Info-thread: Translation of Useful English topics to Pidgin {mix images}

[CryptopreneurBrainboss]

Welcome, just as the title says, here you'll find useful English threads that has been translated to the different languages we speak in Nigeria without the use of translation tools but personally hand written to pass across the information to those that might find it hard to comprehend English or find it easier to understand when read in a common language they're familiar with. This initiative came into existence to prevent spamming the main Naija discussion thread with translations and obstructing the flow of discussion.

For users interested in the translation of this topics, kindly used this format below to keep the thread clean and readable.

Code:

[color=red][b]Translated Topic in (input native dialect been used[/b][/color];
[color=red][b]Original Topic:[/b][/color] (input title of thread with link to thread)
[color=red][b]Author:[/b][/color] (input original authors name).

Sample:

Translated Topic in Pidgin Language; Everythin wey you wan be know about bitcoin futures but fear no gree you ask am.
Original Topic: Everything you wanted to know about BTC futures but were afraid to ask!
Author: fillippone

Translations on this thread with links.
1: Original topic:
-: Translations:

Ps: This thread is off discussion; all discussion to done on the official Nigeria (Naija) with reference to this thread. DM for thread to be opened for posting your translation.

[1714164595]

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[1714164595]

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[CryptopreneurBrainboss]

Translated Topic in Pidgin Language; Everythin wey you wan be know about bitcoin futures but fear no gree you ask am.
Original Topic: Everything you wanted to know about BTC futures but were afraid to ask!
Author: fillippone

PIGIN VERSION OF fillippone THREAD

Everything you wanted to know about BTC futures but were afraid to ask!

https://bitcointalk.org/index.php?topic=5188060.msg52572357#msg52572357


With Bakkt Futures launch, I see say plenty people for here dey ask say wetin be the meaning of future, or dey no really understand  am or e dey confusing and dey see am as another thing wey e no be.
I go try explain some things for here in a way wey e go easy with real life example and I go dey use BAKKT and CME bitcoin futures when I fit or I go use other examples.

FUTURES DEFINITION

Futures na arranged financial agreement wey dey make the pesin wey dey buy am (or sell am) fit buy (or sell) property (called underlying asset); like raw materials or document wey get value for the particular date or price wey them don already know before e reach.

Example we fit check na:



If I buy BAKKT future for 7,942.5 means say based on the  expiry date wey we agree on wey be Oct. 17th 2019 I suppose buy one single bitcoin from BAKKT warehouse for the price of USD 7, 942.5 . The delivery date go be the next day wey be Oct., 18th 2019. I fit trade  this future till Oct 16th 2019.

The same thing if I sell BAKKT future at 7,942.5 means say on the agreed expiring date, on Oct., 17th 2019.  I suppose to sell one single bitcoin from BAKKT warehouse for price of USD 7,942.5

For this picture you go see all the important date for a future:

• FTD (First Trade Date): This na the first day to take start to trade the agreed future.
• LTD (Last Trade Date): This na last day wey you get to trade the agreed future contract.
• FND (First Notice Day): This na the first day when exchange go tell holder of long future position about the delivery of underling assets (The underlying assets for here now na bitcoin).  Na still the first day when exchange go tell holder of short future say time don reach to deliver underlying to the place wey he suppose deliver am.
• LND (Last Notice Date): Na the last date when exchange and holder go take do all this things wey we just talk for up.
• FDD (First Delivery Date): This na the first day wey exchange fit actually transfer the property of the underlying asset to the long future position make e reach the delivery point (that is Bitcoin for BAKKT warehouse).
   first date when the exchange can actually transfer to the the long future position the property of the underlying asset at the delivery point (in this case the Bitcoin at the BAKKT Warehouse).
• LDD (Last Delivery Date): Na the last day wey the exchange fit can actually transfer property of the underlying asset to the long future position for the point of delivery (na the bitcoin for BAKKT warehouse).  For this one na FDD and LDD go together.
• FSD (Final Settlement Date): This na the final day when the future position holder and exchange go take make payments.

For example, the WTI future at the CME tell us say underlying asset for the following definition wey we see for the
Futures contract explain say the quality and quantity and the point of delivery of the underlying assets, their standard na based on how they trade them on exchange e day very important say the asset wey we trade at the end of the future go get e own quality and quantity.  E fit easy for document wey get value make  e can hard well for raw material (Physical commodity).  For AAPL shares day equal while barrel of oil dey they different due to many qualities.

example: the WTI future for the CME explains say underlying assets together with the explanation wey dey the contract.contract specification:

200101.A. Deliverable Crudes
1. Deliverable Crude Streams
Blends of West Texas Intermediate (?WTI?) type light sweet crude streams are only deliverable if such blends constitute a pipeline's designated "common stream" shipment which meets the grade and quality specifications for domestic crude. Enterprise Products Partners L.P. (including any successor in such capacity, ?Enterprise?) and Enbridge Pipeline (Ozark) LLC?s (including any successor in such capacity, ?Enbridge?) Common Domestic Sweet (?DSW?) Streams that meet quality specifications in Sections 101.A.2.- 12. of this rule are deliverable as Domestic Crude.
2. Sulfur: 0.42% or less by weight as determined by ASTM Standard D-4294, or its latest revision;
3. Gravity: Not less than 37 degrees American Petroleum Institute (?API?), nor more than 42 degrees API as determined by ASTM Standard D-287, or its latest revision;
4. Viscosity: Maximum 60 Saybolt Universal Seconds at 100 degrees Fahrenheit as measured by ASTM Standard D-445 and as calculated for Saybolt Seconds by ASTM Standard D-2161;
5. Reid vapor pressure: Less than 9.5 pounds per square inch at 100 degrees Fahrenheit, as determined by ASTM Standard D-5191-96, or its latest revision;
6. Basic Sediment, water and other impurities: Less than 1% as determined by ASTM D-96-88 or D-4007, or their latest revisions;
7. Pour Point: Not to exceed 50 degrees Fahrenheit as determined by ASTM Standard D-97;
8. Micro Method Carbon Residue: 2.40% or less by mass; as determined by ASTM Standard D4530-15, or its latest revision;
? Copyright 2009 New York Mercantile Exchange, Inc. All rights reserved. Page 2 of 6
9. Total Acid Number (TAN): 0.28 mg KOH/g or less as determined by the first inflection point; using ASTM Standard D664-11a (2017), or its latest revision;
10. Nickel: 8 parts per million (ppm) or less by mass; as determined by ASTM Standard D5708-15, Test Method B, or its latest revision;
11. Vanadium: 15 ppm or less by mass; as determined by ASTM Standard D5708-15, Test Method B, or its latest revision;
12. High-Temperature Simulated Distillation (HTSD) as determined by ASTM Standard D7169-16, or its latest revision, as follows:
(a) Light Ends <220°F by HTSD: Not more than 19% by mass;
(b) 50% Point by HTSD: 470°F- 570°F;
(c) Vacuum Residuum >1020°F by HTSD: Not more than 16% by mass.
200102. TRADING SPECIFICATIONS

You see say explaining the quality of barrel of oil hard pass explaining the underlying asset of BAKKT future.:

1 Bitcoin

    For here we get difference with CME future, while future contract dey control 1 Bitcoin, 1 future  for CME dey control 5 Bitcoin

Contract Unit   5 bitcoin, as defined by the CME CF Bitcoin Reference Rate (BRR)

so while BAKKT future get nominal value of around USD 8,000 CME future get national value of 5* USD, 8000 = 40,000

Also the size of contract wey affect smallest price movement: as the value of contract take low, na so the smallest price movement go take low(tick value):

BAKKT

Minimum Price Fluctuation
$2.50 per bitcoin ($2.50 per contract).

CME:

Minimum Price Fluctuation   Outright: 5.00 per bitcoin=$25.00

This means say BAKKT contract fit move from 8,000 to 8,002.5 meaning say who hold one contract go gain 2.5 USD, while CME future fit move from 8,000 to 8,005, meaning say who hold the contract gain 25 USD.

No be by force to deliver the underlying asset.  

For stating, differentiation between futures na the one wey day between physically settled and cash settled:

According to Wikipedia (minor edits for clarity)

• Physical delivery − the amount specified of the underlying asset of the contract is delivered by the seller of the contract to the exchange, and by the exchange to the buyers of the contract. Physical delivery is common with commodities and bonds. In practice, it occurs only on a minority of contracts. [...] The Nymex crude futures contract uses this method of settlement upon expiration.
• Cash settlement − a cash payment is made based on the underlying reference rate [...]. The parties settle by paying/receiving the loss/gain related to the contract in cash when the contract expires.[11] [...]

This na the first innovation of BAKKT future, wey dey physically settled, normally na the buyer of the future dem  dey deliver bitcoin to, while CME futures na cash settlement, meaning say at the end of the future, the dollar wey dey equal to the bitcoin naim dem go pay the holder of the future.  

For the point of delivery, we go see say WTI hard pass Bitcoin.

WTI:

Delivery shall be made free-on-board ("F.O.B.") at any pipeline or storage facility in Cushing, Oklahoma with pipeline access to Enterprise, Cushing storage or Enbridge, Cushing storage. Delivery shall be made in accordance with all applicable Federal executive orders and all applicable Federal, State and local laws and regulations.

At buyer's option, delivery shall be made by any of the following methods: (1) by interfacility transfer ("pumpover") into a designated pipeline or storage facility with access to seller's incoming pipeline or storage facility; (2) by in-line (or in-system) transfer, or book-out of title to the buyer; or (3) if the seller agrees to such transfer and if the facility used by the seller allows for such transfer, without physical movement of product, by in-tank transfer of title to the buyer.

BAKKT:

Delivery Locations
Bakkt Warehouse

in short, BAKKT dey actually provide Client with warehouse (that is wallet) wey dem fit put there bitcoin to trade against their future.
   For real markets, the normal delivery rate of underlying goods wey dey futures contract dey very low only some of the future wey dem trade naim dem dey settle physically or fianciallly.  Most futures position don actually close or wey dem commot from before the future expire, perform opposite action, buyers (sellers) of the future buy (sell) the same quality of the same future contract wey go set off their position ward the exchange commot your position without say you carry the delivery of the future.

This carry us go another grammar for future volume again nas straight forward explanation.

Again from Wikipedia:

Open interest (also known as open contracts or open commitments) refers to the total number of outstanding derivative contracts that have not been settled (offset by delivery).

For each buyer of a futures contract there must be a seller. From the time the buyer or seller opens the contract until the counter-party closes it, that contract is considered "open".

Volume instead is quite a straightforward definition:

Volume is the number of shares or contracts traded in a security or an entire market during a given period of time. For every buyer, there is a seller, and each transaction contributes to the count of total volume. That is, when buyers and sellers agree to make a transaction at a certain price, it is considered one transaction. If only five transactions occur in a day, the volume for the day is five

Let's see an example:

• A sells a future to B: Total volume is 1, open interest is 1
• C sells a future to B: Total volume is 2, open interest is 2
• D sells a future to A: Total volume is 3, open interest is 2

For the last trade A close him position wey he pass to D: therefore the total position wey open for the market no change to 2

• B sells a future to C: Total volume is 4, open interest is 1
• B sells a future to D: Total volume is 5, open interest is 0

After those 5 trades (volume = 5) dey no get any open interest again, all position for the future dey closed, everybody  flat, no final settlement happen for the exchange.

For BAKKT we dey get information about volume only, no be for open interest (update): open interest figure don dey available for Bloomberg terminal. update).



On the 25th of September dey trade 131 contracts but we no know anything about how open interest change.

On the CME we get both informations:




For CME we get both information on the 256th of September dey trade 5,824 contracts  on the September expiry date Na 1172 contracts open tin total; 737 less than yesterday close (Normally dem no dey update OI on real times so both those figures relate to one day before, but you understand). E mean say na 737 contract less than the former close live for the market) wey dey fit deliver when future mature.

FUTURE USES

We fit use Futures hedge or speculate on the price movement of the underlying asset.

Day fit use futures guess or hedge the price movement of the underlying asset for example Bitcoin sensitive business (think of minner) fit use the future take reduce him profit dependency or bitcoin price movement, lock in some kind level of price go therefore, reduce risk and sell better quality of bitcoin futures.  In case bitcoin price go up, profit for mining go go up but loss for bitcoin future go affect am, therefore e go wipe the economic impact of that price movement of the underlying assets.
For the opposite case if bitcoin price decrease e go mean say less profits for the mining operations, but the short position for the future go carouse that kind size profit.
For the two case the, the final profit of the miner, the total of mining operations plus the profit/loss from the future position no go dey affected.
This process na hedging dem dey call am, the purpose of hedging no be to gain from favorable price movement  for the underlying assets, that is bitcoin, but to prevent loss from favorable price movement and maintain the price result wey dem don already see say dem go get: The miner go hedge himself from bitcoin price movements till e reach the same level of profitability wit bitcoin price case.  And yes e profit garus incase bitcoin  increase I but protect himself from any case wey concern say price reduce wey for actually end the meaning operation for the first place.

The second main use for future contract na speculation. To speculate means to gain untop the future position from movements for the price of the underlying assets.  
If person for market wan speculate on increase for the price of the underlying assets for the future, he fit gain, if the buy future contract come sell am later with high price for the future market or gain from the favorable price difference and the spot market, once the future settle (to take delivery of the underlying asset after the settlement of the future con sell aim for the spot market.
The risk na to face loss in case of huge price movement., like say price fall for this case.  If e con end up say the price low pass how e be when dem open the future passion, the holder of long position gats buy the underlying asset for that price in that movement of trade inception can sell the underlying asset at lower price for the sport market, and like that he go loose.
For the opposite, person wey wan profit from lower price, go sell the future, he go gain well well from buying at lower price to settle the future con sell am at the higher price wey dem first talk  to the holder of the long position of the future.

FUTURE PRICE SLOPE: CONTANGO AND BACKWARDATION

Make we look the futures wey CME recently quote?
 

Listed Contracts

Quarterly contracts (Mar, Jun, Sep, Dec) listed for 2 consecutive quarters and the nearest 2 serial months.

In fact the quoted contracts na the following:

FUTURE	MONTH	LAST TRADE DATE	PRICE	OPEN INTEREST
BTCV9	Oct-19	25/10/2019	8275	2142
BTCX9	Nov-19	29/11/2019	8290	248
BTCZ9	Dec-19	27/12/2019	8360	943
BTCH0	Mar-20	27/03/2020	0	0

      

September expiry just expire wen dem write am so the two main cycles expiries na Dec 19 and Mar 20 (dem quote am, dem never trade am) while the serial ones na Oct 19 and Nov 19.
We remember say the bigger open interest dey for the front contract, while the serial contract get little interest and the last serial contract too new to get any opening interest (na only few hours ago dey quote am).
If we check the prices we go say those one dey rise; the calendar spread (the difference between prices for different expiries )na positive. person go think say this na one kind market expectation of easing bitcoin prices between today and December
Well, e dey wrong!
The best expectation for the price wey dey the future na the spot price as e join all the public information we dey make available to price also future prices.  If I dey sure say price of bitcoin go rise in one year, or if I just expect an to rise, I fit just buy bitcoin make the price rise, then move the sport price closer to the future price.  This na non-arbitrage condition wey link price of the same asset different times.
The future price suppose always dey sometime like that.

center]Future prices = spot price (1+ risk free rate) + cost of carry ? convenience yield. [/center]

Make we see wetin e mean

Spot price: as we don see the best estimate for future price na the sport puree,  because all the public information about the future don already get discount for market price. (semi-strong market efficiency ? la Fama).
Funding costs: represented by parte (it risk free rate): to buy bitcoin and trade future require transiency the position low interest rates wordwide wan hold down the importance of this factor, wey suppose be cost and therefore wan increase the future prices.
 cost of carry: or cost of holding bitcoin until the future mature, this na wetin mainly dey make the slope of the future price weather upward or downward dey slope.  Cost of carry na the cost for storing bitcoin e fit low for bitcoin compared to other future underlying assets (thing of a say you store bitcoin instead of gold, or barrel of oil) but las las we no fit the way insurance e cost and storage for insurance level all together if I get any cost to store my underlying assets, E mean say the future price wey I want sell the asset go high pass the spot, to compensate for that kind cost, therefore push future price up.
The convenience yield na the value of getting the availability of use of the underlying asset until future maturity, E dey particularly relevant for financial assets to represent the coupon or dividend paid from spot date till future maturity. They fit think am like negative cost of storage some kind of income for strorage, or profit wey dey come from holding the assets itself.  For Bitcoin case the convenience yield fit come from earned interest wey come from borrowing my bitcoin to exchange or third party (think of blockFI) if I earn interest say I borrow my bitcoin to BlockFI I fit on my own buy them spot con sell them for the future below current market price, if the interest dey more than compensated by interest earned.

The reason why future price show positive (or negative sloping shape gats to do with the cost of carry of the position and the convenience yield: if convenience yield low pass cost of carry, think of any physical commodity, then the future curve go show contango, while if na the convenience yield high pass cost of storage (this na true for many financial asset future ) them the future price go dey characterized by backwardation.
   The shape of the curve still fit change over time as e dey contango today, no be so e ben dey for backwardation for the time of url=https://www.newsbtc.com/2019/01/16/etoro-market-update-bitcoin-in-backwardation-this-is-fine/]CME/CBOE future launch[/url].  E good make dem think of wetin dey push the slope of the curve for this kind mixed nature underlying like bitcoin.

COMMITMENTS OF TRADERS:

Every exchange get community of traders report where you fit gut idea on the positioning of players for the exchange.
   The commitment of traders report bitcoin futures for CME (the only one wey dey important now) we fit find am for here link so we fit dey select Equity Indexes, then Cryptocurrencies and finally Bitcoin to make am Underlying:



E go good make una read User Guide this guide e explain all the technicalities of how dey make this chart but here I go tell you the main thing:

Yes the total open long position dey equal to short position.  If we look aggregate qualities open interest equal to the sun of longs (or shorts) + spread positions.
E dey clearer if we look breakdown by table:



And yes different players get different way we dem dey take trade, so to know if they long or short fit help somehow.

The one wey sweet pass na to study the evidence of long/short balance, volume and open interest, e fit give us hint on how the positioning of players dey affect the price action.

USEFUL LINKS:

• BAKKT Futures Contract Specifications
• CME Bitcoin Futures Contract Specs

Another couse wey I for like make you check na this CME own.

INTRODUCTION TO FUTURES: Definition of a Futures Contract

This na actually very complete course on future e go give give better explanation uses, and all the implementation details for CME.
   This post na only beginning version wey cover some few topics.

  I fit go deeper or cover other topic normal some topics  dey wey I fit explain well well.

list]

• Term structure (contango/backwardation)
• Margins on the open positions (Initial margins/Variation margins/Marking to Market)
• Commitments of traders example

   I dey open to your suggestion to improve the thread, tell me how I go take improve this post.                            



What prompted my curiosity to translate the named article/post to the Pigin version was the challenge I took upon myself for Africans to have a taste of the inspiring post in our own comprehensible language. This will ease the grammars that is been used in the original post and aid individuals that might find it difficult to understand mere vocabularies.

NOTE:   I decided not to translate the quoted words not to alter the exact meaning.
I spent 62 hours to round up this translation and I will be looking to translate more valuable articles/posts like this one.
   
Thanks @fillippone for this opportunity to explore your thread once again.                  

[/list]

[CryptopreneurBrainboss]

Translated Topic in Pidgin Language; #Meritnalyf: Hw 2 dey get alert 4 smartband on merit nd wen dem wryt ur name
Original Topic: #meritislife: How to be notified on a smartband on merits and mentions
Author: fillippone

Translated Pighin Version:

#Meritnalyf: Hw 2 dey get alert 4 smartband on merit nd wen dem wryt ur name

Author:

fillippone

Original Version:

#meritislife: How to be notified on a smartband on merits and mentions

#Meritnalyf
U no bin dey read dis tin if u no bin dey gree frm wen e smal.
So y e be say, ur bodi go jst dey wori 2 dey refresh ur merit page nd 2 dey pres bottin way go "Shw new tok on ur post link dem" wen e be say, e get compas way u fit set nd e go dey alert u sharperly nd e fit stil cari u enta forum wen e dey ur bodi 2 enta forum nd u bin dey run 1 or 2s for d lyf.

