Bitcoin is very volatile cryptocurrency. Its course can significantly change, taking off or collapsed from the news or a Twitter post. It is this feature of Bitcoin is often cited in the debate his opponents, which, in General, right. But Swissquote Bank reports that it has found a way to curb sudden surges of Bitcoin using a private algorithm and an investment portfolio based on bitcoin and the dollar.
The idea is simple: funds are held in a mix of traditional and cryptocurrency algorithms will monitor the information about Bitcoin on the Network, promptly responding to rate changes and market signals. Assessing the situation, the algorithm will automatically translate Bitcoin into dollars or Vice versa.
The Bank believes that this scheme will reduce the risks of investing in a cryptocurrency that has recently interested in increasing the number of investors.
“They are, however, concerned about the volatility of Bitcoin. So we tried to build the trading algorithm, which can protect the system from surges,” explains the Bank’s management.
It is difficult to say how effective will be the Bank’s scheme, but, apparently, if it will run, we learn about it pretty quickly.
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The Swiss Bank proposed a solution to the problem of the volatility of Bitcoin
Vyacheslav Larionov