<p>If the respective Nation or company had immensely deep pockets, they could guarantee the Bitcoin price for some time by erecting immense buy / sell walls on all major exchanges. This is suggested for completeness only, as I suspect that this would be an insanely expensive endeavor.</p>

<p>The correct answer is likely that they should hedge their exposition with futures as is common practice in situations where a company has liabilities in a foreign currency.</p>

CC BY-SA 3.0
2017-05-13T17:47:37.573Z
2017-05-13T17:47:37.573Z
Murch
<blockquote>
  <p>If not, can a company adopt measures to protect itself from a drastic slump of the Bitcoin price ? If so, what are those?</p>
</blockquote>

<p>Actually, several bitcoin brokers offer some future and margin trading so you can at least hedge your risk by trading Bitcoin futures.</p>

CC BY-SA 3.0
2017-05-12T15:52:44.807Z
2017-05-24T18:02:02.033Z
2017-05-24T18:02:02.033Z
vdorut
<p>I have absolutely no authority in the field and I am just expressing my opinion, so please don't quote me on the following.</p>

<p>Bitcoin is a decentralised currency, that is to say no single entity can govern its value and the assets are not stored on a server in someone basement. Authorities can try to affect Bitcoin by making it illegal or passing new laws thus making the price fluctuate greatly. As a simple example, yesterday 2 of the big Chinese exchangers introduced new AML measures and have disabled withdrawals for up to a month, directly impacting the price as Bitcoin holders dumped a lot of their assets. Some more legislation by the Chinese governement have been affecting prices for months, you should follow the news on www.coindesk.com to stay up to date.</p>

<p>So I believe that the answer to your question is that it is not possible to curb the prices.</p>

CC BY-SA 3.0
2017-02-10T10:08:59.147Z
2017-02-10T10:08:59.147Z
Alex
<p>Bitcoins volatility will naturally decrease with time as can be extrapolated from this graph <a href="https://www.buybitcoinworldwide.com/volatility-index/" rel="nofollow noreferrer">https://www.buybitcoinworldwide.com/volatility-index/</a>. This makes sense as Bitcoin's market cap increases in size. At a small market cap, a large amount of money can create huge swings in price e.g. if $1B was invested into BTC at a $10B market cap the price instantly jumps about 10%. But as the market cap grows e.g. $100B, a $1B investment would only make the price jump around 1%. </p>

<p>On that note I know that some hedgefunds and institutional investors aim to limit volatility of clients money by implementing trading techniques such as 'stop losses' and 'take profits'.</p>

CC BY-SA 3.0
2017-11-21T06:36:46.507Z
2017-11-21T06:36:46.507Z
Josh
<p>Bitcoin holders can hedge their exposition to bitcoin price fluctuations by using derivatives (e.g. futures, options, ...). This is a common practice, not only for bitcoin but for any other asset held by an entity that prefers to trade some potential upside for a lower risk.</p>

CC BY-SA 4.0
2022-04-29T06:42:16.497Z
2022-04-29T06:42:16.497Z
Fernando N.
<p>I am a French student in a Business School and currently working on a Bitcoin study.</p>

<p>I have 2 questions to you:</p>

<ul>
<li>Are there means, for companies or states, to limit or at least to curb on the volatility of Bitcoin?</li>
<li>If not, can a company adopt measures to protect itself from a drastic slump of the Bitcoin price? If so, what are those?</li>
</ul>

CC BY-SA 3.0
2018-02-23T23:25:33.853Z
Welcome to Bitcoin.SE! A part of [this answer](https://bitcoin.stackexchange.com/a/71191/75001) addresses to your question, I think.
Willtech
<price-volatility>
Bitcoin Volatility
Quentin Cluzel
# Bitcoin Volatility

(Asked by: username_0 on 2017-02-09)

I am a French student in a Business School and currently working on a Bitcoin study.

I have 2 questions to you:

* Are there means, for companies or states, to limit or at least to curb on the volatility of Bitcoin?
* If not, can a company adopt measures to protect itself from a drastic slump of the Bitcoin price? If so, what are those?

**Tags:** price-volatility

> **Comments:**
> **username_1**: Welcome to Bitcoin.SE! A part of [this answer](https://bitcoin.stackexchange.com/a/71191/75001) addresses to your question, I think.  

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## 5 answers

### Answer by username_2 on 2017-05-13. Score: 1

If the respective Nation or company had immensely deep pockets, they could guarantee the Bitcoin price for some time by erecting immense buy / sell walls on all major exchanges. This is suggested for completeness only, as I suspect that this would be an insanely expensive endeavor.

The correct answer is likely that they should hedge their exposition with futures as is common practice in situations where a company has liabilities in a foreign currency.


---

### Answer by username_3 on 2017-05-12. Score: 0

> If not, can a company adopt measures to protect itself from a drastic slump of the Bitcoin price ? If so, what are those?

Actually, several bitcoin brokers offer some future and margin trading so you can at least hedge your risk by trading Bitcoin futures.


---

### Answer by username_4 on 2017-02-10. Score: 0

I have absolutely no authority in the field and I am just expressing my opinion, so please don't quote me on the following.

Bitcoin is a decentralised currency, that is to say no single entity can govern its value and the assets are not stored on a server in someone basement. Authorities can try to affect Bitcoin by making it illegal or passing new laws thus making the price fluctuate greatly. As a simple example, yesterday 2 of the big Chinese exchangers introduced new AML measures and have disabled withdrawals for up to a month, directly impacting the price as Bitcoin holders dumped a lot of their assets. Some more legislation by the Chinese governement have been affecting prices for months, you should follow the news on www.coindesk.com to stay up to date.

So I believe that the answer to your question is that it is not possible to curb the prices.


---

### Answer by username_5 on 2017-11-21. Score: 0

Bitcoins volatility will naturally decrease with time as can be extrapolated from this graph <https://www.buybitcoinworldwide.com/volatility-index/>. This makes sense as Bitcoin's market cap increases in size. At a small market cap, a large amount of money can create huge swings in price e.g. if $1B was invested into BTC at a $10B market cap the price instantly jumps about 10%. But as the market cap grows e.g. $100B, a $1B investment would only make the price jump around 1%.

On that note I know that some hedgefunds and institutional investors aim to limit volatility of clients money by implementing trading techniques such as 'stop losses' and 'take profits'.


---

### Answer by username_6 on 2022-04-29. Score: 0

Bitcoin holders can hedge their exposition to bitcoin price fluctuations by using derivatives (e.g. futures, options, ...). This is a common practice, not only for bitcoin but for any other asset held by an entity that prefers to trade some potential upside for a lower risk.


---

