Another CFTC thread. Bitcoin derivatives.

[lucif]

Does anyone find sense in bitcoin derivatives?

I just can't imagine how a piece of paper with "Here is 1 Bitcoin" could be better than just 1 Bitcoin.

[herzmeister]

used to wonder about this too. After all, an infrastructure for MtGox codes and the like would have to be built first.

But then, Ripple came along. Ripple will enable Bitcoin derivatives and Bitcoin fractional reserve banking easily.

[lucif]

Bitcoin ??banking?? lol

[herzmeister]

yup, maybe a gateway in ripple doesn't own all the bitcoins it would say it does 

[melvster]

used to wonder about this too. After all, an infrastructure for MtGox codes and the like would have to be built first.

But then, Ripple came along. Ripple will enable Bitcoin derivatives and Bitcoin fractional reserve banking easily.

Ripple can already do btc derivatives.

Consider an IOU at market value.  Then trade out the IOU a day later.

You have futures, forwards and contract for differences.

I welcome regulation, if the goal is fraud prevention. 

[jolly-roger]

Sure. For bitcoins' offline use

[stslimited]

hedging, forward delivery, leverage, time premium

[Bitsinmyhead]

Already exist. Im both buying and shorting Bitcoins through plus500, getting 4:1 leverage. For me its a lot easier than buying selling actual coins as I can deposit using credit card and can buy a lot more coins. Also the site is regulated in the UK so I actually trust it a lot more than most of these Bitcoin exchanges.

[Andrew Vorobyov]

Already exist. Im both buying and shorting Bitcoins through plus500, getting 4:1 leverage. For me its a lot easier than buying selling actual coins as I can deposit using credit card and can buy a lot more coins. Also the site is regulated in the UK so I actually trust it a lot more than most of these Bitcoin exchanges.

Exactly... every sentence of it.