Worried about greedy shareholders inflating your stake?
Hedge with BitBIP - tracks 1 billionth of the current share supply.
The price feed is determined completely by the state of the chain and so this "feed" could even be built in.
Brilliant!?
This wouldn't work because shorts can only lose. It is impossible for BitBIPS to fall in value relative to BTSX.
Quote from: bytemaster on September 30, 2014, 08:55:06 PM
This wouldn't work because shorts can only lose. It is impossible for BitBIPS to fall in value relative to BTSX.
?? They fall in value continuously unless shareholders inflate
Quote from: bytemaster on September 30, 2014, 08:55:06 PM
This wouldn't work because shorts can only lose. It is impossible for BitBIPS to fall in value relative to BTSX.
You can always give some fixed instant bonus to shorts. So you pay 3% to peg your BTSX to a bitBIPS.
Am I crazy? These are bips. Nobody wants to go long unless they think the number of shares will increase. *Everybody* wants to short.
Quote from: toast on September 30, 2014, 09:05:30 PM
Am I crazy? These are bips. Nobody wants to go long unless they think the number of shares will increase. *Everybody* wants to short.
Unless there is inflation caused by raising capital... say 10% per year like BTC where the funds went to grow the infrastructure.
As dilution will be pretty predictable for longer periods of time (depends a bit on the model but I assume that it will be a rather stable rate) the market is going to be extremely illiquid at most times.
@Frodo
You look like my evil twin :)
This is one of those crazy days...
I will be willing to go long bips...
Now how should we implement the volatility index?
*the name is clear off course:
bitVOLxx