[cryptography] Digital cash in the news...

Meredith L. Patterson clonearmy at gmail.com
Mon Jun 13 04:38:55 EDT 2011


On Mon, Jun 13, 2011 at 6:50 AM, John Levine <johnl at iecc.com> wrote:
> PS: For anyone who wants a crypto currency backed by gold, that's
> functionally equivalent to a gold ETF, of which there are several,
> such as ticker symbols IAU, GLD, GTU, SGOL, and AGOL.  They do what
> they do perfectly adequately, but they are in no sense currency.
> Bubble sceptics can trade put options on them.  Too bad there's no
> options on bitcoins.

There already are options on bitcoins. #bitcoin-otc [1] nominally
supports them in its order book, though I see little use so far [2].
Apparently someone wrote a put for 100BTC at a strike price of
$0.75/BTC with a 1.50BTC premium two months ago, maturing 31 May 2011
[3]; the option did in fact sell but I have no idea whether it was
exercised. Bitcoin calls have been around on the forum since at least
January [4], complete with risk reversal strategies ([5] is a textbook
example of a collar though not a zero-premium one).

[1] http://www.bitcoin-otc.com
[2] http://bitcoin-otc.com/vieworderbook.php?notes=option
[3] http://www.bitcoinmoney.com/post/4585101363/first-bitcoin-put-option-contract
[4] http://forum.bitcoin.org/?topic=2986.0
[5] http://forum.bitcoin.org/index.php?topic=2986.msg41580#msg41580

Cheers,
--mlp



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