Inside dis shw me hw 2 do am but matthias, I go teach u hw u go tak arrange sharperly ur alert matthias 4 simple nd chikini moni alert komputa.

Dis na d plan:

• 1. U go buy smal nd sure 4u smartband
• 2. U go pay moni 4 alert robot way follo am cum
• 3. U go set pass way b say, e go mak am 2 dey get alert frm ur phne.

Oya mak we go!

1. U go buy smal nd sure 4u smartband.

Watin we nid na smartband 2 shw alert way dey enta.
We attention 4 dis matthias na em b forum, so na watin go sure way we nid nd na wth b3 way go tay b4 e die we nid (we no go like say bcus we bin dey power d tin, we mis alert). E get awof way follo cum too.
Me, I bin like Xiaomi MI band 4

Na d specs be dis:
https://www.mi.com/global/mi-smart-band-4/specs

Weight	22.1g
Hw e avoid water rch Rating	5 ATM
Hw e dey shw	AMOLED
Size of d screen	0.95"
Hw e dey shw big rch	120 x 240 RGB
Hw e coulor dip rch	24bit
Hw d screen shine rch	Up to 400 nits (max brightness), brightness dey adjustable
Touchscreen type	On-cell capacitive touchscreen
Screen protection	2.5D tempered glass with anti-fingerprint coating
Button	Single touch button (wake up, go back)
How d materia 2 tie 4 hand be	Hand strap way u fit commot (Mi Smart Band 4 dey go wel wth Mi Band 3 straps)
Handband width	18mm
Handstrap material	Thermoplastic polyurethane
D Hand strap length na	155-216mm
RAM	512KB
ROM	16MB
Sensors	3-axis accelerometer + 3-axis gyroscope; PPG heart rate sensor; Capacitive proximity sensor
Wireless connectivity	BT5.0 BLE
B3	LiPo, 135mAh
Charging Type	2Pin Pogo Pin
Charging time	≤ 2 hours
Hw last rch	Up to 20 days
Moto Type	Rotor
Body material	Polycarbonate
App	Mi Fit
System requirements	Android 4.4, iOS 9.0 or above
Features	Sport Functions: 6 workout modes: Treadmill, exercise, outdoor running,cycling, walking, pool swimming; Count steps, distance, and calories burned
Health monitoring	Workout completion notifications, goal setting, sleep monitoring, heart rate monitoring, all-day heart rate checking, resting heart rate, heart rate chart, idle alerts
Other features	Alarm, proximity sensor, pre-set watch face, set as u like watchface, lock screen, timer, stopwatch, phne alarm and alert, calls way dey enta, message notifications, calendar alert, app alert, weather forecast, Fyn my phne, phne unlock, shw way dey alert, 9th mode, No wori me mode (e dey work wthout phne), song control on band, Bluetooth broadcasting, b3 level display, dfrent ways 2 wear, OTA updates

I tink abi beliv say dis smartband no too cost. D cost go be like #18,000.

U fit fyn am 4 here Amazon.


1ce we don wear am 4 hand, we go put d app way follo am join bodi, add wth our phne nd den on d app alert.

D app way follo join bodi go nid link 2 a social profile like (Facebook abi Google) abi email activation.
If e be like say u dey fear mak ur matter way u 4 like hide no cum cast 4 outside, I 4 like talk say mak u create mail way u fit throwaway 4 @protonmail way u ft use only 4 dis matthias.

2 set d App alert mak e 4 dey work, follo as dem carri talk am under here:


As u dey see 4 d foto way dey up so, I dey 4 18% b3 nd na like 20days ago I charge am las. E fyn con sure 4 me well well say to see say, I get watin dey luk d health nd dey check sleep 2 dey work nd orda alert dem way add.

Dis 1 go allow d smartband 2 shw alert dem way enta phne.
Nw, we ft con go pay moni 4 alert komputa abi robot.

2. Pay moni 4 alert komputa abi robot.

I bin don dey too used 2 @Piggy komputa abi robot, so taaayyy wen d mata cast, e con open my eye 2 hw much e dey eazi 2 use forum.
Betta alert komputa abi robot dey like freedom abi gud health: 1 of dose tins way u get nd u no rilli dey see dem as anytin until e spoil or commot 4 ur hand.

As we dey talk abt d robot 2 dey use, e get at least 2 betta 1ce way sure well well 4 persn 2 reason buy: 

		[TelegramBot] Merit watcher and Mention Notification Bot	Giammangiato Bot specific instructions
		[TELEGRAM] Yet Another BitcoinTalk Notification BOT (merits, mentions, topics,+)	TryNinja Bot specific instructions

3. U go set d smartband 2 dey reciv onli d alert way u wnt frm ur phne

I no sabi u abi hw ur matta b, bt I dey 4 plenty Telegram channels dem wth thousands of pple.
As e con be like dat, 2 dey reciv alert from al dose places dem no go go well, as plenty alert go con be like say u see ghost 4 dream nd e dey kill b3 sharperly.
As e be like dat, me I con arrange my own say, mak e giv me alert on 1 particular channel dem.
U go enta 4
Settings=>Notifications =>Telegram

Toggle Allow Notifications: ON

Pple way dey follo customisation, e dey optional a
nd e go dey alryt owli 4 ur Mobile UI
U go select hw U wnt mak ur alert be 4 d main device way u dey use.



Den u go click 2 d last row

Code:

 Telegram Notification Settings

U go carri dis 1 go Telegram Notification Menu.

4 here, d side dem way sure na em b d 1st one, via say dem don arrange d robot to dey talk.
U go gats commot all d alert dem con liev onli d one 4 d robot.


See all here

All d orda side dem (Group/Channel) U go gats commot dem finish:


If e con be say U no go like dey get alert 4 time wen u dey carri sleep, u ft go set no worri me doingz inside ur iOS.



U ft stil read plenty tins on hw e dey work 4 here here.
4 d settings way I don do here, I don commot alert 4 dis time 23:00- 7.00 so dat I ft dey sleep. Den con ft put my attention 4 forum nd nothin go worri me.


The result is the following:

Hairy Wrist Gallery

	Fillippone	VB1001	TheBeardedBaby	Rosilito
	Vod	TheBeardedBaby (MI5)	Fillippone (MI5)	Maus0728
	ChuckBuk	NeuroticFish	TryNinja

Particula tin way u go like mak d robot dey do:

1. Giammangiato Bot Specific Instructions

Main robot topic:
[TelegramBot] Merit watcher and Mention Notification Bot


Hw 2 join robot dem 2geda:

• Open Telegram chat t.me/Btctalk_meritbot
• Type "/start"

Code:

/start

• Pay mini 4 d merit robot wth ur UID

Code:

 /uid $$yourBitcoinTalkID$$

• Pay moni 2 d robot way dem call wth ur bushname

Code:

 /nick $$urBitcoinTalkBushname

D robot dey run evry time. Evry time way persn call abi wryt ur name as e dey post, abi e carri quote watin u post 4 somwhere, abi persn giv u merit, u go get message frm d robot 4 telegram.

Nw d las work way u go arrange 4 d telegram mak e 4 shw abi giv alert 4 onli watin dey important 2 u b say (dat na 4 onli d message way dey cum frm robot o).

2. TryNinja Bot Specific Instructions

Main robot topic:
[TELEGRAM] Yet Another BitcoinTalk Notification BOT (merits, mentions, topics,+)

2 join d robot dem no hard o, via say d setup process nd d material way dem don arrange to use shw u way na material way sure wella.



I go shw u 1 by 1 hw u go tak dey arrange am.

• Enta Telegram chat t.me/BTTSuperNotifier_bot
• Type "/start"

Code:

/start

Select d language way u go like use

• Put ur bushname inside

Wryt ur bushname nd den u confirm am.

• Put ur BitoinTalk UID

Type your UID and confirm it.


Nw u go select d alert way u go like am 2 dey work nd e get 2 dfrent option way dey 4 wen dem wryt ur name 4 somwhere abi na merit dem giv u.

• U go allow d alert way say dem wryt ur name:

• U go allow d alert way say dem merit u:

• E don finish! U ft call again, d menu nd d tin u go like make e do

[/list]

Code:

/menu

If u check well, u go see say, chance dey way be say u ft arrange d size nd hw d language way dey shw 4 d screen go b. Som languagedon already dey nd plenty way dem go like add dey com. U ft rch TryNinja 2 giv u d one way dem don re-wryt 4 ur own language.



Dis post go dey 4 my project:

Help me re-wrty my best posts 4 inside ur Local Board

I b strong believer 4 d join bodi 2geda of local boards.
I get luck well well say, I sabi open mouth 2 talk watin dey my mind 4 at least som kind language dem bt I knw say no b so e be 4 evry persn.
Plenty pple way dey d forum dey post onli 4 dere local boards bcus say, e get watin dey hold dem nd e ft b language, watin dem beliv in way no allow dem, netwrk no dey abi e get orda reasons.
As I dey like dis, I sabi plenty pple way dey use d forum wella (frm d Italian side dem, via som kind reason way no ft hide) way no dey post 4 where evry body 4 d world dey talk.

I believ say, all dose users dem way no dey talk 4 where evry bodi 4 d world dey talk 4 (English) or 4 orda boards so, dem dey miss wella.

If u tink say u ft help 4 here, u ft go see dis topic!


Frm Mr.right85: Oya na, mak d plenty refreshing end, dat na if e dey bodi 2 buy d smartband o. Mak d learn learn kwantinue.

[Davidvictorson]

Translated Topic in Pidgin Language; Stock-to-Flow Model: Modeling Bitcoin's Value with Scarcity
Original Topic: Stock-to-Flow Model: Modeling Bitcoin's Value with Scarcity
Author: fillippone

Na only few articles wey don mak correct wave for were wetin concern Bitcoin dey like d one wey PlanB write.
D tin wey him do na to try to explain how much wey Bitcoin be with wetin dem call Stock-to-Flow approach.
Stock-to-Flow approach no be new tin for d financial world, e don tey wen dem dey use am for were dem dey do buying and selling; the first time dem relate am to Bitcoin na Saifedean Ammous for him book “The Bitcoin Standard”, him use this approach to take talk about wetin make Bitcoin be “better, correct moni” pass goods and our normal moni.
PlanB’s article don come out since after Saifedean’s book, but e make ogbonge wave; d main koko na to talk about how Bitcoin Price take be and the beta effect and how importanta wey e b for were halvings for bitcoin.

At the time wey I dey write this thing Bitcoin Price been dey around USD 3,400.

For this thread I go try explain some kind misyarn wey dey d article, I go ansa some questions wey some pipo dey always ask, I go study the criticism wey pipo don talk about d model, and some new tins wey don come up.

This link go cari you go d main article:

Modeling Bitcoin's Value with Scarcity

Introduction
Satoshi Nakamoto publish d bitcoin white paper for 31/Oct 2008, him create d bitcoin genesis block 03/Jan 2009, and release d bitcoin code 08/Jan 2009. Na so d journi cari us reach $70bn bitcoin (BTC) market today.
Bitcoin na the first digital object wey hard to find wey the world don ever hear of. E dey hard like silver & gold, and na only for internet, radio, satellite etc dem fit send am give another persin
" As a thought experiment, imagine say e dey hard to find like gold but come cari these tins join bodi: the colour na grey, wey no fit cari nepa light, and wey nor dey strong [..], and dem nor fit use am do beta tin or make shakara.. and one beta, magical tin wey him get be say: dem fit cari pass telephone wire" — Nakamoto

See eh this digital scatcity get correct value. But how mu? For this article I measure scarcity with Stock-to-flow, and use Stock-to-Flow to model bitcoin’s value.

31 Translations don already dey, more go come (I go put dem for here).

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Live Stock-to-Flow Price:
Bitcoin Stock-to-Flow model live chart



Live Stock-to-Flow dashboard:
Bitcoin SF Analysis by @hansolar21



 
F.A.Q

E get plenti questions about d Stock-to-Flow Model wey pipo don ask. Dem don already ansa plenti of dem for may talki talki show( I go put were I gather the ansa dem from). I go copi plenti of dem wey dem don too ask for here. I go use as PlanB take use him mouth talk am to take answer, I go also put my own salt and curry if I see say I need to.

Q1.

Stephan Livera: I guess say d other tin wey if you reason am fit b say market fit change, or e fit overshoot and then undershoot. U fit shook mouth for d matter small??

A1.

PlanB: I gree. e fit be say later wen we talk about d model himesef, you go see say e no dey 100% accurate, true true, because say na just a model; so all those FOMO actions and bull markets and bear shaki shaki, no reali dey there, and you go see am for the chart too. So the model price dey very simple, if we follow the Stock-to-Flow; but for the real life market, wey we dey see correct fear and greed with our two koro-koro eyes, e overshoots and undershoots. Actually eh, wetin you see..., I mean the last two times... be say the market overshoots 3-10x the model value, but undershoots 50% maximum, na one of the tins wey make me reason say, "Okay, so if today our model value dey a little above $6000, 50% of that $3000 go dey d bottom of the current bear market. But yes, na so I take see am.

SLP67

Q2.

“Oh, is the halving priced in?” and I think say dis one show were I pin put for the other arguments; for example d efficient market hypothesis. So, as I be Austrian, and even Saifedean himself, I tink don already talk d same tin, "Look, dem no give everibodi sense equally, and so make we no put hope say wetin dem call d strong form of d EMH, or even sef d weak form of d EMH, no be d correct way to take reason tins," but e get pipo for Chicago School and other schools of thought wey fit  believe in that more. Which side you come dey for d matter?

A2.

PlanB: Your point mak sense. Actually, dat one na one of my first charts, d halving chart with d color overlay; e dey show how much wey Bitcoin be with d months until d next halving; you fit see clearly from d chart say d halving is not priced in, or at least was not priced in d last two times. So, wetin I fit guess be say it is not priced in now, next halving May 2020, but d efficient market hypodsis. E dey somehow. E suppose dey priced in, true true. In fact, I get strong belief for d efficient market hypodsis,  or las las na pipo wey no get inside information fit start from dre first, or specialized knowledge, or a big trading room available. D efficient market price na d correct price wey dey, you fit put your hope on am, and that one na true especially if markets dey really big and liquid and efficient, I think say na true for were Bitcoin dey if you reason am one way. E like an $80 billion market.

SLP67

Q3.

Stephan Livera:[...]“Wait o, you fit use d Stock-to-Flow analysis or modeling for altcoins?” [...]"

PlanB: Right, yes. That one na d question wey pipo dey always ask, whedr I sabi do a Stock-to-Flow model for Litecoin or B Cash or Edreum. Make we enter am small small. D tin with a Stock-to-Flow analysis be say e stand uptop unforgeable costliness. Make I try explain slow slow for pipo wey just start to dey listen today. Stock-to-flow na stock or d reserves or sometin wey be like Bitcoin 17 million, almost 18 million in stock, and if we divide by flow, so stock-to-flow, and flow na d protection. That one na about 0.7 million bitcoins per year as I dey follow you talk so. And if we come divide those two, wetin you go get na d number 25, and 25 na d stock-to-flow number for Bitcoin.

PlanB: And no be only number wey e be, wetin I mean be say I dey call am scarcity, a quantitative measure of scarcity in d article, but d main koko of stock-to-flow na d inability of production to inflate d stock. If d stock big well well and d dem restrict d production somehow somehow e be say d production and d producers come get power to inflate d stock. And we sabi d kind wahala person fit get wen some kind pipo or companies, or government get power to inflate stock. For example Zimbabwe na contri wey Mugabe get power to print, and e come print plenti of dir money anyhow anyhow, and d tin come scatter dir economy. Na d same tin happen with Maduro for Venezuela. And we fit still talk same tin from d dollar, and d Euro as we dey now with quantitative easing. Dem still dey print... Dem say make I nor talk say na printing, but dem dey do electronic dollars, and Euros, and Yens to take help banks, and d whole economies.

PlanB: So d inability of production to inflate d stock na wetin stock-to-flow really be to stop tin wey we see for countri monies for Zimbabwe and Venezuela, and currently in quantitative easing. So, if we come relate am to crypto, whether you like, then d tin like decentralization go come dey very importanta. If one persin, one kompani or a countri if decide to change d monetary policy, nor be decentralization be that. D producer, this persin or government, or kompani fit, e fit make plenty coins and inflate d stock.

PlanB: Make we take for example now, Ripple. D oga at d top for Ripple fit premine anodr hundred billion ripples if him like. And if you look Edreum, you go see say him no get cap on d supply of Edreum, but dem don change am. So, dem dy change d moni supply. Nor be so e be or so e go be, d moni supply, but d fact be say dem fit change am as e be so... Well, na this kind tin go dey worry me if I be an investor. And e dey totally different for where Bitcoin dey. Bitcoin, you get this correct peer-to-peer network with many nodes, and you fit to confirm d moni supply by yourself. You nor dey depend upon any odr person like bank or kompani, or a data center to yarn you how much wey d moni supply be.

PlanB: You nor fit change d moni supply or change that magic 21 million coins number, and if you do am you just dey hard-forking away from Bitcoin. And, yes, I fit guess say nobody go follow you. E be like Bitcoin Cash with the big blocks. Yes, but you fit do am, but nor expect say pipo go follow you. The last tin I go like talk be say for the theoretical side of stock-to-flow on Altcoins, moni go dey hard to produce, dear like gold. So plenti gold dey inside the oceans, and e get this article wey I read about d asteroid, the golden asteroid e neva too tey.
PlanB: E go dear well well to mine that gold comot from d ocean or asteriods, and na him make am no go fit happen, I guess. And na so for Bitcoin. E get a hash-based proof-of-work with a very high hash rate. So e dey chop plenti Nepa light to mine bitcoins, and e dey totally different for penti Altcoins of course. Make we do anodr example with Ripple again, Ripple nor get proof-of-work or Bitcoin Cash nor get hash rate, so security nor dey am. Again, that one fit make me fear small if I be investor, and pipo go like to know more about am, na Nick Szabo wey invent d word, and come describe d unforgeable costliness in wella. So make sure say you read am finish.

PlanB: For theoretical argument of unforgeable costliness, I decided a bit against my mind, but becos say e get plenty demand for d model Altcoin’s with stock-to-flow. I been wan se if e go dey possible to do am. And that one na one of d wahala wey dey d research wey I dey work on now with a team of quants. And I fit tell you small it about d result, and I talk am for twitter small too. All of dm get small R-squares, so d models no fit wella. For example, Litecoin dey very interesting becos d halving wey go soon happen. Litecoin get R-squared of 32%. That one na against Bitcoin 95%. 32 dey very small. Wetin e mean be say e nor get relationship at all. Na d same tin with Ethereum around 50% R-squared. Coins like DCR, Decred. I nor even sabi how to take call am, but 0% R-squared.

PlanB: So d theoretical argument of unforgeable costliness already dey make you think say e nor dey possible, but if you really do d work and make d stock-to-flow models d outcomes nor make sense. [...]

SLP86

A few SF graph for altcoins: E dey clear say no connection (and cointegration) dey with SF and value:

Q4.

Stephan Livera: Yes, na fascinating sometin. And this table wey you do, abi nor be so, so na only for d listeners, e dey show d year, d halving, and d model predicted price. So as you talk 50,000, 400,000, and dn 3.2 million for d 2028 halving. Now, to d extent say d stock-to-flow modeling dey work, so again d warning, nor be economic law, it’s some sort of modeling, but to d extent say d modelling dey work. I wan ask whether you get any reflections on how many cycles we fit expect this working for?  

A4.

PlanB: Yes, dem still dey talk this tin for Twitter, plenti questions dey about exactly d infinite value if you like. If you follow the table, we fit follow am reach 2140 when d flow don dey zero, when dem nor go get any new bitcoins again, and only fees. And the theoretical value how to Stock-to-Flow model go dey infinite. So how e go take happen? See eh, this think na just theoretical argument. And me na a very realistic person. So if I look the next three halvings alone. So we dey, about 100, $200 billion market. Every halving the market dey go 10X. So after 202, we go dey go one trillion, after '24 we go go 10 trillion. And after '28, so the third halving we go go 100 trillion US dollars, na him make me use d name for my Twitter.

