News for hackers. Stuff that matters.

A comment on Bitcoin value dives after China banks ban. Parent comment

Re:Bitcoin value dives after China banks ban by sentenza on Thursday December 05, 2013 @03:35PM (#6857035)
Ah, that explains it. It would be interesting to know what mechanisms Coinbase et al use to avoid balance sheet fallout by sudden downward fluctuations.
[ Parent | on HN ]
Re:Bitcoin value dives after China banks ban by YourCupOTea on Thursday December 05, 2013 @04:12PM (#6857279)
They would have to employ some sort of currency risk hedge. http://en.wikipedia.org/wiki/Foreign_exchange_hedge
[ Parent | on HN ]
Re:Bitcoin value dives after China banks ban by jonknee on Thursday December 05, 2013 @05:37PM (#6857895)
Easier said than done when you don't have an actual currency to hedge against and the complete lack of a functioning options market.
[ Parent | on HN ]