5 ms·

You're right that BTC has a floor because there's some economy behind it. I'd say in the 100USD-1000USD/coin range.

by mjburgess 4y ago

benreesman 4y ago
I’ll sell you that contract up to what I can finance it at.
- dmoy 4y ago
  You completely ignored what GP said. The floor is different from what people will sell it to you for right now. AMZN may have a floor of $ASSETS / #SHARES (or something, I just made that up), but that doesn't mean anyone will sell it to you for that right now.
  - uoaei 4y ago
    It's like any other investment option, in that it's basically a legalized bet with contract language enforcing it.
  - hinkley 4y ago
    That’s just the sort of definition of Floor that leads to internet breaking production outages.
    - benreesman 4y ago
      Thank you.
  - benreesman 4y ago
    Anyone can invent quasi-financial terms to make grandiose claims. The beauty of the market is that loudmouths don’t participate in the market for long. I’ll sell an American-style options contract to someone who thinks BTC is going anywhere near there at Black-Scholes -75. And I’ll have no trouble financing it. You want the other side?
    - joebob42 4y ago
      I don't think "is this where the price is going" really has anything to do with what gp was even saying.
    - pcthrowaway 4y ago
      I'm pretty bullish crypto but I think there's a chance Bitcoin hits $1000 again in the next 10 years or so.. mainly because I think the case for Ethereum is much better. I don't understand what Black-Scholes means, but if you're willing to take 10 to 1 odds in my favour I'll draw up a smart contract: we both deposit USDC and receive tokens for our position which can be resold if desired; if bitcoin hits $1000 or less according to the Chainlink BTC_USD oracle at any point between now and 10 years from now, I get 10 USDC for every one of mine wagered
    - px43 4y ago
      Shh.. you're scaring all the people who think their computer science degree gives them exceptional insight into how money works.
      - benreesman 4y ago
        In fairness, I was one of those people until I landed at a satellite office of my SV company in New York and started hanging out with real finance players.
    - mattnewton 4y ago
      Not the person you are responding to, but is there somewhere reputable offering these kinds of contracts to no-name retail investors like myself? I would absolutely load up on something like 12,000 - 15,000 USD bitcoin puts depending on the time decay people are offering and how certain I could be that they would actually let me exercise them, and not freeze trading or even go belly up during the crash. I am somewhat.. skeptical I will be able to exercise them on an primarily crypto exchange like Binance that has blocked trading during freefalls before that is structurally dependent on the price of crypto to some extent.
      - 4y ago
someo1ne 4y ago
Happy to buy btc for $1000 of you!!

You're right that BTC has a floor because there's some economy behind it. I'd say in the 100USD-1000USD/coin range.

benreesman 4y ago

I’ll sell you that contract up to what I can finance it at.

dmoy 4y ago
You completely ignored what GP said. The floor is different from what people will sell it to you for right now. AMZN may have a floor of $ASSETS / #SHARES (or something, I just made that up), but that doesn't mean anyone will sell it to you for that right now.
- uoaei 4y ago
  It's like any other investment option, in that it's basically a legalized bet with contract language enforcing it.
- hinkley 4y ago
  That’s just the sort of definition of Floor that leads to internet breaking production outages.
  - benreesman 4y ago
    Thank you.
- benreesman 4y ago
  Anyone can invent quasi-financial terms to make grandiose claims. The beauty of the market is that loudmouths don’t participate in the market for long. I’ll sell an American-style options contract to someone who thinks BTC is going anywhere near there at Black-Scholes -75. And I’ll have no trouble financing it. You want the other side?
  - joebob42 4y ago
    I don't think "is this where the price is going" really has anything to do with what gp was even saying.
  - pcthrowaway 4y ago
    I'm pretty bullish crypto but I think there's a chance Bitcoin hits $1000 again in the next 10 years or so.. mainly because I think the case for Ethereum is much better. I don't understand what Black-Scholes means, but if you're willing to take 10 to 1 odds in my favour I'll draw up a smart contract: we both deposit USDC and receive tokens for our position which can be resold if desired; if bitcoin hits $1000 or less according to the Chainlink BTC_USD oracle at any point between now and 10 years from now, I get 10 USDC for every one of mine wagered
  - px43 4y ago
    Shh.. you're scaring all the people who think their computer science degree gives them exceptional insight into how money works.
    - benreesman 4y ago
      In fairness, I was one of those people until I landed at a satellite office of my SV company in New York and started hanging out with real finance players.
  - mattnewton 4y ago
    Not the person you are responding to, but is there somewhere reputable offering these kinds of contracts to no-name retail investors like myself? I would absolutely load up on something like 12,000 - 15,000 USD bitcoin puts depending on the time decay people are offering and how certain I could be that they would actually let me exercise them, and not freeze trading or even go belly up during the crash. I am somewhat.. skeptical I will be able to exercise them on an primarily crypto exchange like Binance that has blocked trading during freefalls before that is structurally dependent on the price of crypto to some extent.
    - 4y ago

someo1ne 4y ago

Happy to buy btc for $1000 of you!!