PlanB: Wetin I think be say we nor need to wait till 2140 before d model break or before something breaks. Wetin I think be say we go reach there even before we sabi am. I think say we go dey there , maybe 24. Somewhere between 24 and 2028 because 10 to $100 trillion Bitcoin market that one big well well if you compare am to US moni for example. E get a monetary base of three trillion, and I think say na an M2 of about 12 or 14 trillion. Wetin e mean be say between 2024 and 2028, bitcoin big pass US moni. E means say US moni go kpeme, and na Bitcoin we go dey use take measure tins.

Stephan Livera: Very bullish.

SLP86

Here the image detailing wetin dem dey talk about:


Twitter link

Wen Satoshi choose 21 millions as d total cap to BTC supply made some pipo try to assume d total moni supply, and den figure out say is this limit dey equal by Bitcoin, e mean say one satoshi, wey be d smallest unit of bitcoin, go almost be d same as a single cent, Dis one na d smallest  amount of account wey dey possible. Dis backwardly come mean say one bitcoin go be like one million. (Hal Finney was involved into this choice). For Bitcoin to big pass dis limit we go need d US moni to lose value: wey be say if e pass one kind level e nor fit make bitcoin go up, na d US moni go come lose him value. When bitcoin reach 3,200,000 USD dat time a liter of milk fit dey at 50 USD: we go dey measure d prices with small small measurement.

Stock-to-Flow model independent review:

• Quantifying Uncertainty In The Bitcoin Stock-to-Flow Model
  

  D linear regression of the log of d values make sense but d uncertainty (variability / error) too big, especially if we carry back to a linear scale, e go dey hard to make useful specific predictions. Den again, dat one na still correct information.
  

  
  
  
• Falsifying Stock-to-Flow As a Model of Bitcoin Value
  
  

  Dis article ben dey look whether stock-to-flow relate to Bitcoin value. Dem test d proposed log-log model for statistical validity against d least squares assumptions, for stationarity in each variable and for potential spurious relationships. A Vector Error Correction Model (VECM) is built and dem test am against d original stock-to-flow model. While some of these models overtake d original model in for tins like Akaike Information Criteria, all of dem fail to reject d hypothesis say stock-to-flow dey importanta for non-spurious predictor for d value of Bitcoin.
  

Podcasts where PlanB talk about him article:

• What Bitcoin Did: Plan₿ on Bitcoin’s Stock-to-Flow
• Stephan Livera Podcast #86 PlanB – Frontrunning the Bitcoin Halvening?
• Stephan Livera Podcast #67 PlanB – Modelling Bitcoin digital scarcity through Stock-to-flow Techniques

Stock-to-Flow appearances for another area:

• State-Backed German Bank Says Bitcoin Will Leap to $90,000 in 2020
  
  

  D German bank BayernLB has write one tori on Bitcoin (BTC) versus gold, for d tori dem predicts a big leap for the cryptocurrency in 2020.
  Bitcoin outshining gold?
  On Oct. 1 d Munich-based, state-owned bank published him latest research report wey talk say d forthcoming Bitcoin halving effect never still enter d current price of about $8,300.
  
  The financial institution talk say gold go need earn its high stock-to-flow ratio “d hard way over d course of millennia.” Bitcoin on d other hand fit to overcome to get d same stock-to-flow ratio like gold in d coming year, na wetin d report predicts.

  
  D link wey go take you straight to d research paper:
    Is Bitcoin outshining gold?
  
  

Dis post go dey 4 my project:

Help me re-wrty my best posts 4 inside ur Local Board

I b strong believer 4 d join bodi 2geda of local boards.
I get luck well well say, I sabi open mouth 2 talk watin dey my mind 4 at least som kind language dem bt I knw say no b so e be 4 evry persn.
Plenty pple way dey d forum dey post onli 4 dere local boards bcus say, e get watin dey hold dem nd e ft b language, watin dem beliv in way no allow dem, netwrk no dey abi e get orda reasons.
As I dey like dis, I sabi plenty pple way dey use d forum wella (frm d Italian side dem, via som kind reason way no ft hide) way no dey post 4 where evry body 4 d world dey talk.

I believ say, all dose users dem way no dey talk 4 where evry bodi 4 d world dey talk 4 (English) or 4 orda boards so, dem dey miss wella.

If u tink say u ft help 4 here, u fit go see dis topic!

[Hyphen(-)]

Translated Topic in Pidgin Language:- Anythin u wan know about BTC option bt u de fear to ask

Original Topic:- Everything you wanted to know about BTC options but were afraid to ask!

Authur:fillippone


Option 4 bitcoin don de accessible only to whales and som khyn exchanges as Deribiit , bt wen Bakkt nd CME wey b d two main traditional bitcoin exchanges go open d product to dir clients option trading 4 bitcoin go becum widely accessible.
Actually option trading don de available 4 Bakkt since December 9th, while CME go launch product wey de simila leta dis month, and dem go start d trading 4 January 13th.

Options na instruent wey de hard to trade. Dis wan de sure 4 traditional bt e even too de sure 4 wild market like bitcoin.

Wit dis thread i go giv some som khin little theoretical nd practical ways (hints) on how u go tek understand and use options.
I go start de brief wetin option b, explain all d characteristics wey option get and wetin dem mean to investors.
Den i go explain well how we go tek price dem. I no go explain d main mathematical model wey dem use price d optons, becus e go cary us go advance differential calculus wey nobody wan hear. wetin i go use to convey d khin factors wey get impact on option price and we go tek interpreat dem. I go also try clear rod 4 som common misconceptons we de about opton.
 
4 d end i go explain som common strategies wey de opton trading. E no go too de complicated, na just small eamples on how we go tek use dem 4
mata wey concern investment: weda speculation or hedging. 




INDEX

• Introduction
• Wetin b option
  
  • Strike
  • Time to expiry
  • Volatility
  • Example
• How we go tek price option
• Historical Volatility togeda wit Implied Volatility
• Option strategies - How we go tek use option
  
  • Leverage Trading
  • Covered call writing
  • Collar
• Word wey matta
• Resources wey get use:
  
  • Online Calculators:
  • Exchanges product informations:
  • Online courses:

Wetin be option

Option na contract wey go give person way dy hold the pawa, bt not d obligation to buy or sell asset, wey dy call the Underlying asset, b4 d time way the contract go expires.
D option wey dy give person way the hold the pawa to buy the asset wey dem keep(underlying) na Im b call Option.

D option wey giv person wey hold the pawa to sell d underlying asset na im b put option.
D price wey dm use do the trading na im b strike price.
wen option generate trade we go talk say it is "exercised", bt if e jst end wey dem no trade anything we talk say e dy "abandoned"

If option fit de exercised only wey e wan end (termination) na dat one b European Option,
While d option way fit dy exercised anytime before e reach time wey e go end(Termination) dat one na im be American Option.
The moni way buyer of option pay seller or person wey b writer of option, na dat one b the premium.

If price for market pas d strike price, d called option dy call "in-the-money", because say for American exercise, e fit exercised with gain.
If not, dem go call d call option "out-of-the-money".

If d price 4 market they below d strike price 4 d put option, d put option go b "in-the-money", because say 4 American exercise
e fit exercised with gain. If not, dem go call d put option "out-of-the-money".

If we look a certain strike, na only call option or put option fit be in-the-money, no be all of dem. Example if we look 10,000 strike option, d call option dy out-of-the-money, but the puts option dy in-the-money.

As e dy expire, if the option fit make d underlying asset weting dem been price am na im be "physical delivery ". Many commodity 4 financial options dy physically settled. Alternatively, option fit control only the moni wey dy d same with d gain exercising the option it self: dat expiry then an in-the-money option go deliver money wey de the same with the difference way they for asset price and strike (4 call option case )  or the difference wey de for strike price and the asset (for put option case). For dis mata, them they call d option na cash-settled.

4 d case of Bitcoin option wey b Bakkt option on BTC futures, the option de physically settled: wen d expiry of d option in-the-money option generate a better position in d underlying future. e get only a trick: as e de common for plenty commodity options, d option Im self expires few days before d future, so d holder of d in-the-money options get possibility to close d future position b4 d main delivery of d underlying of future (the option get future as underlying, d future get Bitcoin as underlying). Na y you fit hear some marketing nonsense wey "Bakkt options go allow u chose d type delivery :" monei or face to face".
 
B4 we analys am mathematically how 2 price option, make we see the impact 4 pricing wit d intuition.

STRIKE: D first element na strike.  E Sure, d different wey de between market price and strike na d first hint at d value for option. Intuitively d more d option dy in-the-money, d more dat option go get value.


STRIKE: D first element na strike.  E Sure, d different wey de between market price and strike na d first hint at d value for option. Intuitively d more d option de in-the-money, d more dat option go get value.

Wen option de in-the-money, dat option get a calculated value(intrinsic). 4 call and put options, the calculated value dy d same wit d different bitwn d underlying price and the strike price: intrinsic value de only measure d gain wey determined by d diffence bitwn d option's strike and d markets price.
Wen option de out-of-the-money instead, d calculated value na zero.
D intrinsic value na d minimum value of d option: if d value of d option go de below d intrinsic value, e fit be arbitrage, buying that option and changing it to gain. So wen BTC de trade for 7,000, a call wit strike K = 5,000 is in-the-money and get intrinsic value of 2,000, so d price go de biger dan dat. Na so a call wit a strike K= 10,000 get no intrinsic value I.e the value na zero. E sure, intrinsic value na only a part of price an option: oda variables de impact d pricing of option, any one of dem de add value to d intrinsic value to get d final value 4 the option:

TIME TO EXPIRY:D second element wey de important to price option na d time wey e go take expire: d longer e go take to expire, d costly d option. If we price two option wit d same characteristics, wit different date to expiry, d one way get long expiry date go get biger money.



VOLATILITY: As d volatility of d underlying asset big, naso d value of d option go big too. 4 here d explanation go de tricky small. Make we talk say d main reason no be how big d volatility of 4 underlying be, na how big d volatility fit dy be wey dy go inside d money. We go see later why dis wan dey important, just put am for mind say e no go too show. The option wey de buy no dey get anything 4rm d option wey dey go inside d money. Rather no give gain, if na only option de go inside d money. The person wey buy d option go enjoy because say d underlying asset don move (i.e he go de change) for risk wey de come neutrally, i.e make you no take d risk of gaining because the option dy enter inside d money.


Make we see one example:
If we buy call option wey be BTCUSD, wey get strike price of 8,000 USD, wey de expire for June 2020.
Dis strategy name na Long call because to buy something na him dem dey call being “long” for finance jargon.
D premium 4 dis option own na 1,350 USD, we go pay immediately (“upfront”, again for finance region).

Mek we go forward sharpaly to option wey dey expire.
The outcome for our option go follow d final price wey bitcoin be:

If BTCUSD de unda 8,000 USD d option go dey abandoned, e don expire without use be dat.
If BTCUSD de above 8,000 USD d option go still de, and e go generate payoff wey de d same wit d difference (positive) wey de between BTCUSD and d strike price.


4 more formal terms d call option payoff go be dis tins:

Call=max(0;Spot-Strike)

D last payoff 4 d strategy go be dis tings:
 



know say d dis graph reason say we pay a premium of 1,350 USD before time, we must pay d premium 4 all scenarios: if d option expires witout, d P&L (profit and loss) 4 d strategy de negative and d same to d premium wey we pay, if not e go de eqaul to d option payoff netted with premium paid.
know say d gain and loss go start to de increase for strike price level, 8,000USD for dis case, but e go break even if na for high level wey de dsame wit d strike + d premium u pay, or 9,350USD fir dis example.  

Mek we see d same tin for put option.
We buy put option for BTCUSD 4 6,000 USD strike price, wey de expire June 2020.
Dat strategy na  long put. 
D premium 4 d option na 732 USD, we suppose pay am keep "upfront".

Mek we go forward sharpaly to option wey dey expire.
D result 4 d option de change according to d Bitcoin price:

If BTCUSD pass 6,000 USD d option go de abandoned, e go expire without any value.
If BTCUSD de below 6,000 USD d option go de exercised and go provide a payoff d same wit to positive difference wey de between d price of BTCUSD and strike price.



4 more formal terms d put option payoff go b dis tins:

Put=max(0;Strike-Spot)

D final payoff 4 d strategy go b the dis tins:



D graph look familiar, as e be d symmetrical payoff pas d call.
Mek we know say dis graph dy reason am say make we pay premium of 732 USD keep, to pay d premium na must for all case: wen option expire witout value, d gain and loss of d strategy de d same and negative to d premium way we pay, if not e go de equal to payoff option wey we put for d premium way we pay.
Know say d gain and d loss go start to rise for strike price level 6,000 USD 4 dis one, but e go breaks even 4 lower level wey de d same with d strike - d premium wey we pay or 5,267 USD for dis example.
 

Make we take eye see option exchange to look 4 confirmations.
All d examples na from Deribit, who be d only big source wey de available for option prices: to create account de easy and e no de need KYC. If you like am do am for educational reason. E sure say some issues de, and I no 4 any way de linked wit d exhange.


If we cary BTC options, and Jun 26 2020 we go see a screen wey look like dis tins:


(click on the image to enlarge it)


Dis particular page de reason d options wey go mature 4 26 Jun 2020.
D middle grey colum de represents d strike level. D options wey de d same row get d same strike price.
4 d of column left side, we get d call option for each strike, and d right-hand side carry d puts option.
D bid price na d price wey oda participants wan buy d option, i.e. Price wey u suppose sell am if u wan sell.
D ask price na d price wey oda participants wan sell d option, I.e. d price way u go pay if u wan buy am.
Each bid and ask price get a corresponding Implied Volatility level, wey b d volatility level dat, if we put dem 4 d model, e go give us back the aforementioned price.

Na y if u dy talk about option, volatility and price na d tins wey be d exchangeable concepts.

As we don see pass, we se say d calls get price wey dy drop wen strike dy go up: 6,000 call get mid-price (d average wey de between d bid and Ask) for 0.20725 BTC, while 10,000 call get a mid-price of 0.11275 BTC.
D opposite na im sure for put. D puts wey get lower strike get lower premiums.
D put stuck for 10,000 get price of 0.46075 BTC, and d 6,000 put get mid-price of 0.09725 BTC.
Again, we see say if we check d options wey get plenty time b4 dem expire, each of dem get bigger value: d 10,000 USD  strike call wey go muture 4 September get value of 0.16775 BTC versus d value of 0.11275 BTC 4 d same option wey de mature June. D 6,000 strike put get a value of 0.09725 for d same option we de mature June

If we put data wey we find 4 dat page in option calculator, we fit price d option itself again.
If we try reprice d 8,000 USD call, putting 0% for interest rate (BTC na paying asset wey dem no fit divide) d correct info about strike, underlying and implied volatility, we go get almost d same valuation we get for Deribit:  




D plenty numba under d option price na d "greeks" or d toughness of d price of d option to d oda components:

DELTA: na d sensitivity of d option price to d underlying: If d underlying go up wit 1 USD, option price self go go up with 0.55 USD.

GAMMA: na d second-order sensitivity 4 price option to d underlying: if d underlying go up with 1 USD, d option delta go up 0% (I de reason say some rounding factors wey we suppose consider de dis calculator)
The numbers below the option price are the "greeks" or the  sensitivities of the option price to their various component:
VEGA: na d sensitivity for option price to d volatility level: if d volatility go up 1%, d option price go go up 20.54 USD.
THETA: na d sensitivity of option price to d time: if 1 day pass, d option price go drop down by 4.39 USD.
RHO: na d sensitivity for option price to d interest rate: if d interest rate move go 1%, d option price go move go 13.49 USD.

D greeks for option de link to each oda for one hard way, ways chok wey we fit interpret dm and de go de change as d level of market de change, d volatility and d time 4 maturity.
Dem don write books wey de show how to change and Dem d wey e go good 4 u. I sure say dis small explanation don de OK for dis thread.
 
How u go tek price option


To understand d details of how options price dey b, e go mean say u go understand advanced mathematics, even stochastic calculus, differential calculus, statistics etc.

For here I go give u small important concepts, u go keep am for mind if you dey think of options and wetin their value b.

Black&Scholes na dem win d price for their option pricing model. Their achievement wey big pass na to demonstrate if e dey possible to price option wey dey use non-arbitrage conditions. Arbitrage na trade wey profit wey de gain de involve no risk and e no get capital. Naso he dey be, dos trades no dey exist, dem markets go follow adapt to avoid these situations. Reasoning wey de under d “non-arbitrage” conditions, mean say risk no de inside, hence d individual appetite wey de risk 4 each different trader for d market fit de comot for d equation. E mean say every trader for d market go reason using d same “language” of world wey no get risk (if we reason with no-arbitrage conditions, we fit ignore d associate risk, den we fit ignore wetin wan make every trader carry dat risk). E mean say d risk of dis kind derivative dey unique, irrespective for d risk appetite for each trader.
Dis wan get d important consequence wey d price for option dey INDEPENDENT of d probability wey de give each trader about d possibility for d underlying ending wey de inside d monei. Dis wan na something wey we go put for mind: D price wey option get no mean say automatically say d scenario where e end inside d money dey more “plausible”. 

Historical Volatility togeda wit Implied Volatility

As we don se say d only "difficult" to option price na d volatility wey we go use.
D correct numba wey go fit in d pricer na d expected future realised volatility until d option go expire.


Quoting dis numba mean say quoting d price of option  (being d oda option pricing numba deterministic, i.e. dem no am witout uncertainty).
D level of volatility wey dem use to price option na im be implied Volatility because say na d level of volatility "implied" by quoted price.
How u go tek quote d future volatility?
Here na d trick 4 option trading.

D first idea na to look d realised volatility: if u look d past, u go get d first guidance to d future volatility. E sure, e no de always b true as many factors fit change d volatility 4 future. One easy example, we de specific to Bitcoin option fit b halving. Dis even fit get better impact to Bitcoin price according to many people model.  So we fit guess say if halving de come d volatility go low: Bitcoin fit move, without big variations, bt once d halving sup, d price fit begin de move wela, due to d different valuation d S2F model implies. For dis case d realised volatility no go b good guidance for d future volatility:
D realised volatility go d lower dan d future volatility used to price options wit d expires after d halving.

Plenty websites don calculate d realised volatility 4 Bitcoin: on Deribit u fit get one.


Calculating historical volatility wit different horizons go giv very different results:



For d graph wey dy up, we go see Bitcoin price (black line, left axis), with superimposition for different volatility calculations as dem use different terms (yellow, red and blue lines, right axis).  Volatility 4 short term fit de more"volatile" imself (yes, volatility of volatility de, bt na for advance options trading). D line wey b yellow de represents d annualised historical volatility wey dem don calculate using d b4 10 trading days, and we see say d graph de swing more volatility, wey from 180% drop down 20%. Volatility wey dm calculate for mor extended time, lik d blue line (calculated 4 lik 30days of data) or d red line (calculated 4 d last 180 days of data) is instead mor nd mor stable as d interval for d calculations.
4 sure, we de mor interested 4 matching, wit d caveat wey we explain b4, d historical volatility computation wit time wey d option wan expire we wan to price.


D implied volatility fit b instead observed 4 option markets. If we see d option screen 4 up we go see some IV columns: dat is d implied volatility wey correspond to to each quote. If we use d model for opposite way, we fit use d price as input and find d volatility implied into d price: wey b d implied volatility.


Option strategies - How we go tek use option


Options ar instruments wey de very complex, here I wan show some small use of dem.
Dis one na d easy ones, and all of dem de common to b "static" strategies. Dis means say we go put dos once in place, and we no go touch dem till dem mature. Different strategies de wey we fit adjust during d life of d option. Dis ones na totally different animals and dem de call dm dynamic strategies.

Leverage Trading


Scenario:
U wan gain as much as possible exposure to Bitcoin.
u get clear treading view.
U no wan lose ur capital if dis no materialise.
Strategy:
Use ur own moni to pay d premium 4 option wey de out of d moni, choosing d strike to maximize d final expected payout.
 

