Topic: [2014-07-28] CD: Coinapult Launches LOCKS, a Tool to Eliminate Bitcoin Price Vol - page 2. (Read 5463 times)
July 30, 2014, 03:08:57 PM
This is just another "service" that essentially books the profit from any Bitcoin appreciation and leaves the customer holding the bag at a static price point. How much do you want to bet they keep their fees in Bitcoin? Its just another payment aggregator that is saying "trust us", while taking their slice of the action, and then some...
July 30, 2014, 08:09:21 AM
Maybe I'm dumb but why do you guys make it so complicated with futures etc? I hope that's not the case. I really hope the Bitcoin is just sold for cash or gold with audited statements.
Delivery (taking final possession of converted funds) is generally expensive and doing it twice for a roundtrip transaction is just insanity. Go ahead and price what markup/markdown would be needed to go from BTC -> USD -> GOLD -> USD -> BTC. I am 100% absolutely sure, the customer's deposited BTC isn't sold for dollars or physical gold. To do that they would need to have fees in the 5% range and who is going to use a service which eliminates volatility but guarantees a 5% loss.
July 30, 2014, 02:37:49 AM
Read the article and i think its a great step towards bringing the common man closer to bitcoin.
Good luck with the project to Coinapult Team.
Duke
Good luck with the project to Coinapult Team.
Duke
July 30, 2014, 02:34:37 AM
How is it different from selling futures with 1:1 leverage?
Well, one difference is that a futures contract has an expiration date.Quote
Another is that you never actually exchange bitcoins for anything.
futures settlement is also in bitcoin, so no difference here. 
July 30, 2014, 02:29:25 AM
Where do you get the coins to pay everyone if that actually happened? If bitcoin suffers a catastrophic crash and most of your users decide to cash out how can you cover that?
Your Bitcoin is already sold, they shut down and give you the cash. It's very simply. I really hope this isn't convoluted like your theories. They should have full fiat and gold reserves, there is no risk.
July 30, 2014, 02:27:38 AM
B-b-b-But... I thaught volatility was what made bitcoin popular to investors. The possibility it gives for good earning in a short period of time make it what it is to some extent.
Bitcoin has many uses, a payment rail is one of the top ones. Someone working at McDonald's saving for a shitpad can't afford any volatility before sending to newegg.
July 30, 2014, 02:24:13 AM
B-b-b-But... I thaught volatility was what made bitcoin popular to investors. The possibility it gives for good earning in a short period of time make it what it is to some extent.
July 30, 2014, 02:22:05 AM
Maybe I'm dumb but why do you guys make it so complicated with futures etc? I hope that's not the case. I really hope the Bitcoin is just sold for cash or gold with audited statements.
This service is critical for people who want to use Bitcoin as a payment rail and not a volatile investment. It's like a universal PayPal with a balance then send it anywhere. Its what I thought circle was doing.
This service is critical for people who want to use Bitcoin as a payment rail and not a volatile investment. It's like a universal PayPal with a balance then send it anywhere. Its what I thought circle was doing.
July 29, 2014, 05:02:35 PM
This is actually useful. It allows you to use bitcoin without being exposed to it. It's exactly like if you just buy your bitcoin on Coinbase right before you need to send it, except your bank account isn't charged (with the 1% coinbase fee) every single time you need to make a transaction.
July 29, 2014, 04:54:10 PM
Capital gain realized the instant it converts to fiat?
July 29, 2014, 04:43:28 PM
Oh, so they don't actually hold the btc, just the cash value of it you put in? If so, that does seem a bit silly but I'm sure it cant just be that and we've missed something here.
From my perspective and cursory understanding of this service, it allows people to think they have exposure to Bitcoin while feeling safe in fiat terms. So many people have no idea what it's like to one's stomach lining to experience these kinds of shifts in pricing. Many have only gone through it once during the last recession and freak out about getting into Bitcoin for using or spending knowing the potential for a freak show happening again. My only curiosity is what does this service add to market cap when it's just an illusion? I know I'm missing something here. 
July 29, 2014, 03:34:48 PM
It would be an interesting way to "short" bitcoin without using an exchange however more transparency on how coinapult is securing the peg is needed.
July 29, 2014, 03:30:50 PM
Bitcoin price volatility is a blessing which will hopefully resume in the near future. 
As you hint, the "bitcoin price volatility" over the last 4 years has been wonderful. ;-)
July 29, 2014, 01:04:50 PM
I've read the 'how it works' explanation but still don't understand how this works. So if you lock or peg your coins to a fiat price that's the amount of fiat worth of coins you will get back anytime?
https://www.youtube.com/watch?v=AxriIkGaY60
July 29, 2014, 10:33:20 AM
Bitcoin price volatility is a blessing which will hopefully resume in the near future.
July 29, 2014, 09:36:18 AM
Oh, so they don't actually hold the btc, just the cash value of it you put in? If so, that does seem a bit silly but I'm sure it cant just be that and we've missed something here.
July 29, 2014, 09:16:40 AM
Thats exactly right. So if you have $600 of BTC locked with Coinapult, then the price of Bitcoin halved in value, you will still have $600 of BTC in your wallet to redeem at any point.
You could do the same by keeping $600 cash in your bank account and just buying on coinbase when you're ready. This service is a waste and an illusion of a service.
They just get to hold your fiat instead of you holding it.
July 29, 2014, 09:15:15 AM
It sounds like they just hold your money and buy the bitcoins at the time you want to use them. Basically like a centralized bank which converts at the last second to bitcoin.
It seems to defeat the purpose of bitcoin unless I am misunderstanding something.
It seems to defeat the purpose of bitcoin unless I am misunderstanding something.
July 29, 2014, 09:01:23 AM
Where do you get the coins to pay everyone if that actually happened? If bitcoin suffers a catastrophic crash and most of your users decide to cash out how can you cover that?
July 29, 2014, 08:45:30 AM
Thats exactly right. So if you have $600 of BTC locked with Coinapult, then the price of Bitcoin halved in value, you will still have $600 of BTC in your wallet to redeem at any point.
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