I want to send money throug bitcoin, is there anyway to overcome the votality?

Fireball

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Quote from: finway on December 05, 2011, 11:17:56 AM

I think MtGox or Bitconica should develope some "FUTURE" or "OPTION" products,

then i can't buy some bitcoins and sell some FUTUREs.

I'm creating this market (called ICBIT) - see https://bitcointalksearch.org/topic/icbit-derivatives-market-usdbtc-futures-trading-live-50817

twobitcoins

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I see a lot of interest in using bitcoin as an intermediate currency just to transfer other currencies from place to place. Even without the volatility issue, I'm not sure how cost effective it is. Exchanging between bitcoin and other currencies has costs: both the fees charged by exchanges as well as the spread (e.g. the price at which you can buy 100 BTC is not the same as the price at which you can sell 100 BTC, even ignoring fees). You could easily lose a few percent to currency exchange costs. It's still a lot better than paying a $50 wire transfer fee on a $1 transfer for example, but in many situations you may not come out ahead.

finway

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I think MtGox or Bitconica should develope some "FUTURE" or "OPTION" products,

then i can't buy some bitcoins and sell some FUTUREs.

MysteryMiner

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Death to enemies!

How about buying 1000 BTC's for 3$ each and selling them for let's say 4,50$ each? The market volatility works both ways, You never know for sure.

Herodes

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At times market is very quiet (low volume on mtGox) and the price is very flat, perhaps that would be the best time to send a larger amount? But of course, there are never any guarantees. Another solution could be to send the money in batches, that way you'd spread the risk out more. You could also look for a slight uptrend and send the funds then, but again it would be no guarantee, but if you're lucky you could even make a few percents off your transfer.

finway

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Quote from: RodeoX on December 05, 2011, 10:49:05 AM

Sounds like your looking to buy insurance.

You can say that.
Insurance need to be there while sending money through the volatile bitcoin.

occulta

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Quote from: RodeoX on December 05, 2011, 10:49:05 AM

Sounds like your looking to buy insurance.

lol its true, i would love me a piece of this also.

teek

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Take 10% - short with 10:1 leverage on bitcoinica.. there's you're hedge.

RodeoX

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The revolution will be monetized!

Sounds like your looking to buy insurance.

Meni Rosenfeld

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Quote from: finway on December 05, 2011, 10:14:42 AM

Quote from: barbarousrelic on December 05, 2011, 08:11:53 AM

No. The essence of Bitcoin is that its value floats, it is not tied to a dollar value, its value can go up or down due to market forces.
However, I would think that within an hour, the price will "probably not" swing very greatly.

3% is "Great".

3% is probably much less than what it would cost you to hedge against the risk. It's also less than what it would cost you to use an alternative like PayPal. And remember, as opposed to these options, it's not a 3% loss, it's a 3% fluctuation which could be either up or down and in expectation makes no difference.

barbarousrelic

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Quote from: finway on December 05, 2011, 10:14:42 AM

Quote from: barbarousrelic on December 05, 2011, 08:11:53 AM

No. The essence of Bitcoin is that its value floats, it is not tied to a dollar value, its value can go up or down due to market forces.
However, I would think that within an hour, the price will "probably not" swing very greatly.

3% is "Great".

I mean that if you buy 1000 BTC, immediately transfer them, and then the other person immediately tries to sell them by placing a sell order at the same price you bought them, your order will likely be filled within an hour or two. But this is of course not guaranteed.

If it is absolutely crucial that your funds transfer maintain the same dollar value, you will be best off sending dollars and not using Bitcoin. I would recommend you use Dwolla.

finway

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Quote from: barbarousrelic on December 05, 2011, 08:11:53 AM

No. The essence of Bitcoin is that its value floats, it is not tied to a dollar value, its value can go up or down due to market forces.
However, I would think that within an hour, the price will "probably not" swing very greatly.

3% is "Great".

barbarousrelic

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Quote from: finway on December 05, 2011, 01:45:58 AM

Quote from: BitPay Business Solutions on December 04, 2011, 11:04:03 PM

May I ask why you bought all these bitcoins?

I just want to transfer my money from China to USA, for example.

Quote from: BitPay Business Solutions on December 04, 2011, 11:04:03 PM

What is your time frame to lock in the $3 price?

Let's say 1 hour (6 confirms)

I just want to send money through bitcoin and overcome the risk to bitcoin's price,
Is there anyway to make this type of fee constant(irrelevant to the price of bitcoin)?

No. The essence of Bitcoin is that its value floats, it is not tied to a dollar value, its value can go up or down due to market forces.

However, I would think that within an hour, the price will "probably not" swing very greatly.

finway

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Quote from: BitPay Business Solutions on December 04, 2011, 11:04:03 PM

May I ask why you bought all these bitcoins?

I just want to transfer my money from China to USA, for example.

Quote from: BitPay Business Solutions on December 04, 2011, 11:04:03 PM

What is your time frame to lock in the $3 price?

Let's say 1 hour (6 confirms)

I just want to send money through bitcoin and overcome the risk to bitcoin's price,
Is there anyway to make this type of fee constant(irrelevant to the price of bitcoin)?

fellowtraveler

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Quote from: jjiimm_64 on December 04, 2011, 11:18:02 PM

I would love to write covered calls on my bitcoins.......

You can do this now...

You can issue a contract with whatever legal terms you wish, and distribute shares in that issue. People can trade those shares on markets.

You can also write scriptable clauses, that will stash funds from the listed accounts, or make payments on a regular schedule, etc.

jjiimm_64

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I would love to write covered calls on my bitcoins.......

BitPay Business Solutions

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Quote from: finway on December 04, 2011, 10:52:45 PM

Is there anyway of hedging?

eg: I bought some 1k BTC at $3, If i pay $10, can anyone or anything make sure i can sell my 1k BTC at $3 ?

maybe some Derivatives can be made ? can Derivatives be p2p?

May I ask why you bought all these bitcoins?

What is your time frame to lock in the $3 price? I'm sure someone can plug that into a Black-Sholes model and write you a $3 put contract. But given bitcoin's volatility, and the $2.80 price, you'll probably pay 50 cents per bitcoin for it.

finway

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Quote from: Eveofwar on December 04, 2011, 10:53:48 PM

How about a 1000 BTC sell order at $3 on MtGox ?

you can't sell BTCs at MtGox when you dont' have BTCs,
and you can't conclude this deal when the price is at $2.8

brendio

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Quote from: Eveofwar on December 04, 2011, 10:53:48 PM

Quote from: finway on December 04, 2011, 10:52:45 PM

Is there anyway of hedging?

eg: I bought some 1k BTC at $3, If i pay $10, can anyone or anything make sure i can sell my 1k BTC at $3 ?

maybe some Derivatives can be made ? can Derivatives be p2p?

How about a 1000 BTC sell order at $3 on MtGox ?

That does not guarantee that the sell order will be filled if the price drops.

Eveofwar

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Quote from: finway on December 04, 2011, 10:52:45 PM

Is there anyway of hedging?

eg: I bought some 1k BTC at $3, If i pay $10, can anyone or anything make sure i can sell my 1k BTC at $3 ?

maybe some Derivatives can be made ? can Derivatives be p2p?

How about a 1000 BTC sell order at $3 on MtGox ?

Topic: I want to send money throug bitcoin, is there anyway to overcome the votality? (Read 2154 times)