A new startup named Hedgy is looking to tackle one of bitcoin’s biggest problems – volatility.
While an entire industry including payment processors, wallets and data-driven tools has been built around bitcoin, the thorny issue of how to reduce its volatility against more familiar fiat currencies still remains.
The team at Hedgy thinks that the ability to use multi-signature addresses to execute derivative contracts might be a way for bitcoin companies to “hedge,” or mitigate, the risk inherent in bitcoin’s fluctuating value.
“Bitcoin is a very new market. Volatility is the number one barrier to entry for a lot of businesses.”
Websites like btcvol.info track the ongoing volatility of bitcoin, but it doesn’t take a market analyst to look at a historic price chart and recognize that the digital currency doesn’t exactly behave like a stable currency.
- ^ Hedgy (hedgy.co)
- ^ btcvol.info (btcvol.info)
- ^ Boost VC’s bitcoin hackathon (www.coindesk.com)
- ^ Boost VC (www.coindesk.com)
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- ^ on its website (hedgy.co)
- ^ Market volatility image (www.shutterstock.com)
- ^ Hedgy (www.coindesk.com)
- ^ Multi-signature (www.coindesk.com)
- ^ Volatility (www.coindesk.com)