Hacker News Reader

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.

View on HN

They would have to employ some sort of currency risk hedge. http://en.wikipedia.org/wiki/Foreign_exchange_hedge

Easier said than done when you don't have an actual currency to hedge against and the complete lack of a functioning options market.

Reply on news.ycombinator.com