Example:
- Buy 1 call option strike 7,000 USD, e go expire 4 Jun at 0.233 BTC.
alternatively
- Buy 1 call option strike 8,000 USD, e go expire 4 jun 4 a total of 0.1805  BTC.
 


Analysis:
4 dis scenario u don get eposure wey u go take appreciate if bitcoin don pass strike price level usin a pat of capital wey de require to buy unerlying (i.e 1 bitcoin).
4 d case wey bitcoin de 10,000 as e wan expire, 4 d case a bitcoin investment, u go get return wey d same to (10,000-8,000)/8,000=25%.
Dis one na base case scenario 4 no leverage.
if we buy in-the-money call option d return go b instead (10,000-7,000-1,742)/1,742=72%.
mek we no se if d option go further in d moni d retun go go up futher too as d option pay na constant,while de gain go increase linearly.
4 d second eample, we buy option wey de out of d moni wit less capital.
4 d case wey bitcoin de 10,000 as e wan expire, d yield go b in dis case (10,000-8,000-1,350)/1,350=48%.

4 sure dis scenario wey b oposite movement, ur loss de limited to d premium paid, wey go be completly loss.
Of course in the scenario of an opposite movement, your loss is limited to the premium paid, which would be lost entirely.
Dis sow se u go chose wisely no b only d strike level, to get beta level of exposure, bt also d expiry, as movement don materialise b4 d option go expire.
 
Covered call writing
Scenario:
U b whale u wan sell som pat of bitcoin wey u hold to use 4 ur daily needs. U de bullish on bitcoin as investment.
Strategy:
Sell out-of-d-moni calls, mek cash in d premium to finance ur epenses, me u actually sell bitcoin only as d pice go ip (possibly 4 a spike).

Example:
- long 1 bitcoin,
- sell 1 option strike 10,000 USD, Jun Expiry at 0.11 bitcoin.



Analysis:

The payoff of d structure go giv u benefit pass d simple holding of bitcoin wey de d same to premium if d price go down d strie price at maturity.
If at expiry d price pass d strike, d option de go in-d-moni and u sell d bitcoin.
D strategy get a break-even, pass to being long d BTC only, at a level wey de d same to strike + premium received (in this example at 10,000+0.11*7,478=10,826 roughly).
If d BTC muv further up, u cum basically sell a bitcoin at 10,826, hence d strategy get a lower vale against holding d bitcoin.

Collar
Scenario:
U b whale
U wan sell som pat of bitcoin wey u hold to use 4 ur daily needs.
U de bullish on bitcoin as investment.
U de pissed off in case of violent drawdown 4 bitcoin prices.

Strategy:
Sell out-of-d-moni calls, mek cash in d premium to finance ur epenses, me u actually sell bitcoin only as d pice go ip (possibly 4 a spike).
Use cashed-in premium to buy protection 4 d downside, i.e mek u buy put option.
To de buy out-of-the-money call and de sell out-of-the-money put na strategy we dem de call "Collar".

Example:
- long 1 bitcoin,
- sell 1 call option, strike 10,000 USD, Jun Expiry at 0.11 BTC,
- buy 1 put option, strike  6,000 USD, Jun Expiry for 0.098 BTC.



Analysis:

The final playoff de similar wit d one wey dey covered call writing.
The payoff 4 d structure go give you benefit on top d simple holding of bitcoin wey equal to d difference inside d premium wey dem pay to buy d out and d premium wey de cashed in to use sell d call. For this kayn case, i chose 2 strike level to get d smallest positive difference wey dey between the twos. If d price de below d strike price for maturity. If for expiry d price de above d strike, d option go de inside the money and you fit sell your bitcoin.
D strategy get break-even, if he dy compared to being long underlying, for level wey dey equal to strike+premium wey dy received (for dis example wey be 10,000+(0.11-0.098)*7478=10,093 roughly).
If BTC go up pass before, you don basically sell bitcoin for 10,093.
4 d contrary say BTC go down, u also buy protection at 6,000, as you don long 6,000 put. More precisely, d way you take cash out 4 premium wey b 93 dollars, you de protected for USD wey be 6,093 USD. 4 case wey bitcoin go down pass before, you no go dey affected, as d payoff of d put go protect u 4 d downside.




Word wey matter.
Option topics get as e dey b.
I try my best say I de explain dis topic for d simplest way and d way wey de go grab.
I fit expand d thread d way u go take sabi am. Just tell me wetin u dey interested pass 4 d topic, or make u ask me make I clarify you more 4 d point wey you wan know more about.



If u tink say dis thread or any oda of my threads de wey dem suppose translate go ur own local board, please mak u provide help!

Resources we get use:
Online Calculators:
Option Calculator

Exchanges product information:
Option on Bakkt ™ Bitcoin (USD) Monthly Futures
Options 4 Bitcoin Futures

Online courses:
Basic: CME Option Course
Advanced: Theory 4 professional options trading

Dis post de eligible 4 my project:

Help me translate my best posts 4 ur Local Board

Me na strong believer 4 local boards mata.
I de lucky enough as i don epress myself 4 at least some languages, bt i know say dis one no be d case 4 everone.
Plenty users de wey b say na oly local board dem de post because of som reasons wey fit be language or culture barriers, and some na lack of interest or some oda reasons
Me personally know plenty users wey good (4 d italian section mainly 4 som reasons) whu no de post 4 international sections.
I think  say all dos users de miss plenty good content wey dem post 4 international (English) section or oda boards.

If u tink say u fit help here, just  come see our thread!

[Davidvictorson]

Translated Topic in Pidgin Language; Everythin wey you wan be know about Grayscale BTC Trust but fear no gree you ask am!
Original Topic: Everything you wanted to know about Grayscale BTC Trust but were afraid to ask!
Author: fillippone

Since dem publish PlanB articles, d Bitcoin value proposition don get confirmation sake of say na correct model, wey dem use serious maths talk say "Bitcoin dey valuable because say e dey scarce".

Na him make Bitcoin Investment dey ok for some kind pipo, wey dey ready to carri d court, regulatory and fiscal mata for head to mak sure say bitcoin get exposure. Oda pipo go follow, but those pipo wey carri d matter for head first na dem collect beta shares and profits as no competition been dey d market.

D one wey dem don talk about wella among dis funds na Grayscale.
D plenti bitcoin wey dem buy don mak pipo for d community dey look their side. Becos e be like sign say big big companies don dey accept am, or na wetin dem use tak measure how scarce wey bitcoin dey wen dem measure am against mined bitcoin.

Wetin I tink be say dem don too simplify plenti of d concepts about dis fund, and some of d technical details of how e dey take operate fit mak pipo sabi how d fund dey work, how big compani investors dey use am, whether na "fiat investors" or whales, and small small investors.

Sake of say dem don too talk about Grayscale news, some beta reports, and dem don do correct thread for d Italian board, I decide say I go follow d thread wey don talk about d main aspects, I go go thru some of d correct details, I go also try yarn about wetin I don learn as I dey talk.

As I dey on top of dis article I go dey look dis this spreadsheet, na there you go fit see mani of d calculations wey I do. You fit open am and play wit am.

I throwway salute to my fellow Italian members wey don shook mouth inside d mata Grayscale thread by Plutosky for their local board.
Table of Contents

• Grayscale Company Profile and Faq
• Primary Market
• Secondary Market
• Arbitrage
• In-Kind Buying
• Hedging Strategies
• Conclusions

1. Grayscale Company Profile and Faq

For Grayscale Website we fit get beta tori wey concern d whole compani and organization:

Grayscale Investments, LLC (“Grayscale”) na d largest digital currency asset managa. Wit approximately $3.3B AUM,* Grayscale dey provide opportunities for him investors to collect beta exposure to d digital currency asset class.
Grayscale na d sponsor of Grayscale Bitcoin Trust (BTC), Grayscale Bitcoin Cash Trust (BCH), Grayscale Ethereum Trust (ETH), Grayscale Ethereum Classic Trust (ETC), Grayscale Horizen Trust (ZEN), Grayscale Litecoin Trust (LTC), Grayscale Stellar Lumens Trust (XLM), Grayscale XRP Trust (XRP) and Grayscale Zcash Trust (ZEC), and d managa of Grayscale Digital Large Cap Fund LLC. Both d trusts and d fund dem dey call dem “Products”. Any Product wey dey give share creations dem go call am “Offered Product”. Grayscale Digital Large Cap Fund currently nor be Offered Product.

Grayscale LLC  dey manage plenti Trusts, wey resemble each other, and dem get d same format for operation.

D Products na privately offered investment vehicles wey dey available to institutional and confam individual investors for their different private placements. Grayscale’s single-asset Products dey provide exposure to Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Ethereum Classic (ETC), Horizen (ZEN), Litecoin (LTC), Stellar Lumens (XLM), XRP, and Zcash (ZEC). Grayscale’s diversified Product, Grayscale Digital Large Cap Fund, dey provide exposure to d top liquid digital assets by market capitalization and e currently get BTC, ETH, XRP, LTC, and BCH. D Grayscale Digital Large Cap Fund private placement dey also offered on a periodic basis to correct investors* only but e dey closed now.

Each Product’s investment objective na for d value of d shares (based on digital assets per share) to show how d price of the Product’s underlying digital asset(s), less fees and expenses dey perform. Dem do am afta popular commodity investment products, dem create each Product for investors wey dey find exposure to digital assets through a traditional investment vehicle.

Those products wey be privately offered investments, dey available to investors thru private placements.
D objective of each fund na to passively check d performance of d underlying wey dem use am join bodi. So Grayscale nor dey look for addition yield for thru active management, investments or oda revenue sources. Dem be just passive investors.
D Trusts dey open-ended, and dem dey different from d majority of publicly traded futures wey dey any exchange, wey get expiry date, and dey request say make d investor cari him position to other contracts(e get some "Perpetual futures, but where dem cover too dey small)

Additionally, Grayscale Bitcoin Trust (OTCQX: GBTC), Grayscale Ethereum Trust, (OTCQX: ETHE), Grayscale Ethereum Classic Trust (OTCQX: ETCG), and Grayscale Digital Large Cap Fund (OTCQX: GDLC) dey publicly-quoted for d OTCQX® Best Market, wey be numba one by d OTC Markets Group and e dey available to all individual and institutional investors.

Some of those investments wey dey private also dey publicly-quoted for d public market.

Except for Grayscale Bitcoin Trust, wey trun to SEC reporting company for January 21, 2020, d Products nor dey registered wit d U.S. Securities and Exchange Commission (d “SEC”) and dem nor fit subject am to disclosure and certain oda requirements wey d U.S. securities laws talk say dem suppose do.

D biggest fund na d Grayscale Bitcoin Trust (BTC), wey dey small pass 90% of the total AUM of Single assets funds.
GBTC na d only fund wey dem register with d SEC, so na only him on respect all the rules wey the public agency been talk.



D smallest investment threshold and d management fees na him represent correct informate.

The smallest threshold for $ 25,000 ($50,000 for GBTC) come mean say those product nor mak sense for small small investors, e give d Sponsors a series of disclosure to take protect most of d investors wey never sabi wella.

Dem dey comot d management fee from d theoretical price on a daily accrual basis to tak cover for d annual administration and safekeeping fees.

All these funds get some common regulatory characteristics:



Most notable ones na d Index Provider wey be Tradeblock and Coinbase custodian.
Wetin e mean be say all d calculation dey for d back of Tradeblock price computations (I go give more update on this matter later) and say d assets det for cold wallet for Coinbase.

On a side we sabi say Grayscale na part of a group:

Grayscale na subsidiary of Digital Currency Group, Inc. (“DCG”). DCG put hand for mani digital currency ventures in addition to Grayscale. CoinDesk, wey be d leading digital media, events and information services company for d digital asset and blockchain technology community, na also a subsidiary of DCG. CoinDesk dey editorially independent from DCG and Grayscale, and any views or opinions wey CoinDesk talk nor be d views or opinions of Grayscale.

So, CoinDesk dey independent from Grayscale, but dem na d same family.

2. Primary Market

Mak we look d BTC trust fact sheet.



E dey clear say d private trust naim get d right to give shares for d primary market afta dem don follow the correct procedure to Accredited Investors (AI), wey be d only subject wey dem allow to put moni inside d Trust.


Wetin be d requisites to be an AI?

• Any normal human being wey him income big pass $200,000 for each of him two most recent years or joint income wit him partner wey big pass $300,000 for each of those years and wey dey expect dey to dey d same income level in the current year;

or

• Any normal human being wey him net worth, or joint net worth wit him partner, big pass $1,000,000 (minus d value of d place wey d person dey stay or if him dey owe moni for the place wey him dey stay).

Of course banks, partnerships, corporations, nonprofits and trusts (with wey get moni pass $ 5 millions) dem be Accredited Investors.
D procedure to give new shares dey very simple.

Every day at 4:00 PM d VWAP, a Volume Weighted Averaged Price, of d XBX Index (a volume weighted average of bitcoin on different exchanges) dey calculated. Dis one follow for d benchmark index of d fund.

Notably, na only once dem dey calculate d official NAV for Bitcoin Investment Trust (on business days at 4pm) by Grayscale, dem dey use d weighted average of d XBX Index over d preceding 24-hour period.

Dem go later divide d funds by d price to tak check d equivalent amount for BTC. Dem go still divide dis amount by d per-Share Digital Asset Holdings to tak calculate d actual numba of Shares.
For d attached spreadsheet I do show una d live calculations:



D Bitcoin per shares amount na numba wey dey reduce everyday to show d accruing of d yearly 2% fee.
I don show you d example of d calculation for d spreadsheet.
Wetin dis one mean be say each share dey control each day less and less bitcoin, d portion of bitcoins wey no dey "controlled" by d shares na d payment for GBTC.

For here you fit still calculate d NAV.
If you times d official Benchmark Price and d Bitcoin per Shares, wetin you go get na the NAV of each share:

As dem talk am for Grayscale Website:


So, as each share get a "bitcoin per share" equivalent, d NAV na d US moni equivalent for dis measure.

As for SEC regulations, you nor fit just transfer d shares like dat. We read am for their termsheet, na their we tak discover am:

Eligible for resale dey accordin to Rule 144 for d Securities Act afta a one-year holdin period. Pursuant to Rule 144, once d Product done dey subject to d reportin requirements of Section 13 for d Exchange Act for a period of 90 days, d minimum holdin period go come dey short from one year to six months. We nor fit give you assurance say secondary market go develop.

So d subscriber of dat kind shares go expose herself for 6 months wey be d holdin window.
For d end of dis window period she go dey free to tak sell d shares for d open market. As long as say she get, becos Grayscale nor go fit get hand for am.

Also, Grayscale nor go fit collect d shares back, becos say buyback agreement nor dey sure.

Grayscale Bitcoin Trust persently nor dey do any redemption program and e fit stop creations from time to time. Assurance nor dey say d value of d shares fit dey approximate to d value of d Bitcoin wey dey d Trust and d shares fit trade at a substantial premium over or discount to d value of d Trust's Bitcoin. D Trust fit, but e nor dey compulsory to, seek regulatory approval to run a redemption program.

So, wen you put moni for Grayscale shares,, you don lock into dat, and d only way to take comot an for d secondary market, afta like minimum of six months.

I write one post on d thread about d restricted shares. You fit see am here here
3. Secondary Market
As dem talk for Grayscale website, eligible shares of Grayscale Bitcoin Trust dey quoted for OTCQX® under d symbol: GBTC, e make am dey possible to buy or sell shares continuously thru d tradin day at prices wey d market don set.

	Some information dey old (market Shares). Dem tak dis picture before d market open, na im mak some information nor dey (volume, range, etc.).

D market nor get any relationship wit Grayscale, and e dey rum independently. Dem nor get any market making obligations at all at all, so d price fit dey go up dey come down as e like accordin to bid-offer pressures.

Dis one na d graph of d last 12 months, wit volumes.



Na an average of 4.75 millions of shares wey dem dey trade every day, e dey equivalent to more or less 4,500BTC.

4. Arbitrage

We don see from d oda sections say NAV and Quote prices get big difference.


If you buy a quote of GBTC for d secondary market u dey actually but bitcoin for 20% premium, or you dey pay high pass 11,350 USD per BTC.

Make e nor shock you, e follow for wetin dey GBTC.

	Premium is dey close to historical minimum level, but e don big pass 100% for some kind times like that.

If you buy a quote of GBTC u dey actually but bitcoin for 20% premium.

Why e be so?

Well, d first reason be say you nor fit buy GBTC shares for d primary market.
Back den to give shares don close for some kind times like dat. And as e be  it nor always dey possible to buy shares for d primary market, na dis one make d demand for quotes dey high for d secondary market wey make d prices and d premium dey go up up.

Secondly, mani of d big men investors nor fit trade restricted financial instruments. So dem nor fit buy GBTC shares becos dem nor fit carry am do trade as dem like for d first six months and e nor get any buyin agreement wit d issuer.

Lastly, e get plenti investors wey go like buy bitcoins, but dem nor fit do am. So wetin dem dey do na to buy quotes wit premium so dat dem fit get an object wey dem fit carri trade for a regulated exchange, wit correct fiscal, regulatory and legal benefit. You fit reason am like say na family office wey dem don tell to sell only listed products. Dis one mean say physical bitcoins don comot for d matter, obliging d moni managa to divert to GBTC so dat e fit get exposure to bitcoins.

Na dis market frictions dey give premium of secondary market quotes mind for where NAV of  trust dey.

Dis premium nor dey stable for d past, but contrary to wetin people believe e nor get any relationship wit "market sentiment" so I dey guess say na outside public information dey push am, and e dey related to offering policies:

	Correlation wit price level is nor dey exist, and na even negative.	Na very weak correlation also wit "market sentiment" wey appear as historical performance for 10 trading days.

I nor fit guess how d net premium go change for future, but I nor believe say d premium go dey rise small small at all for future, becos of these reasons:

• Dem reduce d selling restriction from one year to six months. Na dis one really reduce d gbege between d two markets and hence d premium.
• Arbitrage activity from AI.As we go see am for d oda section, e get constant "arbitrage activity" for d two markets, naim mak d premium dey get downward pressure.
• Competition wit oda funds or products. As plenti products dey enter d general public, d demand for BTC price exposure go dey go towards d cheaper offer side, and compressing artificially created premiums.
• Share offering policies. Before before Graycale been close d new share offering, e come leave prospective clients d obligation to go buy those stocks for market, d tin come make premiums dey high. Today d offering policy dey pure and audited, so demand go dey easy primary market to absorb.

5. In-Kind Buying

As per GBTC termsheet, you fit enter d primary market if you pay USD to buy shares OR if you contribute your digital asset of d same kind of fund. Na this one dem dey call "in-kind" purchase.

Straight from Grayscale F.A.Q.

I fit buy shares for d Products wit digital assets wey I already get?

If you be investor or you wan be investor you fit donate coins in-kind for shares of Grayscale's single-asset Products. Supposing say each Product dey treated like say na grantor trust for U.S. federal income tax purposes, dat kind donation fit be a non-taxable event. All investors go need talk about d tax consequences of their investment for Grayscale's family of Products wit their person wey dey advice dem about their tax and dem go need look well well d section titled "Certain U.S. Federal Income Tax Consequences" for each Offered Product’s Private Placement Memorandum or each Product’s annual and quarterly reports, e dey applicable before you invest for a Grayscale single-asset Product or if you dey consider an in-kind donation of coins to a Product.

So you fit transfer your Digital assets against d sale of GBTC shares (If e nor dey taxable).

Since dem been nor sabi dis tin before, and dem been nor reason am wen dem dey calculate d amount of Grayscale Buyin.
E neva tey wen one study by Messari make us understand how d dis wey.

D question wey nobody fit don ansa na d "naive" story of:

Grayscale dey buy  X% of freshly mined bitcoins.

E fit be say you don already see spreadsheets like dis.


Thin wey dem talk say na only freshly minted bitcoins dem dey buy be like say e dey too simple, becos e dey clear say dem still dey buy "old" bitcoin but na  in-kind sales change as we tak see am.

Dem nor fit tell us d percentage of those in-kind purchases. D only data wey we get na from d2019Q3 report.



