2/ Obviously some users can hedge via futures, but if you're stashing money b/c you live in a current/potential kleptocracy (the Holocaust scenario) the CBOE is not an option.
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Perhaps http://prism.exchange could be used for this. Use ETH contracts to hold a basket of alts in proportion to their market caps. Provides stability without traditional reserve-holder-counterparty risk. Result = a synthetic “stablecoin”?
The big problem with this is that altcoins have high correlation with each other. "Basket of altcoins" is not that stable. Maybe if you have a basket of USDT-style pegged tokens, then at least your counterparty risk is spread out?
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Actually they don't. If you calculate the correlation of daily changes during 2 years, they'll be as low as 0.3 for most coins. If you look for shorter periods, like 30d, you'll see they have periods w/ neg corr. and highly pos corr. Depends on the shock scenario.
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They usually don't. But since it is a very small, free and globalized market, there's a lot of things that affect cryptocurrencies in general.pic.twitter.com/em0yZivfuc
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The problem is that a usdt-style coin lacks the best crypto feature and the most important for us, 3rd world citizens: the monetary policy written in code, so governments cannot create inflation. But this feature is also a bug in this early phase, it creates the volatility.
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