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Author Topic: Help for silver bugs  (Read 875 times)
tvbcof (OP)
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June 29, 2011, 05:59:05 AM
 #1

It seems like silver-bugs are having a rough time.  I would like to figure out a way to help them to profit by their wit and short the bitcoin market.

I actually have not paid any attention to exchange markets until now so I don't know much about how they work, but anyway here is my idea.

I'm thinking of something like finding a metal dealer who knows how to deal with bitcoin and is an honest broker.  I would lend my bitcoin to a silver dude to sell short, and he would deposit an excess of silver with the broker.

If the price of bitcoin gets to the point where the silver on deposit equals my loan, the dealer buys bitcoin on an exchange, sends the bitcoin to me, and keeps the silver.

Of course I would take a percent for loaning out my bitcoin.  The dealer/escrow guy would also need a cut for his troubles.  The silver dude could make a ton because the bitcoin market is so sure to crash...ponzi scheme ya' know...

I think that such a scheme is more-or-less how shorting commodities markets work but don't know what kinds of percentages the various parties take.  Anyone?

Parenthetically, it does strike me as one VERY cool thing about bitcoin is that there really cannot be such thing as a 'naked short'. (?)

---

(Disclosure:  I'm something of a sometimes silver bug and have a ton of the stuff.  I don't want to be known as one, however, until I hear more of them make some cogent arguments about...well...almost anything.  I've no idea if silver could 'crash JP Morgan'.  I actually kind of doubt it but it would be pretty cool if it did.)

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Stephen Gornick
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June 29, 2011, 09:37:19 PM
 #2

Maybe this guy would be your first speculator:
  - http://www.youtube.com/watch?v=ZVMB1Xf_lwo

Unichange.me

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tvbcof (OP)
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June 29, 2011, 11:19:30 PM
 #3


I fell asleep last night thinking about the implementation a bit more.

Some of my ideas revolve around the possibility of all such 'bets':

 - details of a bet being transparent to a community.

 - margin calls being automated.

 - distribution wallet(s) being encrypted with members of the the community holding pieces of the decryption key such that a quorum of the community could release funds to the short seller or the lender (depending on how the bet panned out.)

 - the community decides what is an unfair disruption (like the Mt. Gox hack or whatever the next event might be.)

Really (and ideally) about the only person who would take a risk with his/her collateral would be the person who desired, with enough vigor, to short the market.

---

The funny thing is that the whole shorting markets, and even playing around with them, was somewhat disdainful to me only a few weeks ago.  Now that I am screwing around with them, I'm kinda sorta starting to see the 'value' of liquidity and speculative interest.  Even if it is just entertainment value.  Probably it would be better for the bitcoin project if these kinds of games came in a bit later (if ever.)  Who knows.

sig spam anywhere and self-moderated threads on the pol&soc board are for losers.
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