Bitcoin Forum
July 18, 2019, 12:07:56 PM *
News: Latest Bitcoin Core release: 0.18.0 [Torrent] (New!)
 
   Home   Help Search Login Register More  
Pages: [1] 2 »  All
  Print  
Author Topic: Bitcoin price insurance  (Read 1666 times)
wangxinxi
Hero Member
*****
Offline Offline

Activity: 826
Merit: 1000


Founder & CEO of Coinut.com, Litecoin Core Dev


View Profile WWW
December 26, 2014, 08:36:51 AM
 #1

Most of you posses some Bitcoins. If the price goes down, you lose money. Do you need some kind of insurance that will compensate you if the price goes down?
1563451676
Hero Member
*
Offline Offline

Posts: 1563451676

View Profile Personal Message (Offline)

Ignore
1563451676
Reply with quote  #2

1563451676
Report to moderator
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
zetaray
Hero Member
*****
Offline Offline

Activity: 658
Merit: 500


View Profile
December 26, 2014, 08:43:24 AM
 #2

Their is the need for theft insurance, not insurance for bitcoin price fluctuations. Prices going down is usually a time to buy bitcoin.

.CryptoTotal.com.
                              l█████████▇▀
                              ████████▇▀
                              ███████▇▀
                              ██████▇▀
                              █████▇▀
                              ████▇▀
                              ███▇▀
                              ██▇▀
                              █▇▀
                              ▇▀
▇▇
▇▇

Express.Crypto.Checkout
Accepts Multiple Cryptos
Worldwide Shipping
Foxpup
Legendary
*
Online Online

Activity: 2618
Merit: 1527


Vile Vixen


View Profile
December 26, 2014, 10:06:27 AM
 #3

Do you need some kind of insurance that will compensate you if the price goes down?
We already have some kind of insurance against that (you should know, you're providing it). What we need is a better kind of insurance, ie, vanilla options. Get to it.

Will pretend to do unspeakable things (while actually eating a taco) for bitcoins: 1K6d1EviQKX3SVKjPYmJGyWBb1avbmCFM4
wangxinxi
Hero Member
*****
Offline Offline

Activity: 826
Merit: 1000


Founder & CEO of Coinut.com, Litecoin Core Dev


View Profile WWW
December 26, 2014, 10:24:35 AM
 #4

Do you need some kind of insurance that will compensate you if the price goes down?
We already have some kind of insurance against that (you should know, you're providing it). What we need is a better kind of insurance, ie, vanilla options. Get to it.

Haha, thanks. We will probably release vanilla options by the end of Jan. I just want to know whether people need it.  Grin
Foxpup
Legendary
*
Online Online

Activity: 2618
Merit: 1527


Vile Vixen


View Profile
December 26, 2014, 10:54:53 AM
 #5

Haha, thanks. We will probably release vanilla options by the end of Jan. I just want to know whether people need it.  Grin
Yeah, I just found your other thread about that, thereby making my earlier response seem redundant. I've spoken on numerous occasions about the need for vanilla options, and now you're making me put my money where my mouth is. I'll need some time to think about this.

Will pretend to do unspeakable things (while actually eating a taco) for bitcoins: 1K6d1EviQKX3SVKjPYmJGyWBb1avbmCFM4
Amph
Legendary
*
Offline Offline

Activity: 2226
Merit: 1003



View Profile
December 26, 2014, 11:38:33 AM
 #6

the insurance against that is to hold, like always
Q7
Sr. Member
****
Offline Offline

Activity: 448
Merit: 250


View Profile WWW
December 26, 2014, 01:37:17 PM
 #7

If a person has 1000 bucks, buy 250 bucks worth of bitcoin. The remaining balance is your insurance *if the price goes down*. If it does happen, use another 250 to buy more. whatever balance remaining is still your insurance in case of a drop. As it goes down further, use that to buy more until you are dry  Grin

It sounds silly because if you don't believe in any of these insurance thing, then use the whole of 1000 to buy at the spot price.

Barabbas0
Newbie
*
Offline Offline

Activity: 28
Merit: 0


View Profile
December 26, 2014, 03:35:28 PM
 #8

If a person has 1000 bucks, buy 250 bucks worth of bitcoin. The remaining balance is your insurance *if the price goes down*. If it does happen, use another 250 to buy more. whatever balance remaining is still your insurance in case of a drop. As it goes down further, use that to buy more until you are dry  Grin

It sounds silly because if you don't believe in any of these insurance thing, then use the whole of 1000 to buy at the spot price.

