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December 20, 2013, 01:38:39 PM |
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Thought I could plant an interesting idea to you. I believe there is a serious market for a low-cost Bitcoin trading application. Here is the design:
* You create a average price by pulling feeds from Mt.Gox, Bitstamp, for instance. * Then you allow people to bet on the price development by entering into contracts. * These contracts has, for instance, 5 min, 10 min, 15 min, 30 min, 1 hour duration. * You pair the "gamers" against each other, one betting up and one down and distribute Bitcoins, depending on how it goes.
Example: AVG(MtGox and Bitstamp) = 500 USD/BTC
A bet 10 BTC on price moves up in 1 hour. B bet 7 BTC on price moves down in 1 hour.
From these two, you can make a 7 BTC large contract. The contract should have gearing, say 3X. So, if price is 550 after one hour, you give 10% * 3 * 7 = 2.1 BTC to person A, from B. The rest is returned.
The advantages of this is that it is possible to daytrade bitcoin prices at a VERY low fee. Remember that Bitstamp and Mt.Gox charge 0,2 - 0,5% fee per transaction. This is a lot of money. No cash needs to be involved.
Thought I should give you my thought, as I'm a little to busy to implement this by my self.
best regards HA
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