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0 sats \ 4 replies \ @siggy47 OP 19 Aug \ parent \ on: Volatility Insurance For Businesses That Accept Bitcoin? bitcoin
Leverage would be a tool, but it's probably not something a small businessman would want to do when he can dish off the risk. At least that's my experience. Re stablesats, Galoy's idea has created a culture where a big percentage of those using the wallet really don't want bitcoin, they want dollars. Stablesats perpetuates that, and I don't think it promotes adoption.
I thought it was just traders on the back end. Some are going long and some going short which is how you get the dollar denominated amount of sats.
Maybe traders don't have the success of bitcoin at heart. One might argue that anyone trying to avoid the volatility of bitcoin would be in the same boat.
For a business it might make more sense to start with building their bitcoin reserve first. Then when they've been through a cycle or two the volatility won't be as much of a concern.
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For a business it might make more sense to start with building their bitcoin reserve first. Then when they've been through a cycle or two the volatility won't be as much of a concern.
Definitely. I'm not saying the idea is viable now, but insuring against the volatility would theoretically allow more bitcoin to be accumulated, since the need to switch into fiat would be alleviated. It reminds me of the old stock market cliche. It's not about timing the market. It's time IN the market.