D fact be say d in-kind percentage don stable, we fit reason say e go continue like dat reach today, notwithstanding say plenti bitcoin add to d fund.

Messari do some calculations about d real net Grayscale buyin:


Numbas still big small, be wetin we don see na d actual buying from "new entrants" for d market dey smaller than wetin we dey tink before. Wetin Grayscale buy na only d 8.2% of newly mined bitcoin YTD, and 31% since halvin.
E make sense, but e dey different from how we tak reason am.

6. Hedging Strategies

Wetin dis one dey explain give us be say d majority of GrayScale subscribers na big big investors wey dey play d game for d difference between d primary market shares and those freely transferable. If dem donate their coins for d trust, dem fit give dem chance to tak enta d primary market share. Afta 6 months dem fit allow dem sell for d open market, cashing in a substantial premium, as we don already see am for d picture.

	E dey difficult to unsee dis bend ben once you understand how d plan dey.

Risk dey involved for d process.
If say bitcoin fall during six month pass d premium we fit cash-in wen d trade don end, d whole operation na loss.
For d months wey d investor nor fit transfer d stocks becos e dey lock and e nor fir comot.
Also, d good tin be say, he nor fit sell d stocks, in case him dey okay wit d P&L(tink about a FOMO induced squeeze).



To add to dat one, we need understand say d premium na d one dem don get, wetin e mean be say d premium cashed in wen d trade don end. Dis one mean say wen d trade det start d investor nor know d amount of d P&L, but e nor fit determine d tradin break-even (him fit at least try guess am, but e nor dey predefined).
D tin be say a risk neutral investor, and arbitrageur, go need to hedge him risk for am to tak get some profit.

E get plenti ways to do am.
6.1 Hedging through short selling GBTC stocks

D first one na d one wey dem actually talk about for d enlightening article GBTC: Arbitraging Regulators and Retail Investors Since 2015. For here talk about these concepts d way wey dey simple.
Even if back den d length for d holding period dey longer (one year), na small tin change.

D basic idea na to buy d shares for d primary market, possibly wit an in-kind purchase. Den borrow d share for d secondary market to short am. Na so to lock d premium, and independently from d final realised premium, d investor go collect a fixed remuneration.



We fit directly observe dis effect not only looking at d compressed premium wey we don see recently for d market, but also indirectly noticing how mani shares dey actually borrowed to short sellers:


We fit see how d dynamic of d two quantities dey closely related, wit d borrowed shares numba stagnating or even as e dey decrease wen dem no issue new shares.

6.2 Hedging through short selling futures

Anoda way na to short list futures instead of stocks.
Dis hedge nor go dey 100%, like d oda one wey we don talk about before, but e go get beta advantages.

PRO

• Cost: shortin a future for an exchange nor dey expensive like an OTC lending transaction. Na market dey set d fundin rate , while we fit take GBTC like oligopoly, at best.
• Liquidity of d market is dey big pass GBTC products, so coverin a big position nor be problem.

CONS

• Hedge nor be 100% . We go still dey exposed to d variations for d margins. If shares for GBTC rise less dan BTC (d premium go decrease) we dey exposed to dis variation. To summarise, we hedged out d directional risk for BTC movements, but we dey exposed to premium variation. If premium go zero, wetin we go get na flat P&L.
• Time exposure. Dem don set wen listed futures go expire before for exchanges, so e dey possible say d expiry date e fit nor rhyme  wit our 6 months deadline and future expiry. Wetin dis one mean be say we go need buy back d future wen d trade don expire and also roll d position between futures. On solid way to jump d problem pass na to use a perpetual future. D reduction of d holdin period to 6 months go helep reduce problem anyway.

6.3 Hedging through options

One abjebo way of hedging na to use options.

Wit option d buyer fit gain d possibility to buy insurance ticket to take protect herself against unfavorable events.
If you wan know more, you go need read for my thread: Everythin wey you wan be know about BTC options but fear no gree you ask am

Basically d idea is d one.
D investor wan take a directional risk, but him nor wan run at a loss. To protect himself against dis kind tin, him go need give up some margin wey dey for d profit side.

So, d first tin na to look d unhedged P&L, we go see say d trade go turn negative wen e dey around 8,000 USD. If we look am like dis, one idea go be to buy insurance against dis scenario.

So make we open Deribit and make we look for a downside protection on a 6m trade for price wey dey around 8,000 USD.

D instrument wey we wan buy na Put, strike level of 8,000 USD e dey expire for December.


I see say d OFFER price for such a put na 0.124 BTC.

D investor wan put money for dis buy selling a call.
If we look d call side, we go see d highest call wit price wey big pass 0.124(I wan trade d options wit d smallest positive total price wey dey possible) na d 12,000 Call wit a BID price of 0.132.

So if we buy d 8,000 d selling price go come dey 12,000 I fit protect my trade and cash for 0.008BTC.

D final payoff na d thick red line wey dey d graph wey:



We dey exposed to price fluctuation between 8,000 USD and 12,000.
We dey covered for d downside at 8,000 locking in a tiny payoff.
We go gain up to 12,000.
If e pass 12,000 we go sell d BTC thru d call, from dat level we go dey flat again.

Warning, d premium wey we fit cash in na d one wey we observe wen d trade been end, nor be for d beginning.
If d premium come change, d total graph go shift up or down.

7. Conclusions
I hope say dis post don clear your mind small about how d fund take dey operate.
If you dey read am first e go dey hard to understand small, and I learn plenti tins a I dey do research for am.

Abeg, tell me which post you go like mak I talk about, or which details you want make I dig up!

[Agbe]

Translated Topic in Pidgin Language: Everythin u wan know about BTC option bt u dey fear 2 ask

Original Topic: Everything you wanted to know about BTC options but were afraid to ask!

Authur:fillippone

Options wey dey  bitcoin hav bin accessible only 2 whales nd dey very specific exchanges as Deribit, bt wen Bakkt nd CME, di 2 kamkpe traditional bitcoin exchanges go open di products 2 their clients option trading in bitcoin go bcome more widely open 4 everybody.
Ehen, options trading has been open on Bakkt since December 9th, wey CME go launch a simila thins later dis month, starting trading 4rom January 13th.

Options deh strong things 2 trade. Dis deh true 4 traditional markets, but dis deh even more true in a wild market like bitcoin.

With dis thread, I go try 2 give a few practical nd practical wey go dey understandable, price nd use options.
I go start reveal wat an option dey, explaining all d characteristics of di options nd wat dey mean 4 di investor.
Den I go briefly explain how 2 price dem. I no go explain di details wey di mathematical side l used 2 price dem, becos  he go imply som advanced different calculus wey  nobodi wants 2 hear about. Wat I go try  do 2 convey wat factors hav an impact on option price nd how 2 interpret dos. I go dey try 2 clear di field 4rom som common misconceptions about options.

Las I go explain small common strategies 4 options trading. Nothin 2 strong, just small example on how 2 use dem according 2 di investment purpose: be it speculation or hedging.


INDEX

• Introduction
• Weti bi option
  
  • Strike
  • Time 2 expiry
  • Volatility
  • Example
• How we go market option
• Historical Volatility vs Implied Volatility
• Option strategies - How 2 use an option
  
  • Leverage Trading
  • Covered call writing
  • Collar
• Word of caution
• Useful resources:
  
  • Online Calculators:
  • Exchanges product informations:
  • Online courses:

Weti bi option

Option wey bi contract dat gives di holder di faculty, bt nt di obligation, 2 trade an asset, called di underlying asset, b4 di expiry, di ending date of such contract.
Di option dat gives di holder di thinking 2 buy di underlying asset wi  dey  called call option.
Di option dat gives di holder di thinking to sell di underlying asset wi dey  called put option.
Di price at di trade go happen is called di strike price.
Wen an option generates a trade den wi say it is "exercised", if not he go simpli ends without ani trade put in place wi say it is "abandoned".
If na option wey bi exercised only at di ending we dey called am European Option, while if wey bi exercised anitime b4 di ending dey called American Option.
Di price di buyer of di option pays to di seller, or di writer of di option, wi dey call am di premium.

If di market price wey dey up di strike price, di call option wi dey call am "in-the-money", bcos in di case of American exercise he go fit exercised with profit. If not, di call option wi dey called am "out-of the-money".
If di market price dey below di strike of di put option, di put option wi dey called am "in-the-moni", bcos in di case of American exercise he go bi exercised with profit. If not, di put option dey called "out-of-the-moni".

If wi luk at a certain strike den, onli call options or put option go bi in-di-money, not both of dem. 4 example, if wi luk at 10,000 strike options, di calls go now out-of-di-money, while puts go dey in-the-money.

Wen he don expire, if di option go generate di underlying asset weti e don bin priced dey called “physical delivery”. Mani commodity or financial options dey physically settled. Alternatively, na option go regulate onli di moni wey e dey good go make profit exercising di option itself: dat expiry den na in-di-moni option e don deliver di buyer a cash amount di same 2 di difference between di asset price nd di strike (in case of a call option) or di difference between di strike price nd di asset (in case of a put option). In this case, di option dey called cash-settled.

In di mata of Bitcoin options, namely di Bakkt options wey bi BTC futures, di option dey physically settled: at di expiry of di option di in-di-money option generates an appropriate position in di underlying future. There’s only a peculiarity: as e dey common on mani commodity options, di option itself expires some days b4 di future, so di holder of di in-di-money options has di possibility 2 close di future position b4 di real delivery of di underlying of di future (di option has di future as underlying, di future has di bitcoin as underlying). Dis is y u probably heard some marketing nonsense where “Bakkt options allow u 2 choose di type of delivery: physical or cash)".

B4 analysing mathematically how 2 market an option, we go see dat impact di marketing with di intuition.

STRIKE: Di first element dey di strike. Of course, di difference between di market price and di strike dey di first hint at di value of an option. Intuitively di more an option dey in-di-money, den di more such an option must have value.  
Wen an option dey in-di-money, such an option has intrinsic value. 4 both call nd put options, di intrinsic value dey equal 2 di difference between di underlying market nd tdi strike market: intrinsic value onli measures di profit as determined by di difference between di option's strike market and market price.
Wen an option dey out-of-di money instead, di intrinsic value deh zero.
Di intrinsic value dey di minimum value of an option: if di value of an option go bi less dan di intrinsic value, go bi arbitraged, buying dat option nd exercising it 2 profit.

So wen BTC dey trading at 7,000, a call with strike K = 5,000 dey in-di-money nd has an intrinsic value of 2,000, so di market must bi greater dan dat. At di same time, a call with a strike K =10,000 has no intrinsic value, so di intrinsic value dey zero.

Of course, intrinsic value dey onli a part of di marketing of an option: oda things impact di option marketing each won of dem adding value 2 di intrinsic value getting di final value of di options:

TIME 2 EXPIRY: di second most important element wen marketing an option dey di time 2 expiry: di longer di time 2 expiry, di dearer di option. If wi market 2 options with all characteristics wey dey equal, bt di exercise date, di won with di exercise date di furthest away, go have di greater price.

VOLATILITY: di greater di volatility of di underlying asset, di greater di value of di option. Here di explanation e gets small bit tricky. Wi go say dat di konkon reason he no go pass di volatility of di underlying, di greater di possibility of di underlying going in-di-money. We go see later why dis dey gud, make dis no dey  obvious. di option e no profit 4rom di option going in-the-money. E no profit only if di option goes in-the-money. di buyer of di option benefits just bcos di underlying asset walker (i.e. e deh volatile) under a risk-neutral approach, i.e. without taking di “risk” of profiting bcos di option goes in- di -money.

we go see example:
We buy a call option on BTCUSD, with a strike price of 8,000 USD, expiring in June 2020.
Di way dey named Long call bcos buying something dey called being "long" in finance jargon.
di premium for dis option e dey  1,350 USD, wi ve 2 pay fast fast ("upfront", again in finance jargon).

Fast forward 2 option expiry.
Di outcomes of our option e dey differ according to di final price of bitcoin:

If BTCUSD e dey down to  8,000 USD  di option go abandoned, it expires worthless.
If BTCUSD e dey up to 8,000 USD di option go exercised, nd generate a payoff equal to di difference (positive) among BTCUSD nd di strike price.

In more formal terms di call option payoff e dey di following:

Call=max(0;Spot-Strike)

Di endingl payoff of di strategy go be di following:



Note dat dis graph considers we paid a premium of 1,350 USD upfront, di premium go paid in every scenario: if di option expires worthless di P&L (Profit&Loss) of di strategy e dey bad and equal 2 di premium paid, otherwise e dey equal 2 di option payoff netted with di premium paid.
Note dat di P&L starts increasing at di strike price level, 8,000 USD in dis matter, but breaks even at a higher level equal 2 di strike + di premium plaid, or 9,350 USD in dis example.  

Make we see di same thing for a put option.
We buy a put option on BTCUSD, with a strike price of 6,000 USD, expiring in June 2020.
Di strategy dey named long put.
Di premium for dis option dey  732 USD, we hav 2 pay "upfront".

Fast forward 2 option expiry.
Di outcomes of our option differ according 2 di final price of bitcoin:

If BTCUSD deh above 6,000 USD di option go deh abandoned, it expires worthless.
If BTCUSD dey below 6,000 USD di option go deh exercised, nd generate a payoff equal 2 di difference (positive) between di strike price nd di BTCUSD.

In more formal terms di put option payoff dey di following:

Put=max(0;Strike-Spot)

Di final payoff of di strategy go be di following:



di graph luks familiar, as e dey di symmetrical payoff than di call.
Note dat di graph considers we paid a premium of 732 USD upfront, di premium must be paid in every scenario: if di option expires worthless di P&L of di strategy go deh  negative nd equal 2 di premium paid, otherwise is equal 2 di option payoff netted with di premium paid.
Note dat di P&L go dey high at di strike price level, 6,000 USD in dis matter, but breaks even at a lower-level equal 2 di strike - di premium plaid, or 5,267 USD in dis example.
  

Wi go hav a luk at an options exchange luking for confirmations.
All di examples come 4rom Deribit, who dey di only widely available source 4 option prices: creating an account dey easy nd e no require KYC. If u come interested 2 do am 4 educational purposes. Of course standard disclaimers apply nd I linked 2 dat exchange.

If wi select BTC options, nd den 26 Jun 2020 wi go find a screen like di following:


(click on di image 2 enlarge it)

Dis particular page considers di options maturing on 26 Jun 2020.
Di centre grey column represents di strike levels. Di options on di same row share di same strike price.
On di left of dat column, we have di call options 4 each strike, while di puts come deh on di right-hand side.
di bid price na di price where oda pipo want 2 buy di options, i.e. di price u hav 2 sell at if u want di sell am.
Di ask price na di price where oda pipo want 2 sell di options, i.e. di price u hav 2 pay 4 if u want 2 buy am.
Each bid nd ask price has a corresponding Implied Volatility level, nai bi di volatility level dat, if inputted in di model, gives back di aforementioned price.
Dis na y speaking of options, volatility nd price come exchangeable concepts.

As we dey see am early, we see dat di calls hav a diminishing price wen di strike goes up: di 6,000 call has a mid-price (di average between di bid nd di ask) of 0.29725 BTC, while di 10,000 call has a mid-price of 0.11275 BTC.
Di opposite dey true 4 di puts. Di puts with lower strike hav lower premiums.
Di put stuck at 10,000 has a price of 0.46075 BTC, while di 6,000 put has a mid-price of 0.09725 BTC.
Also, we go see dat examining options with greater time 2 expiry each option has a greater value: di 10,000 USD strike call maturing in September has a value of 0.16775 BTC versus the value of 0.11275 of di same option maturing in June. Di 6,000 strike put has a value of 0.13175 BTC versus di value of 0.09725 of di same option maturing in June.

If we plug di data we find on dat page in an options calculator we go reprice di option itself.
If we try 2 reprice di 8,000 USD call, inputting 0% as di interest rate (BTC dey 4 non-dividend paying asset) nd di correct information about strike, underlying nd implied volatility, we get di (almost) exact valuation we hav on Deribit:  



Di numbers wey deh down di option price na di "greeks" or di sensitivities of di option price 2 their different component:

DELTA: na di sensitivity of di option price 2 di underlying: if di underlying go up 1 USD, di option price go up 0.55 USD.
GAMMA: na di second-order sensitivity of di option price 2 di underlying: if di underlying go up 1 USD, di option delta go up 0% (I guess there's a rounding factor here 2 consider in dis calculator)
VEGA: na di sensitivity of di option price 2 di volatility level: if di volatility go up 1%, di option price go up 20.54 USD.
THETA: na di sensitivity of di option price 2 di time: if 1 day passes, di option price go down 4.39 USD.
RHO: na di sensitivity of di option price 2 di interest rates: if interest rates go to 1%, di option price go up 13.49 USD.

Di greeks of an option e don linked 2 each other in a pretty difficult way, e get many ways 2 interpret dem nd they all varies continuously given di level of di market, di volatility nd di time 2 maturity.
Books hav been written on how 2 tame dem nd use dem in your favour. I think dis very brief explanation  e deh ok 4 dis thread.

How 2 price an option

Understanding di details of how options dey priced, would mean understanding very advanced mathematics, including stochastic calculus, differential calculus, statistics, etc.

Here I go only give u a few important concepts, u hav 2 keep in mind wen thinking of options nd their value.

Black&Scholes won di Nobel prize 4 their option pricing model. Their biggest achievement was 2 demonstrate nd e deh  possible 2 price an option using non-arbitrage conditions. Arbitrage na di trade where a profit dey  gained involving no risk nd no capital. Of course, dose trades e no deh exist, so markets go adapt demselves 2 avoid dese situations. Thinking under di “non-arbitrage” conditions, means also dat no risks go involved, hence di individual appetite 4 risk of each different trader in di market go bi taken out of di equation. Dis means dat every trader in di  market go think  using d same “language” of a world without risk (if we think with no-arbitrage conditions, we go ignore di associated risk, den we go ignore di willingness of every trader 2 take dat risk). Dis means di price of such a derivative dey unique, irrespective of di risk appetite 4 each trader. Dis won has di important consequence di price of an option dey INDEPENDENT of di probability given by each trader about di possibility of di underlying ending in-di-money. Dis na something wey wi hav 2 keep in mind: di price of an option e no mean automatically dat di scenario where e deh ends in-di-money dey more “plausible”.

Historical Volatility vs Implied Volatility

As wi go see di only “difficult” input 2 price an option dey di volatility 2 bi used.
Di correct number 2 bi plugged into 2 pricer dey di expected future realised volatility until di expiration of di option. Quoting dis number means quoting di price of di option (being di other option pricing numbers deterministic, i.e. known without uncertainty).
Di volatility level used 2 price an option dey called implied volatility bcos na di level of volatility “implied” by di quoted price.
How do u quote di future volatility?
Here’s di trick of options trading.

Di first idea e go look at di realised volatility: looking at di past go give first guidance of di future volatility. Of course, dis won e no deh always true as e go be many factors dat go change di volatility in di future. One easy example, specific 2 bitcoin options go bi di halving. Dis event, according 2 many models, go hav a great impact on di bitcoin price. So wi go guess dat coming into di halving d volatility go bi low: bitcoin might move, but without great variations, but once di halving happens, di price go possibly start swinging more, due 2 di very different valuation di S2F model implies. In dis case realised volatility won’t bi gud guidance 4 di future volatility: namely di realised volatility go bi much lower dan di future volatility used 2 price options with expiries after di halving.

Many websites calculate di realised volatility of bitcoin: on Deribit u get get won.

Calculating historical volatility with different horizons yield very different results:



In di above graph, wi see di bitcoin price (black line, left axis), with di superimposition of different historical volatility calculations using different terms (yellow, red and blue lines, right axis). Volatility in di short term go bi more “volatile” itself (yes, na di volatility of volatility, but dis na 4 advanced options trading). Di yellow line represents di annualised historical volatility calculated using di previous 10 trading days, nd as wi see in di above graph dey swinging more violently, 4rom 180% 2 below 20%. Volatility calculated over more extended periods of time, like di blue line (calculated over di last 30 days of data) or di red line (calculated over di last 180 days of data) dey instead more nd more stable as wi extend di calculation interval.
Of course, wi  deh more interested in matching, with di caveat earlier explained, di historical volatility computation with di time 2 expiry of di option wi want 2 price.

