THE PRICE OF BITCOINS IS CRASHING SELL SELL SELL - page 3.

Jack of Diamonds

sr. member

Activity: 252

Merit: 251

Quote from: sketchman on June 10, 2011, 03:07:22 PM

A limit on trades per hour by one person could be useful.

It was back down to 22.8, then I refreshed and got 22.5. It seems that the limited demand for coins by actual merchants and the potential shutdown by the US government are starting to scare people away.
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Price fluctuates wildly every weekend because wire transfers are disabled. You can't withdraw or add money by bank funds during Sat-Sun.

Take a look at historical data to back it up.

sketchman

newbie

Activity: 10

Merit: 0

Quote from: Jack of Diamonds on June 10, 2011, 03:02:56 PM

Quote from: onesalt on June 10, 2011, 03:00:52 PM

http://i.imgur.com/uVrXG.png

Um, Hes actually correct, the price of bitcoins is crashing.

No, a group of speculators is pushing it up and down. It literally was down to $20 5 minutes ago and I refreshed the page 10 minutes later & trades were being done at $26.

A limit on trades per hour by one person could be useful.

It was back down to 22.8, then I refreshed and got 22.5. It seems that the limited demand for coins by actual merchants and the potential shutdown by the US government are starting to scare people away.

bcpokey

hero member

Activity: 602

Merit: 500

I wish I had had some more money in mtgox, woulda been nice to buy up at 20.

bitoption

newbie

Activity: 56

Merit: 0

Limiting trades is not the right answer. The graph is misleading; if you sell down all the way to $20, and then buy 1 BTC, you'll buy back at the original price up at say $26, and the price graph will look like that. You need to take into account volume; also, there's not enough high frequency trading and breadth to keep the graphs from looking like that right now.

The best thing that can happen right now is more traders, faster trade execution and keeping websockets up at Mt. Gox;all those will curb this a bit.

kuba_10

member

Activity: 99

Merit: 10

MtGox's ball bounced up again. And again, nothing to worry about.

sam

newbie

Activity: 4

Merit: 0

Thanks for the new graph, I updated my post. I feared something awful may happen.

Jack of Diamonds

sr. member

Activity: 252

Merit: 251

Quote from: onesalt on June 10, 2011, 03:00:52 PM

Um, Hes actually correct, the price of bitcoins is crashing.

No, a group of speculators is pushing it up and down. It literally was down to $20 5 minutes ago and I refreshed the page 10 minutes later & trades were being done at $26.

A limit on trades per hour by one person could be useful.

bitoption

newbie

Activity: 56

Merit: 0

So, tonto, your currency risks with that trade are essentially that BTC goes super low, and you'll wish you'd been able to sell, while they were instead locked up in the call until July 28.

The USD will go to you immediately, and you'll get either your BTC back, or the $50 at some point. If you don't get the $50 by the expiration date, you'll have the BTC unlocked and you can do it again, withdraw, exchange, whatever you like.

onesalt

hero member

Activity: 756

Merit: 500

Um, Hes actually correct, the price of bitcoins is crashing.

billyjoeallen

legendary

Activity: 1106

Merit: 1007

Hide your women

ok. 20 BTC coming your way. I hope I can in this before the selling panic ends.

tonto

hero member

Activity: 609

Merit: 500

So if I understand this correctly.

If I used your example, of 50USD per btc, in July. If July comes and it doesn't hit that, I'm not out anything, right? But if July comes and hits $50, then I get that $50 plus whatever I put in the strike price?

so it's a win-win? Or do I lose if one of those parameters doesn't hit right?

bitoption

newbie

Activity: 56

Merit: 0

1) So, register at https://bitoption.org.

2) Deposit some BTC

3) On the right side, under Place an order, put in order in.

You want to keep your coins and get some cash, and are willing to give them up if the price goes up, say double again.

You want USD now, and are willing to sell BTC later for a fixed price. You are Writing a call, or "Asking".

So, you should write a call with strike of $50 US, closing, say end of July, and asking whatever you'd like in "interest". "Interest" is really just USD that someone pays you for the right to buy if the price goes over the "strike price." It will be USD denominated; so once someone buys your call you can exchange back for BTC if you like, or keep it as USD if you prefer.

Attached is an explanatory image.

clickbangdone

newbie

Activity: 14

Merit: 0

Write some puts on the option exchange I they will get snapped up fast

billyjoeallen

legendary

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Quote from: clickbangdone on June 10, 2011, 01:02:51 PM

Quote from: billyjoeallen on June 10, 2011, 12:47:11 PM

Quote from: bitoption on June 10, 2011, 12:24:54 PM

You're correct in the case of selling a covered call, which is what I did.

This seems too good to be true. Why don't you just borrow money on your credit cards at 21%, buy bitcoins, lend them out and get a guaranteed 72%?

It's not a guaranteed 72% unless bitcoins are worth what you paid for them before the option expires.

I wish someone would starting writing puts come on pumpers put your money where your mouth is

Bitcoins are already worth more than double what I paid for them. I'd rent them to you if I could be reasonably certain I'd get paid back with interest. I just don't understand the best way to do that or if it's possible.

d.james

sr. member

Activity: 280

Merit: 250

Firstbits: 12pqwk

woooot i can afford to get some coins now, time to buy

clickbangdone

newbie

Activity: 14

Merit: 0

Quote from: billyjoeallen on June 10, 2011, 12:47:11 PM

Quote from: bitoption on June 10, 2011, 12:24:54 PM

You're correct in the case of selling a covered call, which is what I did.

This seems too good to be true. Why don't you just borrow money on your credit cards at 21%, buy bitcoins, lend them out and get a guaranteed 72%?

It's not a guaranteed 72% unless bitcoins are worth what you paid for them before the option expires.

I wish someone would starting writing puts come on pumpers put your money where your mouth is

billyjoeallen

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Hide your women

Quote from: bitoption on June 10, 2011, 12:24:54 PM

You're correct in the case of selling a covered call, which is what I did.

This seems too good to be true. Why don't you just borrow money on your credit cards at 21%, buy bitcoins, lend them out and get a guaranteed 72%?

Why didn't you have more than 5 BTC to lend?

bitoption

newbie

Activity: 56

Merit: 0

You're correct in the case of selling a covered call, which is what I did.

billyjoeallen

legendary

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Hide your women

Quote from: bitoption on June 10, 2011, 11:41:51 AM

We'll have good volume on bitoptions in the next week or two; why not throw out some high bids?

I just 'lent' BTC out at a rate of 72% annually if prices stay below $45 for the next 45 days. If they don't, I'll get $45 per BTC.

I did have to wait 24 hours, but I bet the buyer would have bought more, as they bought all five from me.

To do this trade, just bid on calls at a comfortable strike price, and a dollar price that gets you what you want to see. Not hard.

I don't quite understand. It sounds like you are either guaranteed to make 72% profit OR the difference between $45 and whatever your purchase price was. If that's true, then the only risks are your exchange folding up and taking my BTC with it, OR the potential lost opportunity to profit of even more if the price goes up to >$45. is this right?

kiba

legendary

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Merit: 1020

http://bitcoinweekly.com/articles/comic-reaction-after-dramatic-rise-of-bitcoin-s-value

I heard somebody screams, BITCOIN BUBBLE!

Topic: THE PRICE OF BITCOINS IS CRASHING SELL SELL SELL - page 3. (Read 23568 times)