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Topic: Cryptocurrency with Cryptoderivatives (Read 1302 times)

member
Activity: 476
Merit: 13
November 13, 2018, 06:37:39 PM
#3
I think the less derevatives for some cryptocurrency, the easier it is for it to grow. If I honestly don’t like it, derivatives are gaining popularity in the cryptocurrency market.
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Activity: 0
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July 04, 2022, 03:28:15 AM
#2
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legendary
Activity: 1050
Merit: 1003
June 19, 2011, 04:51:56 PM
#1
Supposing such a currency is technologically feasible, could Bitcoin survive the creation of a competing alternative currency that incorporated cryptoderivatives? Why did you pick your answer?

Recent security breaches at Mt. Gox have shown how vulnerable bitcoin is to counterparty risk at exit points (the risk that Mt. Gox or other another counterparty loses your money, the high fees you pay to insure Mt. Gox against this risk).
If a cryptocurrency with derivatives was created, the security of Bitcoin could be duplicated in derivatives market that allowed significant speculation on future price movements within a p2p system.
The only counterparty risk would be the integrity of the block chain (which exists in the current system already).

For a proposal on one way in which cryptoderivatives might be set up, see http://forum.bitcoin.org/index.php?topic=19130.0

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