Di implied volatility go instead bi observed on options markets. If wi luk at di options screen above wi see some IV columns: dat dey di implied volatility corresponding 2 each quote. If wi use di model in di opposite way, wi go use di price as an input nd find di volatility implied into dat price: dat dey di implied volatility.


Option strategies - How 2 use an option

Options go dey very complicated instruments, here I want 2 highlight only a few uses of dem.
Dese go bi most simple ones, nd all hav in common 2 bi “static” strategies. Dis means dose go meant 2 bi put in place nd not touched until maturity. There go bi different strategies meant 2 bi adjusted during di life of di option. Dese go totally different animals nd wi dey call am dynamic strategies.

Leverage Trading

Scenario:
U want 2 gain as much possible exposure 2 bitcoin.
U hav a very clear trading view.
U no dey interested in losing ur capital if dis view e no deh materialise.

Strategy:
Use ur funding 2 pay di premium 4 an out-of-di-money option, choosing di strike 2 maximise di expected final payout.

Example:
- Buy 1 call option strike 7,000 USD, Jun Expiry at 0.233 BTC.
alternatively
- Buy 1 call option strike 8,000 USD, Jun Expiry for a total of 0.1805  BTC.
 


Analysis:
In dis scenario, u hav gained exposure 2 di appreciation of bitcoin above di strike level using only a fraction of di capital required 2 buy di underlying (i.e. 1 bitcoin).
In di case of bitcoin being at a price of 10,000 at expiry, in di case of a bitcoin investment, u would have a return equal 2 (10,000-8,000)/8,000=25%.
Dis na di base case scenario of no leverage.

Buying an in-di-money call option di return would bi instead (10,000-7,000-1,742)/1,742=72%.
Note dat if di option gets further in-di-money di return go go up even further as di option paid  e dey constant, while di gain increase linearly.

In di second example, wi bought an out-of-di-money option, using even less capital.
In di case of bitcoin being at a price of 10,000 at expiry, di yield go bi in dis case (10,000-8,000-1,350)/1,350=48%.

Of course in di scenario of an opposite movement, ur loss dey limited 2 di premium paid, which e go lost entirely.
Dis implies dat u hav 2 choose wisely not only di strike level, 2 gain di correct level of exposure, but also di expiry, as di movement has 2 materialise B4 di expiry of di option.

 
Covered call writing
Scenario:
Na u bi whale u want 2 sell part of ur bitcoin holding 2 finance ur daily expenses. u go bullish on bitcoin as an investment.

Strategy:
Sell out-of-di-money calls, cash in di premium 2 finance ur expenses, actually sell bitcoin only if di price go up (possibly on a spike).

Example:
- long 1 bitcoin,
- sell 1 option strike 10,000 USD, Jun Expiry at 0.11 bitcoin.



Analysis:
Di payoff of di structure gives u a benefit over di simple holding of bitcoin equal 2 di premium if di price dey below di strike price at maturity.
If at expiry di price dey above dey strike, dey option go go in-di-money nd u sell di bitcoin.
Di strategy has a break-even, compared 2 bi long di BTC only, at a level equal 2 strike + premium received (in dis example at 10,000+0.11*7,478=10,826 roughly).
If di BTC go further up, u basically sold a bitcoin at 10,826, hence di strategy has a lower value against holding di bitcoin.

Collar
Scenario:
U bi whale.
U want 2 sell part of ur bitcoin holding 2 finance ur daily expenses.
U bi bullish on bitcoin as an investment.
U get pissed off in case of a violent drawdown in bitcoin prices.

Strategy:
Sell out-of-di-money calls, cash in di premium 2 finance ur expenses, actually sell bitcoin only if di price go up (possibly on a spike).
Use di cashed-in premium 2 buy protection on di downside, i.e. buying a put option.
Buying an out-of-di-money call nd selling an out-of-di-money put is a strategy known as "Collar".

Example:
- long 1 bitcoin,
- sell 1 call option, strike 10,000 USD, Jun Expiry at 0.11 BTC,
- buy 1 put option, strike  6,000 USD, Jun Expiry for 0.098 BTC.



Analysis:
Di final payoff is similar 2 di won of di covered call writing.
Di payoff of di structure give u a benefit over di simple holding of bitcoin equal 2 di difference between di premiums paid 2 buy di put nd di premium cashed in 2 sell di call. In dis particular case, I chose 2 strike levels 2 hav di smallest positive difference between di twos. If di price dey below di strike price at maturity.
If at expiry di price dey above di strike, di option go in-di-money nd u sell di bitcoin.
Di strategy has a break-even, compared 2 bi long underlying, at a level equal 2 strike+premium received (in dis example at 10,000+(0.11-0.098)*7478=10,093 roughly).
If di BTC go further up, u basically sold a bitcoin at 10,093.
On di contrary, if BTC go down, u also bought protection at 6,000, as u dey long a 6,000 put. More precisely, as u cashed in a premium of 93 dollars, u dey protected at a 6,093 USD. In case bitcoin go down more, u no dey affected, as di payoff of di put protects u on di downside.


Word of caution.
Options dey  very complicated topic.
I tried ma best effort 2 explain dis topic in di most simple nd intuitive way.
I go expand di thread in di direction u prefer. Just ask mi 2 explain wat u dey interested in most, or just ask mi 2 clarify di point u want mi 2 dig more precisely.


If u think dis thread or any other of my threads dey worth 2 bi translated in ur own local board, please do! I go happy 2 provide assistance!


Useful resources:
Online Calculators:
Option Calculator

Exchanges product information:
Option on Bakkt ™ Bitcoin (USD) Monthly Futures
Options on Bitcoin Futures

Online courses:
Basic: CME Option Course
Advanced: Options Theory for Professional Trading

Dis post dey eligible 4 ma project:

Help me translate my best posts in your Local Board

I bi strong believer in di utility of local boards.
I dey lucky enough 2 bi able 2 express myself in at least a couple of languages, but I know dis won no bi case 4 everyone.
plenti users post only on di local boards bcos of a variety of reasons either language or cultural barriers, lack of interest or whatever other reason.
I personally know a lot of very good users (from di Italian sections mainly, for obvious reason) who no dey post in di international sections.

I think all dose users dey miss a lot of good contents posted on di international (English) section or on other boards.

If u think u go help here, just visit di thread!

[Hyphen(-)]

Translated Topic in Pidgin Language: How You go Fit Secure Your Seed Phrase wit Washers
Original Topic: Securing Your Seed Phrase with Washers
Author: fillippone

Introduction
Custody of d seed na tori wey don dey my mind since. For d first time, Bitcoin na d system wey don put the responsibility to get your own moni for your inside your hand. This feature cari beta opportunities and risk, bcos of the way wet Bitcoin dey. D person wey get d bitcoin na him fit sign and transaction with komputa wit the private key wey follow am - no oda person fit do am. Person, institution, or bot, whoever get control of d private key, am him fit control d bitcoins. Wetin dat mean b say d custody of bitcoin dey importanta if we dey reason d possibility of signing transactions and d other gbege wey person nor fit sit, whether now or for we future, whether na personal, social, or na technological matter wey person wey get bitcoin fit see for d years to come. We gats assess d technological, personal, and legal gbege wey fit happen when we dey reason d kind way we go take store am:

If u dey find correct guide on how u go tek choose how to backup your seed phrase, you fit look this new article, na from Jameson:
How u go tek Backup a Seed Phrase

Of course, d important tin be say Bitcoin don make the self-custody option wey dem no allow for nornal finance dey possible. Na confam feature dey give bitcoiners mind no mata d kind gbege wey go dey happen and fit dey happen anytime for d future.
D wahala b say self-custody dey complex, and d amount of bitcoin wey pipo don loss na d warning for anybodi wey dey reason do am: d challenges wey dey tire wrapper.
I don dey do research for dis topic for some years, and ono of d first articles wey totori me for body na:

Gifting satoshis to future generations

E never too tey wey dem ask me to dash some satoshis to new pikin wey dem just born, d pikin go fit collect the satoshi when him don reach like 18 years.
D challenge tie beta wrapper bcos nor b wetin I bin dey expect, as e get plenti way to take store bitcoin, each one get him different trade-offs. At d same time, e come hard to tak guess how bitcoin go dey for the 20 years dey go.

As I dey read the article, na den I come dey realise say if person get keep him own private key by himself for a physical wallet d tin get plenti advantages:

• person nor go dey depend on d technological development in for d wallets/IT supports
• You nor go dey fear say d physical support fit spoil
• E dey easy to take use am dash person as gift.

As i dey browse for d internet, I come see dis page for Jameson Lopp’s website, na famous Cypherpunk and security expert, where him bin test different Metal Seed Storage:
Metal Bitcoin Seed Storage Stress Test

For the first round of testing, d tin wey catch my eye, as na d first implementation of d idea of printing d seed for washers by SAFU Ninja:
SAFU Ninja Review

Him yarn about dis confam idea for him blog:

Cheap and Easy DIY Metal Bitcoin Seed Storage – Safu Ninja



D mata be say you fit do the storage tim with pieces way you fit find for welder shop to tak print d seed.
D most critical part for d work na how to tak stamp d letter for d washers, e nor dey easy, and d tin nor go too fine if na hand wey you use do am.
Therefore, some kind welders fit get their kind machine(jig) wey dem fit use do d correct orientation, separation, and correct printing of the letter
The most famous jig for oyibo side na from Cryptocloacks.


Dis jig fit do the arrange the letters wella as e suppose be.
You fit find d n0nce jig for bitcointalk.org.
n0nce's Steel Washer Backup jig



D advantage of dis jig dey two: d first one be say d project dey modular. Therefore, you fit use am for different sizes for d washers(d main koko about d project na to just print on more large size washers) and kpatakpata, adapt to d various dimensions wey d punches get.
Secondly, n0nce don do beta design of the Blockmit jig, dis one make the different parts dey strong and e com dey protect d invention with small small tolerance to take reduce d work wey dey happen between d components.
Na d n0nce jig I go use for d remaining of this guide, but d way e dey work dey de same. Finally, for d last part, I go analyse d difference wey dey for d two projects in details.

As Federico Tenga don already yarm, d BIP39 standard presents "risks of obsolescence" and, kpatakpata, risks wey dey becos of d derivation path wey dem use. Na why him use d WIF format for him test.
Even though say I understand wetin dey make am fear small, I still decide to use the normal usual BIP39 format instead of dis project's first iteration. Wetin I believe be say e present d correct risk/benefit balance for d practical possibility of recovery by d person wey go receive d message.
Nothing fit stop you from hacking d key wey dey d format for d washers: d string get 51 characters so wetin you need na only seven washers.
For internet, na econoalchemist be d first person to take yarn about hoe d tin go take go:
Securing a Bitcoin seed phrase in stainless-steel washers (abridged)

Wetin I fit talk? Na über cool guy wey him be. A complete test wit a blowtorch! I no even dey reason am, and I go dey okay to do d printing for washers wey fire, corrosion and pressure nor fit touch. I dey fear say e nor go dey different from the kind tests wey econoalchemist and Lopp do.

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Shopping List
As I don talk before, d company advantage na to use d pieces wey already de ground. Dis choice go helep d person get some kind security by obscurity, as nobodi go fit sabi wetin you dey do. Indeed as Safu talk for him guide, if you get sometin wey dey your house wey you go fit use, use am, no even tin to go market go buy am. If you know person wey already get those punches, beg say make e borrow you say you wan use print keys instead of to go market go buy am(no ever tell d anythin about bitcoin o)

Make you use dis models as suggestions:
Washers
Washers wey get an outside diameter na 24 mm, inside diameter na 8 mm, and stainless steel dey okay. You fit find dem for mechanic workshop or shops wey dem dey sell hardware store. Twenty-four washers naim we nee for d key and four washers for d additional safety devices. You go need mani extra washers for d mistakes you go make when you first start.



Wetin I go advise be say make dem be stainless steel. The most corrosion-resistant steels are 304 and 321.

Bolt
We need like 60 mm bolt with a nut, a diameter of 8 mm (if you get correct eye you go don notice say d diameter dey d same wit d washers!).


As we talk before na still stainless steel you go use.

Sledgehammer
You go need sledgehammer. Normal hammer nor go fit do d job well go since d weight must impart enough force to take stamp d washer wella. Again, e nor dey hard.



Anvil
Who fit believe say na your passion for Bitcoin go make you buy anvil!
Becos of wetin dey involve to take print d washers wella, you go need beta support wey nor go damage as you dey knack am.
Na this small 1kg anvil, d smallest wey I fit find, na him dey okay to take do d job.




Of course, if e big na him dey beta, but if you want save some euros, you fit use d side wey smooth of another club or a d bottom of a metal. D important tin be say na correct large surface wey fit give us assurance of good stability of d jig and d force wey dey applied by d club - well na person choice sha. However, my own be say this min anvil make beta sense if you use am take do d work.

Stamps
Regarding d stamps set, wetin I choose na d 6 mm punch set: e get 36 characters, all letters, digits, and d “&” character. d quality dey good, and d dimensioning of d punches is okay. I nor see error when I been use am, and d print quality nor fade during d whole process.



Safety labels
These ones na adhesive labels wey, as you attach am, break, leaving a mark for d surface.



To fit close d container, you go need safety label wey go leave a mark if dem open am. You must number dem one by one to print d serial number inside d washers.

Hermetic container
We want put d seed for container wey air nor fit enter because e fine and to take confam e integrity. I see dis for a lovely bitcoin orange. Among oda tins, d internal diameter na 25 mm, therefore ideally e dey okay to take contain d washers. If you decide say na another type you wan buy, make sure say d diameter and length of d space wey dey inside dey okay to take contain your seed.



Laidis laidis eh, the setup don almost complete.
For bottom I don give d necessary materials.



Oda miscellaneous material

• A pair of gloves.
• Hot glue gun and stick. To take seal d washers.
• Circular labels for security seals.
• D private key for BIP39 format.
• Indelible marker.

D following na d summari of wetin e go cost you for oyibo moni( I nor add d time wey you go spend):

Washers+Bolt+Nut	EUR 3.00 (Sold By Weight)
Blockmit Jig	free
n0nce Jig	EUR 30.00
Sledgehammer	EUR 12.99
Anvil	EUR 9.90
Stamps	EUR 28.79
Safety Labels 100x	EUR 12.99
Container	EUR 15.27
Gloves	EUR 2.50
Duct Tape	EUR 03.99
Microfiber Cloth	EUR 01.00
Hot Glue Gun	EUR 09.50
Circle Stickers	EUR 00.90
Indelible Marker	EUR 8.13
GRAND TOTAL	EUR 138.96

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Stamping Verifying and Sealing d Seed
D procedure dey straightforward. Put d washer inside d jig, cover d yansh of d jig wit tape. D tape go weaken d washer wey dey inside d support so dat e nor go stop as you dey hammer am.
If you do am like this, the letters wey you dey print go dey alright, but if e nor sweet your belle as the letter dey when you print am, you fit try make you reprint am, untop of d signs. This one na d main advantage wey dey when you dey use jig: to do everytin with your hand, fit make the printing dey jagajaga, but if you use a jig, you sef go confam d printing, and if you do am wella all the letters go make correct sense for the metal. Nevertheless, if you use jig, d work go dey straightforward and e go dey presentable if you follow d gif:


You fit use d two upper notches take identify d correct way wey d words suppose dey, while you fit use d eight lower take print d terms. For d BIP39 standard, na only 8 letters wey the words fit reach, and d first four letters dey sufficient enough to take identify them. You nor need to worry say d data go loss if one or two letters not dey clear.
Put d jig for d anvil and knack am.
Do am like dis for all d letters and all d words.

To talk too much nor good so make I show una one or two videos make una confam am:

	Where I dey do the work for outside. Look d washers wey don spoil wey I throway.	How I take dey do the work.

Wetin I go advice be say do an jejely. Na one hour thirty minutes wey e take me to print everitin finish. I do plenti mistake when i fess start. I do am again, I sure say e nor go reach one hour, but make I use my time do beta tin.
Make check well well say you write d seed correctly, check say d spelling dey correct, and say you do am as e suppose be.
Check am two times, and a third time. No use the paper wey you print. Instead, look d software wallet directly to make sure say you no any error as you dey transcopy d seed. Look am word for word, letter for letter.
Put all d washers inside the bolt as you take number am, make you no put the one wey you nor write any thing for d same side for corner.
When you don write for all d seed, wetin I go advise you be say make you add some kind "special" washers.
D first suggestion na to print emergency telephone number on top am.

E nor mean say d person wey go recover d seed must be odogwu for bitcoin, and e nor mean say you go help ma if she wan colobi am. You fit add for d washers d telephone number of person wey you trust wey fit help d person wey to need to recover d funds to do am well.
In addition to being person wey I trust ("Thief only small moni wey you go fit use help you life small", I ginger am, I tell am say I go show am kolomental if him use my moni take go buy house), she na person wey sabi all these technical thing incase one or two things nor go well.
I print d telephone number for the front and back of one of d washers, wetin I use take identify am na wit d initials P1 and P2.

	Telephone numba wey I don print for d two sides of d washer, maybe e go make sense if I put my countri telephone code!

If you compare am with wetin I don do, e go make sense if I engrave d international prefix put( I fit print d "+" character wit two "I"s wey dem cross). I nor too dey reason how accurate e dey, but na just to make am show, na phone number e be.
D second tin wey I wan suggest na to put d serial numbers of d security labels wey go close d container in side d side. Den, when d source dey open, d perosn go fit confam d correspondence of d serial number wey dey on top d washers wit d labels wey dem just use to make sure say person never touch am. I put two more washers wit XX SECURITY wey i write for one side and d two serial codes of the corresponding security labels for d oda side wey later I to need to cover d container.
Na sometin like dis:

	D washers suppose get d printed serial number of d security label	Backside

As I finish see wetin come dey with me:

	24 washers wey get d words of d seed, one get d recovery phone number, and two na d copies of d security seals.

For here, I come sign and put date for two white labels and I gum dem for d washers wey dey first first. Dis is d first of d security wey I don put.

	Block overview, ready to be sealed.

	Sealed metal case: I share am into three pieces, and d one for middle fit take only plenti washers pass d one wey we use.

I fit seal d block with confam super glue for d two sides, welding d data as e dey wit d washer. Once I don put d super glue finish, e show d opening wey dey d block.

D block dey ready to put am inside d tube, wey I go still seal wit insulated safety labels wey I don do before.

	You fit close d tube now. You fit see say d seal with super glue close, e dey semi-transparent an e dey show d signed label for under am.	D closed and labeled container.

Make sure say you position d label transversely to d opening of d container so dat e go dey effective when you dey am. If you open d tube, d tags go tear, and if you you been position dem, d serial number nor go match.
D solution get e own limits: If na thief wey get mind, him fit replace s whole block with d one d secutiry wey resemble am (anoda sentence, oda labels, oda seals).
E dey importanta say you nor show anybodi how you take seal your seat or how you go take sabi if them wan run you street.



Some final tips:

• Mek u practice smal b4 u start to de print and understand how hard u go need to apply to d club to print d letters correctly.
  Mistakes na sometin wey u no go fit avoid, but make u de use to de chek dat u don do am correctly:
  
  • Mek u correct d positioning of d washer 4 d jig
  • Mek u position d jig 4 correct position wey dem go print am
  • Mek we chek orientation
  • Successful engraving check.