You really have no idea how hedging works, do you? I, for one, would value BTC derivatives. At the very least, I expect a lot of attention to married puts.
Undermood
Legendary
*
Offline Offline

Activity: 963
Merit: 1000



View Profile
December 26, 2014, 03:37:04 PM
 #9

Their is the need for theft insurance, not insurance for bitcoin price fluctuations. Prices going down is usually a time to buy bitcoin.
some business dealing with bitcoin maybe need this service to lock their profit and eliminate the price fluctuation risk specially when bitcoin is under down turn!

             ╓▄▄▓▓▓▓▓▓▓▓▓▓▄╖,
         ,▄██▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓█▄,
        ▄████▀▀░░        ░╙▀▓███▓,
      ,███╣▒▒▒░░╓╖╖╖╖╖╖,░░░▒▒╢▓▓▓[
     ╓▓██▓▓▓███▓▓▓▓▓▓▓▓▓▓▓▓██▓╢▓▓▓▓
    ╖▒▓▓▓▓▓██████▀▀▀▀▀▀▀██████▓▓▓▓▒░,
   ╫▒▒▓▓▓▓▓▓▒               "▓▓▓▓▓▓  ╟
  ▐▓░░░▓▓▓▓▓▓╖              ▓▓▓▓▓▓░  ]
 ,▓▓░░░░╙▓▓▓▓▓▄           ╓▓▓▓▓▓▓`░░ ▐▓▌
 ╟▓▓▌░░░ ╙▓▓▓▓▓▓         ╓▓▓▓▓▓▓░░░░╓▓▓▓
 ╟▓▓▓▓   ░`▓▓▓▓▓▓,      ╟▓▓▓▓▓╜░░░░╓▓▓▓▓
 ╙▓▓▓▓▓,░ ░ ▓▓▓▓▓▓╖   ,▓▓▓▓▓▓▒▒▒▒░╟▓▓▓▓▌
  ▓▓▓▓▓▓╖░   ╙▓▓▓▓▓▌ ╓██████▒▒▒▒▒▓▓▓▓▓▓`
   ╙▓▓▓▓▓▌  ░░╙▓▓▓▓▓▓█████▓▒▒▒▒▒▓▓▓▓▓▓
    ╙▓▓▓▓▓▓  ░░░▓▓▓▓▓▓███▓╢╣╢╢▓███▓█▀
      ▓▓▓▓▓▓@░░░░▓▓▓▓▓▓▓▓▓▓▓▓██████▀
        ▀▓▓▓▓▓▄░▒▒░▓▓▓▓▓▓██████▀▀
            ╙▀▀▀██████████▀▀▀`
InfinitusToken.io
███
███ ██
███ ██
███ ██
███ ██
███ ██
███ ██
███ ██
███ ██
███ ██
███ ██
███ ██
███ ██
███ ██
███ ██
███

   ███
██ ███
██ ███
██ ███
██ ███
██ ███
██ ███
██ ███
██ ███
██ ███
██ ███
██ ███
██ ███
██ ███
██ ███
   ███
⚑⚑ Read our Whitepaper
⚑⚑ Medium ⚑⚑ Telegram
[/ta
lihuajkl
Legendary
*
Offline Offline

Activity: 1568
Merit: 1000


View Profile
December 26, 2014, 03:47:46 PM
 #10

Their is the need for theft insurance, not insurance for bitcoin price fluctuations. Prices going down is usually a time to buy bitcoin.
some business dealing with bitcoin maybe need this service to lock their profit and eliminate the price fluctuation risk specially when bitcoin is under down turn!
this is like a kind of future contracts to hedge the risk! But personal investors can also profit from trading it!
Barabbas0
Newbie
*
Offline Offline

Activity: 28
Merit: 0


View Profile
December 26, 2014, 05:20:59 PM
 #11

Their is the need for theft insurance, not insurance for bitcoin price fluctuations. Prices going down is usually a time to buy bitcoin.
some business dealing with bitcoin maybe need this service to lock their profit and eliminate the price fluctuation risk specially when bitcoin is under down turn!
this is like a kind of future contracts to hedge the risk! But personal investors can also profit from trading it!

