Auction for a bitcoin bond

[grondilu]

-----BEGIN PGP SIGNED MESSAGE-----
Hash: SHA1

As a proof of concept, I hereby launch an auction for a bitcoin bond.

This means that I promess to pay a certain amount of bitcoin (called "nominal"), at a certain date (called "maturity").  The nominal is 100 BTC.  Maturity will occur at block number 120,000.

I sell this bond in an auction process that will occur on this thread.  To bid, just post a message with your bid in bitcoins.  Auction will end at block number 116,000.  Paiement should then be done within 10 blocks.

No starting price, but if at the end I'm not happy with the final winning bid, I will cancel the auction.

If selling does occur, I will materialize it with a GnuPG signed document where I will mention whe nominal, the maturity and the bitcoin address where the nominal should be paid at maturity.

Happy bidding!
-----BEGIN PGP SIGNATURE-----
Version: GnuPG v1.4.11 (GNU/Linux)

iEYEARECAAYFAk2UNq0ACgkQq17371C4DmhQIQCg86UwjCUt0q8iyojsOXUI7juB
BpsAn2UtxuFqtXpLPwedvnYap+m2wrx9
=qC0c
-----END PGP SIGNATURE-----

[1714121877]

1714121877

[1714121877]

1714121877

[deadlizard]

I'll bid ฿16.10 (my account balance, lol) to get the ball rolling 

[grondilu]

I'll bid 16.10 (my account balance, lol) to get the ball rolling 

deadlizard initiates the auction and leads with 16.10 BTC

[theymos]

80

[grondilu]

80

theymos leads with 80 BTC

[gusti]

90

[grondilu]

90

gusti leads with 90 BTC

[左]

I bid 100BTC, which means that if I win, I'll just let you keep the darn bond.

OK, to be honest, I'm really unsure how this works. You want someone to pay you now, in exchange for a payout in the future?

[Alex Beckenham]

90.00000001

[grondilu]

I bid 100BTC, which means that if I win, I'll just let you keep the darn bond.

OK, to be honest, I'm really unsure how this works. You want someone to pay you now, in exchange for a payout in the future?

If you bid 100 BTC, this means you'll pay me 100 BTC at block 116,000, and I'll pay you back at block 120,000.  You would lend me money at zero interest rate.

[grondilu]

90.00000001

I can't accept this bid, since so far the bitcoin network only allows paiements with 0.01 BTC precision.

[gusti]

I understand you must pay the bid price now, and he will repay you the nominal value (100) at maturity time.
It's like a loan backed by a bond that you can also negotiate at market prices before maturity.

My bid is now 91.

[grondilu]

I understand you must pay the bid price now, and he will repay you the nominal value (100) at maturity time.
It's like a loan backed by a bond that you can also negotiate at market prices before maturity.

My bid is now 91.

You've just overbidded yourself, but why not...

Gusti leads with 91 BTC

[gusti]

I understand you must pay the bid price now, and he will repay you the nominal value (100) at maturity time.
It's like a loan backed by a bond that you can also negotiate at market prices before maturity.

My bid is now 91.

You've just overbidded yourself, but why not...

Gusti leads with 91 BTC

That was before I saw you did not accept 90.000001 bid, but for sure there will be higher ones too.

[ripper234]

Can you give a rough estimate in real calendar time when the bond will expire, for those of us who don't understand blockchains?

[grondilu]

Can you give a rough estimate in real calendar time when the bond will expire, for those of us who don't understand blockchains?

The time length is 20,000 - 16,000 = 4,000 blocks.   There are about 6 blocks per hour,  so 4,000 blocks is about 666 hours (?! number of the beast??  didn't do that on purpose!)

666 hours is 27 days, so about 4 weeks.

[gusti]

Can you give a rough estimate in real calendar time when the bond will expire, for those of us who don't understand blockchains?

See this : http://bitcoincharts.com/charts/  (upper side of page)

[grondilu]

Idealy people who bid should sign their bid in a message including my initial signed message.

This woudl allow the winning bidder to sign the final bitcoin address.

[gusti]

Idealy people who bid should sign their bid in a message including my initial signed message.

This woudl allow the winning bidder to sign the final bitcoin address.

I will do that later, need to register with GPG first.

[ripper234]

I'll bid 93.5.
How essential is the PGP signing? (Remember, this is only a POC)