• D bigger errors wey I don do na wrong orientation cos about d punch cos am. I fit be gud idea to mark one of d sides of d character ( like d button side) wit permanent marker so dat we go quick understand how we go tek insert d punch inside d jig to get d correct orientation 4 d character.
  Mek we remember say to b printed correctly, d character must be entered differently depending on weds dem use am print d sequential numbers 4 d top or actual word.
• Mek we de very careful as we wan troway d "wrong" washers. Abeg mek u no liv dem 4 plain sight, no troway dem dogether. If u get wrong orientation of a letter, d word still de readable, and if u Don print many wrong washers, d level 4 d entropy wey we fit get de too high to kip your seed safe. B4 u troway d washers, mek u print plenty letters on top each oda so dat d word go de unreadable and troway d washers one at a time, and each one 4 different place.E beta if u disguise d washers 4 place wey deti like coffee grounds or diapers (thank you @LoyceV). Na d same suggestion u go de follow if u wan troway all seed, even if e no get Sat's 4 dis anymore. Losing d privacy 4 ur fund fit mean say u de lose ur security.
• I no use scotch tape to put d jig to d anvil, as dem suggest for d original article, as we fit use hand hold am.
  However, d scotch wey de keep d washer 4 d jig de essential to prevent am 4rm moving as dem de print am. But 4 dis point, I no recommend double-sided tape, but I go recommend d normal one as long as e de strong (duct tape or "American").
  
• Mek u sha no ovrdo am wit hot glue. 4 my setup, d washer de exactly inside d cylinder, and if u overdo am wit d glue (gum), dem no fit dey anymore.
• To print d both sides of d washers de possible. As u do am, u go don use half of d washers. Dis choose go allow smaller containers or d extra information do de enclosed 4 d washers wey remain.
• Afta writing dis guide, I notice say 4 d Safu Ninja website, e get doa links wey u fit get a link 4 were u go buy a set wey go do everything wey u go wirte 4 dis guide

42 HODL CAPSULE

U de free to do am, bt 4 d "security by obscurity" disclosure, I tink say e beta mek u no alow obscure site know sa u wan buy a set to use am store cryptocurrencies.


Small parenthesis 4 dividing d seed phrase in different places.

D idea 4 separating d seed phrase 4 different sides na controversial practice. Therefore, each strategic decision 4 dis regard must be made as we go consider d risk characteristics wey de lose of d seed phrase, theft or acts of violence, technological experience, d time horizon 4 d backup, and potential personal attributes 4 dos who go potentially recover d backup, etc.
Splitting d seed 4 plenty places de increase d security against theft but e mek am more hard regarding d source's loss. Indeed, 4 d case of multisig (2 of 3,for example), as we know say one of d seed de compromise, and fit help secure d moni witout being too late, as wit d single seed.

Mek we talk say dis guide focus on how we go tek keep single seed witout going into d merits of its configuration (single signature/redundancy/split/Shamir's secret/multisig).
 
[TOP]

Extras


A comparison 4 d support jigs

Wen I start to de tink about dis guide, I see say to get d jigs to print d washers na im go be d problem.
E sure say e go also de nice to do am witout plenty addresses 4 around Internet 4 all privacy talk.

So I been try search d Internet. I send email go wan printing service wey de my city for proptomail, attaching d block it file, and d response na dis tins:
 

Elo,

Consider expense 4 € 30 + VAT wey d delivery dey within 2 woeking days, FDM 3d printing in ABS.

Regards,

Given d problems 4 anonymity and d costs, I decide to try am 4 Telegram Channel wey de didicated to 3D printing, wit hand delivery 4 d objects.

Fortunately, 2 users quickly show face.
D 1st person print d Block it file 4 me free becus say him de kind bloke and above all, becus him get d curiosity 4 wetin I go det 4rom d tin.
D 2nd pesin (Telegram: @liiuk99) ask me say make I pay 30 euros, as I see d superior quality e bost my head (na higher quality printer prinyer and him de use beta carbon filament, na so him talk). 
I decide to get d "professional" printer to print d n0nce file mek I compare am wit d Blockmit's.
I no get experience wit 3D printing. Bt I de read 4 Internet, and d "free" printer confirmed to me say d cost of d material de negligible. So I wan compare dem if different go de betwn d two objects if dem print dem.
But d "professional" printer no gree print giv me, mek I do d real test, even d Blockmit file, so d test no gree complete, bt I tink I get beta idea.
 

 

	D 2 jigs wey we de compare: n0nce own wey de certainly larger and more strong. However, i de almost supprise wit d sturdiness of d Blockmit jig.	D backside of d central piece 4 d two jigs: appreciate d different kpatkoata.

D cheap object de aesthetically "ugly" and dem get great mechanical play btwn d parts. I don't know weda na becus of d file or d print quality, by e get some unnecessary talks betwn d two pieces, wey no go allow u "print" d letter exactly 4 d same place. And also even punch no de well stucked 4 im support since e fit slightly swing. Lasslass if dem don put am e no go allow u to accurately "reprint" a letter if e no turn out wella.
 On d oda hand, d one wey I don print 4rm n0nce file, in addition to being physically larger (partly justifying d bigger printing cost), e appear more stronger. Slight play no even de between btwn d two components or betwn d two components or betwn d components and d punch.
 
n0nce don provide d file wey get different sizes 4 d punches. Unfortunately, I get issues: even as I measure carefully, d hole still leta become too small.
 
I hav to by square file and "file" d hole so dat e go wide to fit d punch. In addition to d question 4 cost, my printer wey I trust been de my city by chance, d shipping 4 de somehow expensive and all in all, e for don force me to reason all d "tricks" wey I know in so dat I no go show my identity.

After all, perhaps it is better to have narrower holes and file them once printed than to have wider gaps, preventing correct and precise punch positioning.

4 dis mata I buy a square file 4rm d trusted Leroy Merlin. E Don de dere say I no know say e exist, bt e turn out wella 4 d main purpose: E de wide enough to put am inside d hole and slowly tie d excess material. D square shape of d file na to widen d gap wella. 4 lik 30 minutes wey dem full d inside of d walls, I don get a biga hole we de enough 4 d punch afta all, maybi e go beta make e get smala holes mek I file dem as dem print dem dan to get biga gaps, mek I preserve d correct and precise punch positioning.


n0nce don release a new file we get fully customisable jig: d design na parametric and e fit adapt to any washer and punch. Dis customisation com favored d reuse of d element. I de tink am upon all d points, wey suppose don de available, so te we no go de buy d ones we go suit d dimensions of d jig. Na Jst chose sizes (diameters and thickness of d wheels, dimensions of d punch) to get a perfectly custom-made file 4 ur needs!

	E carry beta 30 minutes wit d file to widen d hole wella. D square file de fundamental. D material de really studry.

I de surprise by d "resistance" of d material, as e no deform even as dem de fill am, e com remain homogeneous and opposing beta resistance 4 d treatment.
Among oda tins wey de use, d hole go naturally wide, and to position d puncher go de les precise. In fact, wen I run test, as d fit de exactly precise, 4 d begining, d punch de even struggle to pa's inside d support. Bt in d end, e de very loose, and even d reprinting of d letters no come de well.
4 d end of d printing process, I been try compare d two jigs on d quality of d reprint. .

	Contrary to wetin we de expect, n0nce's jig performs worse pass Blockmit's. Bt e get beta reason.

As u de see am, d reprint 4 d n0nce jig d worse-d result de surprise me. D comparison no de fair since na n0nce jid dem use as dem run d experiment, while d Blockmit de practically new. Dis means say d hammer strokes wey dem use, d hole 4 d n0nce jig don wide wella, as e come allow non-homogeneous putin of d punch, wey don show 4 d imprecise printing of d letters on d washers. I no get mathematical proof, but I know say if I print 24 words with d Blockmit jig, d result go worse.


More anti-tamper ideas

How we go tek seal d seed na very complicated mata. My rather patchy and artsanal method no gree satisfy me.

One idia fit de wey we go mek d container an anti-tamper level.
Seed Capsule

A plastic housing wey go protect ur seed.

As u do am, even a potential saboteur fit print his container. D suggestion na always d same: pek we de creative wit colours, writings, and details wey anybody supose know.

Another exciting method na d Entropy Seal, wey b non-commercial prototype 4 "random entropy seal".



A similar implementation is that of BitBox TeP.




E get also d artisan version, wit a bag of beans, legumes or odas, wey dem explain 4 here by @dkbit and @o_e_l_e_o:

Sorry, I no de smart enough to understand how dis supose work. Also, u no need to de take care of seed, but now u need to take care of a picture?

Cary plastic food container wey de transparent.
Fill an rich half wit mixed rice, grains, legumes, seeds, confetti, coloured ball bearings, etc.
Put ur seed inside.
Fill d oda boxs wit more of weting we talk b4 till e beging de overflow.
Force d lid on, sealing everything wey de inside tightly so dat e no go fit move around.
Tek photos of d box from a plenty angles.
Hide d box.

Wen u go back to find d box 4 future, u fit compare d photos wey u te dat time and how e be now. If anybodi don open am to access ur seed phrase, all d grains or whatever wey u used go don move around and e go look different to the photos.

A variation 4 d theme na to use some glitter nail polish.

U no want mek ur Laptop Tampered Wit am? Just Add Glitter Nail Polish



4 d two cases, d concept na d same: u go create random patter, wey de go compare wit wetin u find 4 ur front, as dis one no prevent d attacker 4rom getin d seed, bt at least, clear evidence de wey show say na theft.
D value 4 dis khin DIY solution na dem no fit deny am. D comon thread 4 dis khin guide na d concept of "security by obscurity". As we de buy a "TeP" or "Entropy Seal", u go talk am say u want a "container 4 somtim precious" 4 people wey de manufacture am and d courier.
Instead, no body go ask d right question wen dem wan buy beans or glitter.

D concept de interesting: still, d issue b say e no de possible to get an anti-tamper mechamism enclosed 4 d object imself, wich mek d solution no de possible. E go de perfect if e go de possible to put inside d "Entropy Seal" a photo wey de show how d parter wey de d ld go be.
Instead, anybody wey Don verify d correctness of d seed go get d top and d image mek him check d pattern wey "testifies" d correct entropy correspondence. D problem wey de b say to get d picture no de always de possible. Also I no de lik mek I dey get app: wetin go happen if d app no de updated for som time and dem remove am 4rom app store? set we don lose d right verification be dat?

D last way (alternative) na anti-tamper bags wey Shift Crypto de sell too.
Tamper-evident bags

Our tamper-evident security bags de kampke , bt d critical element na d security tape wey de allow us to securely seal d pack wit im content.
D security tape get som khin unique features wey go mek u detect any attempt to open d tamper-evident bag sharperly.

Dis onece ma enveloped we get seals wey de show d opening, or attempted opening, 4 plenty different checks and markings.


Here na plenty lins wey de inspired dis work:

• My DIY Cryptosteel Capsule
  
  
  A guide to mek a container 4 d seed by yourself.
  
• Fabrica tu mismo una billetera fría con arandelas [ENG: Build 4 urself a cold wallet wit Washers]
  A beta guide wey giv a great source of inspiration 4 creating dis thread. na 4 Spanish, I no sure sey problem go de 4 understanding wetin de d content.
  
  I de genuinely impressed by d quality of d print wey de dis guide, wey I neva still get s guide-mek una no worri, na just aesthetic consideration. I even suppose practice som of d trickery wey de involved 4 stamping.
• n0nce's Steel Washer Backup jig
• Security through obscurity

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Conclusions

I get joy as I de write dis guide.
I must talk am say I lyk d tinkering aspect 4 dis way of securing d seed phrase.
Also, I tink d act 4 securing multigenerational wealth wit sledgehammer and anvil de funny.

I no de sure dis way 4 storing seed phrase na 4 everyone, as I tink d right combination of threats na dis tins:

• Personal threats: very low. U go need trust sombodi to recover ur funds or help dat desired pesin to recover d funds.
• Technological threat: high. If u no de worri about technology, present and future, e no get any meaning 4 doing dis.
• Legal threat: very high. Bitcoin na financial sovereignty: if u opt-out 4 d financial system and u com de d all process, u no go fit trust anybodi to care of d custody of ur own seed phrase.

So, please mek u assess ur situation very well b4 u go feed sats to ur physical seed phrase wey de secured by some washers!

Dis guide don de initially published 4 Italian Board:
[GUIDA] Backup Fisico della propria SeedPhrase su rondelle


[TOP]
Translators contribution: The translation for this topic was done by Davidvictorson and Hyphen(-). Davidvictorson translated from Introduction to Stamping Verifying and Sealing the Seed. Hyphen(-) translated from Some final tips to Conclusions. Both users reviewed and approved the final translation

[Agbe]

Translated Topic in Pidgin Language; Governs dey come 4 traders!
Original Topic: Governs are coming for traders!
Author: GazetaBitcoin

Hey,

Wen I don think mani about am, I decided 2 translate dis write up of mine 4 di benefit on di oyibo pple wey dey di world. Di writing bin dey Romanian house of di forum, bt I think di information dey gud nd he go go around 2 mani pple wey im go reach, in order 2 avoid being subpoenaed by governs or oda law enforcing mechanism.


Autor: GazetaBitcoin
Topic original: Guvernul vine! ANAF si DIICOT ii urmaresc pe traderi


Dis won no bi joke o!
 I don talk am b4 with a lawyer friend, who don tell me about di mata (about traders being pursued by Romanian govern). 2 be more specific, authorities dey investigate some of his clients, which have 2 explain some plenty money dem transferred 2 their bank accounts.

Di traders come 2 di lawyer as they dem no know how 2 do their trading benefits. Nd di lawyer dey ask me if I go help am anyhow.

Basically, in Romania, di mata dey bad dis year afta di law 30/2910 was issued. Dis law wey about collecting di profits, adding di profits 4rom crypto, bt di wey dey carry out di e no dey pursue those pple wey no dey pay taxes, bt dem dey pursue those with big amounts transferred into di bank accounts.

I don tell ma friend dat make im tell im clients 2 get any possible log 4rom all di crypto exchanges wey im dey work with, in order 2 prove di acquisition price, bt na di marketing price. Anoda wisdom was 2 directly tell di exchanges, who dey act as companies nd who dem granted by di law 2 act as money processors, nd 2 ask dem extrasses with di transactions. If e dey possible, stamped wons. Since di exchanges dey use KYC nd AML, dem go also offer official papers wen dem need.

Ma friend tanked me 4 my ideas nd im come say im go try these methods.

TL;DR: governs dey come! Make u dey aware!
I never be fan 4 centralized crypto exchanges, as dem dey embrace exactly di opposite of di ideas behind Bitcoin: decentralization nd pseudonymity. Nd if everybody dey use Bitcoin nd di oda cryptocurrencies instead of our kwantri money (dat won means be sae “cryptonians” go realize only crypto-2-crypto transactions), den nothing go exist in any taxable earning. Bt nobody (or, almost nobody) acts dis way. Wat remains bi sae,  di centralized exchanges maintain di idea of trusted third party, concept wey Satoshi need am 2 remove am finished kpatakpa. Nd, if im go be used again di way dem do am 4, Bitcoin go remove any third party wey dey.

Mani of di users go 2 a centralized crypto exchange bcoz dem dey convenience, bcuz dem no understand di risks or bcoz dem lack di knowledge abt their alternatives.
1. Convenience dey understandable. Basically, u'v ur funds in a wallet (which u no own actually, as di exchange dey true 4 di owner of di money) nd u go access dem anytime. Nd u go make transactions also anytime u need am.

2. Risks, however, dey many. “ur” exchange wallet e no actually belong 2 u, bt 2 di exchange. Why? Bcos u no have di private keys. See wat happened with Mt. Gox, Binance (twice), Criptsy, Cyptopia, Bitfinex etc. Di same thing happens also if di owner of di exchange e don decides an exit scam. Wen dem never get di private keys, u no own di funds.

Anoda risk is determined by di fact dat di centralized exchanges act as banks nd collect customers’ private data, being forced by governs 2 hve implemented KYC nd AML (Know Your Customer nd Anti Money Laundering) procedures. Nd di govern dey hungry well well 4 all di entity 4 personal data. Giving ur secret info, 2geda with being totally careless abt ur own privacy / anonymity will only put in di frying pan, sooner or later, all those who used these “services”, as it happened with Coinbase clients. If di users hve an evidence of all di transactions nd if dem paid their taxes, dem go bi OK. Besides, everything go bi OK also with those who bought at a higher price nd sold at a lower prices, thus without earning any profit, bt dem go present these evidences as well 2 di authorities. However, even di “law abiding citizens”, go certainly no go like all w bi investigated by di authorities.

Di major problem na 4 those who no hve such evidence nd with those who no pay di taxes. These ones, 4 di governs, go appear as criminals. As tax evazionists.

I agree, di question “if state no accept cryptocurrency as a form of money, why  dem go tax am?” Na di gud won bi dat. Di following na di answer: bcuz it generates earnings. Maybe, if there go bi such thing as trading leaves, even di  profits 4rom selling leaves go bi taxed.

Thus, we get 2 di question “how we go preserve our privacy?”.

3. Lack of knowledge abt alternatives na won of di konkon 4 wat di crypto newbies head towards centralized exchanges. Bt alternatives dey exist.
Di number 1 solution dey represent di peer-2-peer decentralized exchanges, where di transactions dey performed directly between di users, dem dey fully unknown, nd di role of di exchange dey merely 2 help users 2 contact each oda, without holding their money / private keys.
Besides, di cash-in / cash-out Bitcoin ATMs may bi an alternative, bcoz in dis case we no need 2 reveal personal information. Indeed, these terminals e no use a friendly price 4 buying / selling crypto. Bt privacy e get price, though.
Finally, u can perform peer-2-peer transactions with piple u know, or with piple with high reputation in di field, bt also with pesens u don’t personally know, similar with Amazon / Ali Express transactions.

All of di above dey suggestions 4 those willing 2 exchange crypto with fiat money. Only wen doing dis intervenes di pseudonymity nd di exposure. However, while di transactions dey entirely crypto-2-crypto, di anonymity e fi bi preserved beta. Apart 4rom, all of di above e no dey represent an advice 4 how 2 avoid taxes. Every citizen go pay im taxes. Bt working with centralized crypto exchanges e no dey just exposing di users 2 governs, bt also endangering their funds.

I dey close am here by admitting di contribution of centralized crypto exchanges in raising di awareness about cryptocurrencies. Perhaps, without dem, fewer piple go e don hear about Bitcoin nd oda cryptocurrencies. Di exchanges e don overwhelm di role inside di ecosystem. Bt still, dem fit bring huge prejudices. Now, whoever chooses using dem, go do it by fully understanding how dem work.

Edit: just afta writing di topic it came into mind anoda example of traders being chased by governs.

Also in Romania, afta di first crypto exchange wey closed BTCxChange, di owner made di paperwork 4 fully shutting down di company. Practically, in such a case, di site (operation) e dey close, bt di company still dey exists in di registries until I'm go fully closed.

Max Nicula, di owner if di defunct BTCxChange stated recently dat even 2day, 1.5 years afta closing di exchange's site, im no fit close di firm bcuz ANAF (di Romanian version of IRS) started an investigation wen im requested 2 close di operations. Wat dey very important, im asked 2 provide 2 di authorities all im customers names nd data, dis also happened at Coinbase. In dat case, di company was requested forced 2 release di clients' data in order 2 function, while in dis case di company has (still) 2 give out dis data in order 2 bi closed.

Even many intriguing dey dat Coinbase, where de applied a decision of a Court, in BTCxChange's case ANAF came with only a formal request. Max Nicula said im no keep di clients' data after dem close dey site, therefore di investigation still dey go on, di company never closed, bt dat won na anoda story.

Wat dey important dey dat Coinbase history repeats nd I suspect dem dey hundreds of oda similar cases worlwide.

Edit 2: 4 more dangers associated with KYC please read also a topic which dey complementary 2 dis won: Why KYC dey extremely dangerous – nd useless


Translations (in chronological order):

• Română: Guvernul vine! ANAF si DIICOT ii urmaresc pe traderi, translation by GazetaBitcoin

[GazetaBitcoin]

I thank u Agbe 4 every thing u do in translating dis topic of ma own! Dis na di first time wen a writing of ma own bin dey translated in ur language nd I dey happy well well 2 see dat! I dey very happy 2 see ur words translated in different languages, di thing dey give piple awareness abt different topics.

U select a very interesting topic, wey dey tell us how our leaders come dey strong head with bitcoiners. Na di thing wey happened in Romania nd oda kwantries 2. Secret e no dey anywhere: Leaders no like Bitcoin bcos dem think sae bitcoin go remove dem 4from power nd give am 2 di piple. Di konkon mata be sae, di mata go bad well well.