Or like any derivatives contract. One trader's risk is another trader's protection. You can use options for extra leverage (risk) or to move around delta, protecting your downside at the expense of the upside. FWIW, November '13 would be less "violent" if options were available. Put prices would be balanced by those seeking protection or leverage.
hdd3go
Legendary
*
Offline Offline

Activity: 1008
Merit: 1000



View Profile
December 26, 2014, 05:25:14 PM
 #12

Bitcoin insurance ,interesting , and more and more Bitcoin financial instruments are coming true.
Supercrypt
Legendary
*
Offline Offline

Activity: 1554
Merit: 1054



View Profile
December 26, 2014, 05:31:21 PM
 #13

never thought about this before "bitcoin price insurance"
and how it works?
LiteCoinGuy
Legendary
*
Offline Offline

Activity: 1148
Merit: 1001


In Satoshi I Trust


View Profile WWW
December 26, 2014, 08:59:36 PM
 #14

maybe your answer is "LOCKS" from

https://coinapult.com/

?

Q7
Sr. Member
****
Offline Offline

Activity: 448
Merit: 250


View Profile WWW
December 27, 2014, 03:03:12 AM
 #15

If a person has 1000 bucks, buy 250 bucks worth of bitcoin. The remaining balance is your insurance *if the price goes down*. If it does happen, use another 250 to buy more. whatever balance remaining is still your insurance in case of a drop. As it goes down further, use that to buy more until you are dry  Grin

It sounds silly because if you don't believe in any of these insurance thing, then use the whole of 1000 to buy at the spot price.

You really have no idea how hedging works, do you? I, for one, would value BTC derivatives. At the very least, I expect a lot of attention to married puts.

Hedging is a form of investment insurance. If you bet 250 and pile up another 500 when price goes down, basically that is done to protect your position.

Foxpup
Legendary
*
Online Online

Activity: 2618
Merit: 1527


Vile Vixen


View Profile
December 27, 2014, 04:41:03 AM
 #16

If a person has 1000 bucks, buy 250 bucks worth of bitcoin. The remaining balance is your insurance *if the price goes down*. If it does happen, use another 250 to buy more. whatever balance remaining is still your insurance in case of a drop. As it goes down further, use that to buy more until you are dry  Grin

It sounds silly because if you don't believe in any of these insurance thing, then use the whole of 1000 to buy at the spot price.

You really have no idea how hedging works, do you? I, for one, would value BTC derivatives. At the very least, I expect a lot of attention to married puts.

Hedging is a form of investment insurance. If you bet 250 and pile up another 500 when price goes down, basically that is done to protect your position.


Will pretend to do unspeakable things (while actually eating a taco) for bitcoins: 1K6d1EviQKX3SVKjPYmJGyWBb1avbmCFM4
tyrexs
Sr. Member
****
Offline Offline

Activity: 266
Merit: 250


View Profile
December 27, 2014, 07:07:53 AM
 #17

im just hear bitcoin price insurance, what is that

johnyj
Legendary
*
Offline Offline

Activity: 1848
Merit: 1000


Beyond Imagination


View Profile
December 27, 2014, 08:03:18 AM
 #18

The insurance against theft or lost password is most needed, but unfortunately there is no way to prove that the coins are stolen by others instead of you

Barabbas0
Newbie
*
Offline Offline

Activity: 28
Merit: 0


View Profile
December 27, 2014, 03:56:27 PM
 #19

im just hear bitcoin price insurance, what is that

You should read up on option strategies, but basically, say you own 100 shares of XYZ. XYZ currently trades at $100/share. You want protect yourself against a downturn, so you decide to buy a $95 put contract. That contract gives you (buyer) the right to sell 100 shares (1 option contract per 100 shares) of XYZ at $95 (Strike price) at any point between now and an agreed upon point in the future (expiration date).

The seller has the obligation of taking those shares if you exercise. This is risky, as XYZ could plummet to, say, $50 and now the seller has to buy at $95 and sell at $50. This risk is reflected in the price of the contract.

If XYZ rises, you profit from your shares, but lose the cost of the put contract. If it falls, you get to sell at $95, even if XYZ goes bankrupt.

That's put insurance in a nutshell. There's also calls which give the buyer the right to buy at a certain price. In November 2013 if you could have purchased a $2000 BTC call, it probably would have been extremely pricey, but in early 2014 when the price plummeted you would have only been out the cost of the call contract, instead of holding onto a depreciating asset.
HeroCat
Hero Member
*****
Offline Offline

Activity: 658
Merit: 500


View Profile
December 28, 2014, 02:09:25 PM
 #20

This is ok, if you have many BTC, then yes, you can make insurance. I do not know any company, which do that type of BTC price insurance  Cheesy
Pages: [1] 2 »  All
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!