Topic: Does Something Like the DigitalCoin Free Bank Exist for Bitcoin? - page 2. (Read 1366 times)
December 13, 2013, 06:01:23 PM
Yes, I know baritus has been planning that DGC bank for a long time. It's cool to see him try to put it into action. I hope it works out. More services like that will help BTC and DGC.
December 13, 2013, 05:16:09 PM
Info seen here: http://digitalcoin.co/forums/index.php/topic,4.0.html
I'm also still open to the idea that there is a large flaw in the logic of this kind of service, but I haven't been able to find it yet. It seems like it's basically a buy back option, but I don't see it as an option on any of the Bitcoin exchanges.
Quote
It is time to announce the Free Bank of Digitalcoin, an initiative that aims to introduce a new concept to the crypto-world.
What is the FBD?
A community inspired and funded effort to further the usage of DGC as a store of value and monetary unit.
What services are provided?
The primary service will be hedging and profit enabling. FBD will allow people to purchase DGC at a fixed rate (set to match market price), and hold contracts that provide the option of selling back the DGC at purchase price. Deposits and withdrawals will initially be accepted in bitcoin, litecoin, and USD.
How is this useful to me?
The FBD will serve to lower investor risk in crypto-currency and allow simple, risk free cash flow into digitalcoin.
Example:
1. John Doe decides he wants to invest in digitalcoin but he can't handle downside risk.
2. J.D. contacts the FBD for a DGC quote.
3. J.D. purchases digitalcoin directly from the bank and is given the option to sell them back at purchase cost.
4. Now, if the price drops, J.D. can execute his option and sell back the coins at purchase price. If the market rises, he can sell his digitalcoin on the open market.
By removing liquidity uncertainty regarding DGC, the FBD will serve to promote and nurture digitalcoin growth.
What is the FBD?
A community inspired and funded effort to further the usage of DGC as a store of value and monetary unit.
What services are provided?
The primary service will be hedging and profit enabling. FBD will allow people to purchase DGC at a fixed rate (set to match market price), and hold contracts that provide the option of selling back the DGC at purchase price. Deposits and withdrawals will initially be accepted in bitcoin, litecoin, and USD.
How is this useful to me?
The FBD will serve to lower investor risk in crypto-currency and allow simple, risk free cash flow into digitalcoin.
Example:
1. John Doe decides he wants to invest in digitalcoin but he can't handle downside risk.
2. J.D. contacts the FBD for a DGC quote.
3. J.D. purchases digitalcoin directly from the bank and is given the option to sell them back at purchase cost.
4. Now, if the price drops, J.D. can execute his option and sell back the coins at purchase price. If the market rises, he can sell his digitalcoin on the open market.
By removing liquidity uncertainty regarding DGC, the FBD will serve to promote and nurture digitalcoin growth.
I'm also still open to the idea that there is a large flaw in the logic of this kind of service, but I haven't been able to find it yet. It seems like it's basically a buy back option, but I don't see it as an option on any of the Bitcoin exchanges.
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