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Author Topic: Gaming prediction markets by stuffing the order book  (Read 551 times)
mrmax (OP)
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December 23, 2013, 04:54:31 AM
 #1

Prediction markets let you bet on the future value of BTC. If I make a big bet, can't someone cheat me and win by temporarily changing the exchange rate?

Example: I make a BTC3 bet that BTC won't drop below $300 on Bitstamp at any point in December. Can't someone take the other side of my bet and make a single underpriced sale at $295? Closing price predictions can also be gamed, though not with 100% success.

Real currency options can't be gamed like this. An option owner won't exercise if someone's monkeying with the order book and he can't get the same price.

Seems like an unsolvable problem that limits BTC value predictions to very small stakes?
BTC_HunT3R
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December 23, 2013, 05:12:08 AM
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now  Huh Huh Huh
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