from: Slow death on January 27, 2019, 05:39:14 PM

Quote from: deisik on January 27, 2019, 04:37:42 PM

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bitcoin is very volatile, such high volatility becomes a major barrier for merchants to accept bitcoin as a means of payments

I don't particularly disagree with your points

However, if you are a big merchant with thousands of clients paying or willing to pay with Bitcoin, you can either mass-hedge directly against price volatility (this will cost you around 1% yearly at max) or use third party services that specifically deal with this issue. Besides, we should keep in mind that with expansion of Bitcoin adoption volatility is set to taper off eventually as real value, which comes through such use, takes away from volatility just like speculative value adds to it

I do not think any technique can easily stand against price volatility. If it was easy, none of us would lose

It is in fact quite easy

Most of us are not doing this because a) we simply don't know how b) hedging against volatility means we are sacrificing future profits via "buying low selling high". But for merchants and producers (who are not interested in speculation), it is a working strategy which is widely used everywhere in the world (I'm not talking about crypto specifically here). If you want to hedge against future price change, you can hedge with futures or options. With crypto, you just open a short position equal to the amount held. In that case, you are 100% protected from any price move, though, as I said, you can also kiss goodbye to your profits as well

In others it is possible, because the price is not so volatile. In my opinion everything is not what you said, for instance if you have a big percent of market you can go against price volatility that moves 100 pip up and 100 pips down in 1 hour. And here, not naturalness, your laws are valid and this is not welcome by any investor and you will lose anyway.