3 ms·
So if the blockchain evolved such that it took 2 or 3 hours for a transaction to clear, and cost, say, $5,000 then during the same 2-hour block Goldman could le
by logicallee 9y ago
So if the blockchain evolved such that it took 2 or 3 hours for a transaction to clear, and cost, say, $5,000 then during the same 2-hour block Goldman could let A sell 50,000,000 pretend bitcoins to B, B could sell 25,000,000 pretend bitcoins to C, and 25,000,000 pretend bitcoins to D, then the price could move up (or down) and A could buy back 25,000,000 from C and 25,000,000 from D, so that A, B, C, and D have the same number of virtual bitcoins that they started with - but the exchange could have resulted in a transfer of net actual dollars between A, B, C, and D - without incurring up to 50 million * $5,000 = $250 billion in transaction fees?
Where even though this net transfer happened, all of A, B, C, and D think that it was fair and what they wanted? (I call them "pretend bitcoins" because they don't need to be reflected in the blockchain - the transaction of 25 million pretend bitcoins in motion aren't reflected in the blockchain.)
feel free to correct me if I'm very wrong.
- rmah 9y agoNeither CME or CBOE bitcoin futures are directly connected to bitcoins. Both will be cash settled (i.e. no bitcoin delivery). There will be no need for buyers, sellers or intermediaries dealing in bitcoin futures to buy/sell/own bitcoin.