Show HN: Bitcoin Binary Options Exchange
futureblock.com
futureblock.com
You can avoid this by attracting a large number of risk-takers who diversify their holdings. But, that doesn't obviate the fact that too little derivative regulation caused the financial crisis, not too much.
Where are you operating out of? I'd be really careful operating this sort of thing without legal protections.
It doesn't seem like you have much capital committed to taking these bets. How are you calculating your risk exposure?
This is known as a "Bucket Shop" and is a classic scam.
Most futures/options on "traditional" markets are settled in cash rather than physical delivery.
You're playing craps, only the dealer rolls the dice for you behind a screen and tells you if you won or not.
I wasn't familiar with the specific subspecies of this called "Binary Options" before, but even basic investigation makes it clear that yes, Binary Options are a scam product. There do not appear to be any legitimate binary options marketplace/peddlers.
There's no reason you couldn't structure an exactly equivalent product out of legitimate securities, so there's no reason for this product to exist outside of running cons.
Huh? If I understand this correctly, you win if the price on mtgox goes above a certain strike range. That's public information, so surely you can check yourself if you won or not?
Looks like you have no clue what you're talking about.
The outcome depends on a 3rd party system, which is out of Futureblock's control.
The only real problem I see with the whole thing is trust. Do you trust them not to steal your coins?