We go only think dat our fight 4 freedom -- through Bitcoin -- go help us be free of governs' nd banks' slavery! Di more we use am, di more power im go gets. nd di more powers im gets, di more powers im takes away 4rom governs nd give am back 2 us.

Be dey wise, be anonymous nd use Bitcoin!

[Davidvictorson]

I thank u Agbe 4 every thing u do in translating dis topic of ma own! Dis na di first time wen a writing of ma own bin dey translated in ur language nd I dey happy well well 2 see dat! I dey very happy 2 see ur words translated in different languages, di thing dey give piple awareness abt different topics.

U select a very interesting topic, wey dey tell us how our leaders come dey strong head with bitcoiners. Na di thing wey happened in Romania nd oda kwantries 2. Secret e no dey anywhere: Leaders no like Bitcoin bcos dem think sae bitcoin go remove dem 4from power nd give am 2 di piple. Di konkon mata be sae, di mata go bad well well.

We go only think dat our fight 4 freedom -- through Bitcoin -- go help us be free of governs' nd banks' slavery! Di more we use am, di more power im go gets. nd di more powers im gets, di more powers im takes away 4rom governs nd give am back 2 us.

Be dey wise, be anonymous nd use Bitcoin!

Shew, GazetaBitcoin you too much. I shock when I see say you dey write for pidgin. The thing sweet me for belle I nor go lie. I even gats check your profile becos I come dey think say e be like say we get Nigerian wey dey disguise. Well nothing spoil sha. I like wetin Agbe don do. Me sef don look through your topics and I go try still translate one or two into our Nigerian Pidgin. Una doh

[GazetaBitcoin]

Hey Davidvictorson, tank u 4 di gud words u tok!

I go tell u di truth nd I go admit dat, na Agbe helped me do am with a proper formulation any how, Me, I no bi Nigerian I bi Romanian.

Nd yes, Agbe don do a wonderful work nd im get all my respect!

Tank u 4 ur interest in translating ma topics! U go fit pick any one u like, of course. U go follow di rules wey I specified in ma topic nd send me a preview b4 posting di translation (dis na 2 make double-check b4 u go post am). Nd, of course, if u need any support 4rom me while working on a translation, I go always available.

[Agbe]

Translated Topic in Pidgin Language; Cryptocurrency nd digital money Palava by di state
Original Topic: Cryptocurrency vs digital money issued by the state
Author: GazetaBitcoin



A specter dey haunt di present world, di specter of crypto anarchy - Tim May

I dey start dis topic as na "part two" of anoda topic of mine - Governs dey come 4 di traders!, im sef follow, 2 influenced by reading (di title of) dis thread: y di world governments e no dey use cryptocurrencies?.

Governments e no wan 2 use cryptocurrencies; at least no be even decentralized ones. Bcos dem need 2 control everything - 4rom personal information 2 data nd money. U no go fit do anything without a government issued ID - u no go go school, u no go go drive car, u no go go marry nd so on. Governs needs all their citizen's data, including their financial information. 4 dis reason governs try many ways 2 eradicate cash money nd switch dem with credit / debit cards. Cash money e no hard 2 tracked, while digital transactions e deh always stored by di banks, wey dey do doing na government arms, providing di leaders all di data dey ask abt piple.

Knowing all di hype abt crypto, understanding dat piple deh  head towards using digital currencies, governs don start, with bigger or smaller steps, 2 think abt offering such money 2 their piple. Bt no bi decentralized cryptocurrencies, wey dey anonymous or pseudonymous -- dem wan 2 offer centralized cryptocurrencies, a kind of money wey go be tracked, associated with real names nd wey get value 2 determined by di govern instead of di free market. Take 4 example Venezuela's Petro, Russia's CryptoRuble, Japan's J-coin, China nd so on.

Na true, state-issued digital currencies dey totally against 2 cryptocurrencies nd di differences btwn dem wey make so many, dat difficult 2 count all of dem:
- cryptocurrencies wey dem do am 2 liberate piple 4rom di slavery imposed by banks nd governments, removing di middle man nd facilitating peer 2 peer transfers; digital currencies issued by governs na based on trusted third parties (banks), dem don designed am 2 continue 2 enslave piple, 2 give dem dem illusion of freedom, wey be sae dem dey oppressed;
- cryptocurrencies dey provide anonymity / pseudonymity nd di users na their true owners, as dem dey hold their private keys; digital money invented by governs no go offer private keys 2 piple, go be trackable nd, highest won, e no go be mineable (instead, im go be held by di banks);
- (most of) cryptocurrencies get a particular number of coins, in order 2 avoid inflation; digital money issued by governs e no go get particular number, as di governs dey find inflation nd no deflation, bcuz inflation dey indirect tax supported by many piple even without being aware of. E dey more hard 2 force piple 2 accept direct tax, compared with imposing dem an indirect tax; in case di indirect tax e no even realized, governs' work e dey easier;
- cryptocurrencies' value is determined by the free market (or, at least, it should be; let's not think now abt whales); governs' money e get value established by di State.

Nd di list go go on.

As e be like dis, di only thing in common 4 cryptocurrencies nd di digital currencies palava by State na dat both wan 2 get rid of fiat money. Bt, obviously, 4 totally different reasons: cryptocurrencies wan 2 change di actual system, wey deh corrupt 2 di roots, nd di governs wan 2 keep di system, bt with a different financial instrument, wey go give piple di fake thinking of using cryptocurrencies.

Dis future wey forseen a long time ago by di Cypherpunks, di Founding Fathers of crypto anarchy. If na u dey among those who started 2 refuse governs' corrupt fiat money, no let urself tricked into using a digital currency issued by di State!

Arise, u no  lose anything bt ur barbed wire fences! (Tim May, Di Crypto Anarchist Manifesto, 1988)

[2 be continued]

[GazetaBitcoin]

Tank u Agbe 4 translating ma topic into ur language! I dey happy sae anoda topic of ma own has been translated in ur local board!

Nd I see am sae im go dey help many piple wey wan kno abt Bitcoin, im history nd help dem 2 understand dis phenomenon more easily.

Di current topic sheds light on di palava many countries dey face as govts start doing CDBCs. Many go fall 4 di fact dat di state go offer cryptocurrency 2 di piple, bt dis topic go help us understand dat no govt go ever bring cryptocurrency 2 e citizens. Every govts dey find how dem wan control di piple, nd not 2 help dem 2 get their freedom. So take dis topic as a warning story. Di time of CDBC dey come nd all of us need go ready not 2 be fooled by di govts!

[sokani]

Translated Topic in Pidgin Language: Governs try to limit de public to access of information and freedom long long time ago
Original Topic: Governs try to limit access of public to information and freedom since ages
Author: GazetaBitcoin


Today piece of history information come as a sequel to my other posts 1, 2, and 3.

Governs no wan make de public fit get information and dem don do everything wey dem fit do kpata-kpata to stop am long long time ago. The popular example na de invention of de printing press for 1884, as e come give big progress for information to dey easy to access and to make people dey free. After Gutenberg invention come enter public eye, de govern no fit hold again de way people fit get information as dem fit translate writings, books and manuscripts for different languages and spread am for different cultures. Na since dat year wey decentralization start. In 1517, de 95 theses wey Martin Luther write dem bin print am for thousands of copies and dem translate am for different languages and wetin him talk about de whole continent come know. As a result of him actions, de church come exclude am as their member. But without him and without de printing press, e dey sure say de protestant reform movement for fail.

Na person wey get information na him get power, and in general na de elites - governs, agencies, law enforcement na dem hold information. Or de church as e take be for Martin Luther case, and dem no wan make the public get am because e go mean say dem don lose power.

As we come dey enter modern times, but still in de olden days. De time of Cyberpunks, John Gilmore wey be one of dem bin get issue with de NSA. Or maybe I for write say de NSA bin get issue with am? One of de okponge victory of information against oppression na Gilmore wey lead am for 1989, wey him expose to de public secret document. De author of de document bin dey work for Xerox, and NSA bin specifically ask Xerox to destroy de document. John Gilmore bin no gree make dem suppress de information and come post de document for internet. Naso, people come sharply download am in thousands, and de kata-kata between Gilmore and NSA come start.

In 1992, another big kata-kata bin take place between John Gilmore and NSA. For obvious reasons (as e relate to suppression of free information), de manuscripts of William Friedman - as people regard am to be de grandfather of cryptography in USA - dem been classify the document, though na de time of WWII him write am. Gilmore no gree dis time, say Friedman work suppose dey available to any person wey dey interested. So him carry NSA go court and him come talk say de reason him request for dem to declassify the book na because of de Freedom of Information Act. Naso, NSA no gree respond to him request, las las na for court of law dem settle de mata. After dat, him come manage to find Friedman book for public library. During the court case dem bin tell am say if him no give de book to de govern, dem go accuse am of espionage wey go fit lead to 10 years in jail, as him bin dey in possession of classified materials. NSA no end there. Dem try to find any other "sensible" materials wey dey for public spaces. Gilmore tell de judge say wetin him find already dey public since de book dey for public library and na de same time wey him tell de press about the whole case. After small time, Aegean Park Press come print de book.

Gilmore case come become public de moment de govern back-off. Dem drop de charges and dem declassify de manuscripts. John Gilmore win, de people win, as public information remain for public hands, de way e suppose always be.

De fight for freedom of speech, for privacy and to make governs irrelevant start long long time ago. Now e dey our hands.

[GazetaBitcoin]

Thank you sokani as you translate dis my topic. Dis na de third article wey de reach de Nigerian community and I dey more than happy to see my words as you translate am in your beautiful language 😊

Dis topic torchlight small history information wey go help us understand how e bin take dey difficult to use cryptography few decades ago. Time don pass, dem no ban cryptocurrencies, still government dey use many tricks to stop cryptocurrencies. But as e take dey for cryptography, all their efforts no go work. As no person fit stop cryptocurrencies for olden days, no person go fit stop am today.

[MeCsc]

Translated Topic in Pidgin Language: Real Stori--Watin you go see wen person theft ur identity ||Comot hand from CEXs oh
Original Topic:What happens when your identity is stolen -- real story || Avoid CEXs!
Author: GazetaBitcoin


Watin u go read so na real stori of one Romanian guy way cor dey see shege everyday, after person thief he Identity. Nor b say he dey use centralise exchange but d way life tel show m shege e cor b like say hackers thief he identity from centralise exchange or any other platform. Dis stori na stori way go make you shine your eye. Everyone way dey use centralise exchange need to know say hackers fit hack d exchange any time and nor be only money dem fit collect bcos dem fit thief person personal identity and cor use against d person or d worst, be say d hackers fit go sell d person personal information for dark web where criminals fit buy m btw 1-5$ and d criminals fit cor go meet d real person of the information...


One new stori from d Romanian newspaper Adevărul na talk about d stori of C.T. (36 years old), way dey stay Germany for the last 8 years.

He main hustle na driver in Mannheim but he still be vlogger and cor be like say d thieves of personal information cor go collect him name.

D matter start 2018 wen he dey drive go he house from Romania to Germany and Police cor arrest m for Hungary after he stop for normal check up, then d Police cor tell m say he dey part of d thieves way dey steal cars. He name way come out from police computer show say d guy na thief and he thief 22,000 Eur car but d guy be para for dem and try to explain say he nor get hand for d matter but d police cor tell m way make he call one Court for one city wa he never go b4.

Months later, wen he cor dey Germany, Romanian Police cor call m say person theft he personal information. They tell m say they know d thief but they still need m to come meet dem for Romania for some declarations. Wen d man cor go meet d Romanian police, normally he expect to fill forms but they still come carry him fingerprints, cor take m pictures, cor measure he height and make do lie-detector test.

Since then, d matter cor somehow worst for m. Everytime he dey drive go Romania, Custom Officer always dey stop m for road. Everytime way dis thing dey happen he dey always dey ashamed bcos dem go dey look m like criminal and na everytime way he dey go Romania he dey do dis thing bcos them dey see m as person way runaway comot for country because of bad way d person do.

Small time Austrian Police cor tell m say dem don arrest and imprisoned d person way thief he personal information.

But d matter nor end for there, in February dis year he cor get another issue, dis time with German Police. One day, around 6 in the morning, wen he dey work, he neighbour tell m say Police dey he house say dem dey look for m, bcos he thief 38,000 EUR boat. So d man believed say another thief don dey use he personal information again. Augsburg Police na cor look into d case dis time. He go there and he cor see d Augsburg police get plenty of he data, but d picture na another person dey. D Police cor dey ask m where he dey one day like dat for 2022 and he cor show them prove where he dey dat day with he phone for he Google account location history.

Lawyers don advice m to change name but he dey avoid dat side. For d end of d stori he cor dey talk say he dey fear make he nor go find out say person don go use he name carry loan or say dem go dey arrest m everywhere he dey go.


D stori na sweet one abi. E nor matter how those thief tel dey collect d man personal information. Watin matter na be say dis thing fit happen to anybody way dey use centralised exchanges. Hackers fit collect your data. Even d exchanges fit sell m sef, just as Coinbase first do. You see say we nor dey talk about exchange way b like say their ways nor clear, way come from country way still dey grow but one of d biggest exchange for d world, dem catch m dey sell customers data.

So You go still like to use CEXs?

[sokani]

Translated Topic in Pidgin Language: De Crypto Anarchist Manifesto - Make all of us read am
Original Topic: The Crypto Anarchist Manifesto - We all should read it
Author: GazetaBitcoin


Following de bitmover topic, another okponge article wey we must read na The Crypto Anarchist Manifesto wey Tim May write.

De essay first dey public in 1988 (4 years before Eric Hughes' article A Cypherpunk Manifesto) for de Crypto '88 conference and e describe de extraordinary vision Tim May get over some aspect wey come dey real 30 years after.

De manuscript explain how technology wey dey center on cryptography and reputation system go change de world as we take know am, including governs, taxes or economic control:

"Computer technology dey on de verge of providing individuals and groups wit de ability to communicate and interact wit each oda in a manner wey dey completely anonymous. Two persons fit exchange messages, conduct business, and negotiate electronic contracts without dem ever knowing deir true name or de legal identity of each oda. Interactions over network go dey untraceable, by de extensive re-routing of encrypted packets and temper-proof boxes wey come implement cryptographic protocols in a way wey e dey nearly perfect say dem no go fit temper wit am. Reputation go dey very important, asin very important in dealings dan de credit ratings of today. Dis development go change completely de nature of government regulation, de ability to dey tax and control economic interactions, de ability to dey keep information secret, and e go even change nature of trust and reputation".

We go certainly appreciate May's vision in crypto wit Jules Verne's vision for science-fiction.

Wit just small words, him talk so many actual technological developments, like smart contracts, Tor, Bitcoin technology or de reputation system (use for example on BitcoinTalk for de Merit and Trust systems).

De reference to de "True Name" fit dey inspired from Vernor Vinge novel. "True Names" (1981), wey be fine piece of art.

Him also foresee de appearance of de black market and de governs fight to stop information to dey reach de people.

"De state as usual go try to slow or stop de spread of dis technology, say na national security concerns - de use of de technology by drug dealers and tax evaders, and de fear of societal disintegration. Many of de concerns go dey valid, crypto anarchy go allow de trade of national secrets freely and go allow de trade of illegal and stolen materials. Anonymous computer market go even make possible de repugnant markets for assassinations and extortions. Various criminals and foreign elements go be active users of CryptoNet. But e no go stop de spread of crypto anarchy".

De essay end wit "Arise, you no get anything to loose but your barb wire fence!" Americans really know de barb wire fence, na part of deir history. Dem be separate de western cities from de cowboys with barb wire, wey want freedom come dey cut de wires. Na de call to fight against de governs corruption and oppression. Against secret agencies effort to shut down information.

Make all of us continue Cypherpunk work and dey fight for freedom!

[GazetaBitcoin]

Thank you sokani as you translate dis my topic wey describe how de state oppose, cryptography, cryptocurrencies and access to information. Dis essay na wonderful piece of work from Tim May and e dey amazing to see wetin him talk 30 years ago don become part of our reality.

For people wey neva read de manifesto before, I go suggest make una read am. E dey short and e make a lot of sense.

[Nheer]

Translated Topic in Pidgin Language: Why Reputation de Important for Free Market
Original Topic: Why Reputation is Important on the free Market
Author: GazetaBitcoin


Plenty users join dis forum for trading activities. And d marchandise de vary - physical goods, digital goods, cryptocurrency exchange, auction, collectible, computer equipment, mining equipment and so on.

D forum de act as free market and the good reputation de important for successful trading. As Tim May talk more than 30 years pass, "Reputation go be d main importance, e go de more important for dealings pass the credit rating wey de today sef".

For Bitcointalk, d Reputation for inside trading de presented by d "Marketplace trust", which na score wey de show your positive, neutral and negative feedback. If a trader get bigger positive trust score, e for mean say he de trustworthy. D opposite na true also: if a trader get relevant negative trust, make una avoid am.

D system de very complex pass like that, but dis one no be d point of the topic. However, two important aspect de wey i suppose mention:
- for negative trust feedback, for this forum e get also a "flag system" wey we fit de use for more better explanation about a trader's untrustworthiness.
- Although dem bin design d trust system for trading activities, forum members de give feedback based on wetin dem de think about other piple, thus influencing the trust score. Thus, the user’s wey de interested to trade with another person suppose read carefully all the feedback about the person so im go get clear impression about who the person wey him wan follow trade be.

As i mention for up before, the topic no be about the trust or flag system but na about the importance for getting strong reputation. As the reputation take big na so the chance of d person to do transaction de take big. Also d opposite na true: make you try scam abi make you violate contract de scatter reputation

Generally, people wey de inside trading - e no matter if dem be seller or buyer - dem de always find smooth successful trades. And the general idea be say if person get good recommendation (in this case - feedbacks), the chances wey dem go fit scam am de low. Na why, a trader wey wan sell a product de get interest for buyer wey get feedback (and also a good trust score), wey dem talk say him de pay fast fast (for example). A trader wey wan buy de interested for seller wey get good feedback wey dem talk say him de send the product as him don agree to do, and say him product de land fast, e de de good shape and e no de get any damage etc.

Another problem wey dey happen well well na im be say: generally if the parties no get (two of them) good reputation, dem de ask this kind question: "Who go first send (the money / the goods)?". Basically, the one wey get reputation go ask the other one to first send, as him no fit prove him trustworthiness. If the other one no fit take the risk to first send, the deal no go happen be dat (make we no mention how the situation go be when the two parties get bad reputation). This problem e get very lower chances of happening if them get implied two parties wey get good reputation - for this case e de likely non of them go mind to send first.

Reputation na im de define us as individuals for the society and as a consequence, in trading activities.

Honest people and traders suppose de very interested in proving their trustworthiness for the free market, thus e go de able to easily, smoothly and successfully transact their merchandise.

However, if the trader na new member for here he / she suppose perform some steps, so him go fit gain trust from other people for trading activities. them no de build Reputation overnight, abi over month. E de take time to build strong reputation or make other people sabi your (user)name say you de “trustworthy”. But once a trader don get good reputation, the reputation don certify am say him be trustworthy merchandiser.

E get many ways wey you fit start trading career for free market. Maybe a new member fit start, as a seller, wey him go first send his goods and then him go de wait for money after. Or, if him be buyer, him go first send money and then him go de wait for the goods after. But him must choose carefully the other party and make sure say the party na person wey get good reputation, thus e go minimize the risks of being scammed. If the trade de successful, make u follow am with another and another and in time, with easy steps, the career for trading and the good reputation go de build.

As d talk wan end, Bitcointalk de even more complex when e reach trading mata. Besides the trust score and the feedbacks, a trader fit also consider the other party’s rank and merits wey him don earn so far. No be to look at the rank and merit alone, but carry everything together with the trust score. If a user get high rank or him don earn plenty merits before, these na d sign say d person get good intentions. E no de always be true, sha. But these aspects together with strong positive trust score de show say d person de less likely to scam people.

Everybody suppose take reasonable steps. But dem go put am for mind say to be trusted you must get good reputation. And as you get good reputation you for don prove am (many times) say you de honor your agreements.