Just trying to understand.
Is it not basically selling bitcoin to usd and then buying back from usd to BTC.
How is this different?
neither, fiat is not involved at all
glancing at my browser i see that right now the average BTC/USD exchange rate is about $900
so, if you were to deposit 1 BTC into the site at this moment, you would be marked at depositing $900 worth of BTC
then, 24 hours from now, if, for some reason, bitcoin was listed at $450 per USD, then you could withdraw 2 BTC or $900 worth of BTC. if the price had changed to $1800 per Bitcoin, then you could withdraw 0.5 Bitcoins. I guess that is how he is going to do it. i could be wrong. the idea is to at the moment of deposit, lock the price of your deposited bitcoins at the price for that moment, come back 24 hours later and no matter what the new price, recover your deposit at the old price, sometimes winning, sometimes losing. I think that i am perhaps wrong about his methods he will use, because that doesn't work my way. but, he intends for you to be able to deposit your BTC for a short period and guarantee that you will still get the same price as when you deposited it.
in the futures market, i contract with you to buy something like a cotton future at say, $79, 24 hours from now. if the price goes up, you lose money, if the price drops, i lose money.