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How many bitcoins can I bet? Balaji is offering to sell a put on BTC with a $1M strike price (which is ITM by $974k) and the underlying is at ~$26k, 90 days to

How many bitcoins can I bet? Balaji is offering to sell a put on BTC with a $1M strike price (which is ITM by $974k) and the underlying is at ~$26k, 90 days to expiration. All you have to do to buy the put is put up 1 BTC ($26k) to potentially win $974k. I don’t think he thought this all the way through.

JVillella 4y ago
I think he is saying if it hyper inflates (they need to agree upon exact criteria) then he gets his 1M back + 1BTC. I don't think he is saying 1BTC > 1M USD.
- quickthrowman 4y ago
  Obviously he’d get his $1M back, why wouldn’t he? I never said he wouldn’t… He is selling a BTC put that expires in 90 days and is worth $800-900k for $26k, that’s all I said. Balaji is betting the hyperinflation makes the BTC worth more than $1M hyper inflated US dollars. If hyperinflation happens, the BTC/USD pair will go up in dollar value.
  - JVillella 4y ago
    That's not what I am saying. I am saying that BTC may be worth 100k, and the USD 500k and he still wins the bet (under the interpretation I mentioned above).
    - JVillella 4y ago
      Nevermind he just updated the thread. >Terms of the bet: ideally someone can set up a smart contract where BTC is worth >$1M in 90 days, then I win. If it's worth less than $1M in 90 days, then the counterparty gets the $1M in USD. https://twitter.com/balajis/status/1636827051419389952?s=20 https://twitter.com/balajis/status/1636827051419389952?s=20
      - deleted 4y ago
        [deleted]
sharemywin 4y ago
wonder if there's a way to pool funds like some kind of ethereum contract. I know ethereum won't talk to bitcoin, but maybe there's a way to do it?
- JVillella 4y ago
  There's something called WBTC[1]. It's very popular. [1]: https://wbtc.network https://wbtc.network
  - Laaas 4y ago
    EDIT: This comment is entirely wrong! Disregard. Do note this isn't _real_ wrapped bitcoin. It's essentially a stablecoin which price matches a bitcoin; it is not backed by any bitcoins unfortunately. Real wrapped BTC would require a decentralised bridge which isn't exactly trivial.
    - JVillella 4y ago
      Wrong :) Look at the website.
      - JeremyBanks 4y ago
        [dead]
      - Laaas 4y ago
        FWIW it seems to be centralised, making use of a custodian, albeit it is backed by BTC as you say.
        JVillella 4y ago
        Yes, that's right. It's like USDC in that sense.

JVillella 4y ago

I think he is saying if it hyper inflates (they need to agree upon exact criteria) then he gets his 1M back + 1BTC. I don't think he is saying 1BTC > 1M USD.

quickthrowman 4y ago
Obviously he’d get his $1M back, why wouldn’t he? I never said he wouldn’t… He is selling a BTC put that expires in 90 days and is worth $800-900k for $26k, that’s all I said. Balaji is betting the hyperinflation makes the BTC worth more than $1M hyper inflated US dollars. If hyperinflation happens, the BTC/USD pair will go up in dollar value.
- JVillella 4y ago
  That's not what I am saying. I am saying that BTC may be worth 100k, and the USD 500k and he still wins the bet (under the interpretation I mentioned above).
  - JVillella 4y ago
    Nevermind he just updated the thread. >Terms of the bet: ideally someone can set up a smart contract where BTC is worth >$1M in 90 days, then I win. If it's worth less than $1M in 90 days, then the counterparty gets the $1M in USD. https://twitter.com/balajis/status/1636827051419389952?s=20 https://twitter.com/balajis/status/1636827051419389952?s=20
    - deleted 4y ago
      [deleted]

sharemywin 4y ago

wonder if there's a way to pool funds like some kind of ethereum contract. I know ethereum won't talk to bitcoin, but maybe there's a way to do it?

JVillella 4y ago
There's something called WBTC[1]. It's very popular. [1]: https://wbtc.network https://wbtc.network
- Laaas 4y ago
  EDIT: This comment is entirely wrong! Disregard. Do note this isn't _real_ wrapped bitcoin. It's essentially a stablecoin which price matches a bitcoin; it is not backed by any bitcoins unfortunately. Real wrapped BTC would require a decentralised bridge which isn't exactly trivial.
  - JVillella 4y ago
    Wrong :) Look at the website.
    - JeremyBanks 4y ago
      [dead]
    - Laaas 4y ago
      FWIW it seems to be centralised, making use of a custodian, albeit it is backed by BTC as you say.
      - JVillella 4y ago
        Yes, that's right. It's like USDC in that sense.