Re: switching to fiat money vs shorting Btc as a consistent hedging strategy
This is the reason why in the end I preferred transferring my btc from Bitmex to Binance, where I sold 3/4 of them for fiat money (€).
This way, no matter how deep bitcoin drops, a certain amount of value of money will always be safe.
yeah... but it's not real fiat currency. it's still crytocurrency that claims that each token is backed by fiat currency.This way, no matter how deep bitcoin drops, a certain amount of value of money will always be safe.
sad thing is you ll have to accept that risk. the risk of holding crypto backed fiat currency.
In particular, if the price drops to 30K, in order to maintain your initial (or maximum) value of $6200 you need to increase your total btc amount to at least 0,2067 BTC. In fact 0,2067 * $30000 = $6200.
that gives us problems if we use bitcoin for trading. especially i think there is a lot more risk than reward by holding bitcoin right now.it's hard to tell: bitcoin had a year-long run during which the price decupled (!). It can go higher, of course, but it may not. The point in my opinion is providing you with some sort of exit strategy which fits your goals and your beliefs and stick to that.
But this, of course, we all know
