Skip to content
Subscriber Only

Holding Bitcoins? You Can Now Hedge Against the Next Crash

The value of Bitcoin swings wildly, but for the enterprising speculator there’s never been a way to profit from declines. A financial startup is trying to change that by creating an exchange where people can bet on the future direction of the currency’s value, up or down.

New Jersey-based Tera Group said Monday it has already facilitated a trade between a company nervously holding Bitcoins and one willing to take the risk of the currency’s value changing over the next 25 days. Leonard Nuara, Tera’s co-founder, wouldn’t identify the parties. Assuming that Bitcoin sticks around, this is a service many companies may consider. Merchants interested in taking Bitcoin payments have expressed concern about holding an asset prone to sudden fluctuations in price.