How to Manage Counterparty Risk When Trading Bitcoin ...

P2P Bitcoin Derivative Trading Through the Blockchain: Equities, Bonds, Forex & Commodities

Research & ideas to use [Veritaseum's UltraCoin](http://ultra-coin.com/) **user programmable Bitcoin swaps** to trade exposures to cryptos, forex, equities, bonds & commodities through 45,000+ global tickers & up to 10,000x price leverage - peer-to-peer. Veritaseum's UltraCoin is a software concern that holds no client funds and is not a financial entity, hence presents you with no counterparty or default risk. [Download the client & tutorials](http://ultra-coin.com/index.php/download-beta)
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BCexchange, the decentralized cryptocurrency exchange for everyone

Subreddit for BCexchange (short for ​Blocks & Chains Decentralized Exchange). B&C Exchange will be an open-source decentralized exchange that completes cryptocurrency trades between users by utilizing multisig signers that compete for blockchain rewards based on their effectiveness and honesty. Trades occur using real cryptocurrencies such as Bitcoin and NuBits.
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There is a huge arbitrage trading opportunity

Price of Bitcoin futures is different than the price of real bitcoins.
Arbitrage traders can make a huge profit, however there is a counterparty risk (bitcoin exchanges not providing enough liquidity at the correct price or be offline).
Next month we are about to see what will happen when the first in history Bitcoin futures contract expires. I expect big volatility and technical problems with the Bitcoin exchanges.
submitted by tedjonesweb to Bitcoin [link] [comments]

The real and imagined problems with Bitcoin[part1]

The more you read about bitcoin, the more patterns will emerge as to what people think will be the reason bitcoin cannot succeed. Many of these concerns are silly... and others are worthy of further thinking. So in no particular order I shall list them
Perhaps the worst argument of all against bitcoin is that it's creator is a mystery. This is a bad argument. It's like saying that your software calculator is evil or bad because you do not know the name of the programmer who wrote it. Bitcoin is just a program and a program is just a tool. The source code is open and transparent. Everyone involved knows the rules and there is no mystery. So why would no one want to take credit then for the creation of something so important? I can think of one glaring reason among others.... you will notice that bitcoin investors will typically not answer questions about how many bitcoin they own. That's the smart thing to do. It's estimated that satoshi has somewhere between 1-2 million bitcoins. If his identity was known people might try to steal it from him. They might kidnap members of his family or people that he loves. Having that many bitcoins and letting it be known is simply dangerous.
Another silly argument against bitcoins is that it is a ponzi scheme. Bitcoin is no more a ponzi scheme than a stock is. If someone buys a stock and that company starts to go south the stock price will fall and the latest ones to buy in to the stock will lose the most. In a way that resembles a ponzi scheme... but that's all. The only way you could even claim that bitcoin resembles this is if you assume that it's going to fail. So right away anyone who calls it a scheme is telling you that it is going to fail and that they can predict the future.
Another problem frequently cited around bitcoin is its volatility. It has been claimed that bitcoin can't be used as a currency because it is too volatile. The problem with this theory is that reality proves it wrong. Even during the times of its greatest volatility there are still transactions happening. People still use it as a currency. A merchant who accepts bitcoin can tie in with a company like coinbase and immediately convert to cash and assume no risk holding it. Things that are sold for bitcoins can be tied to the price of anything quite easily with simple programs. You could have an online store and have everything priced in bitcoins and have the amounts tied to something like dollars or even gold. This doesn't mean volatility isn't a problem. It can make things pretty inconvenient , but it isn't as big of a deal as some people make it out to be. The reason why is because the volatility of bitcoin is linked to it's userbase. The userbase cannot increase (or decrease) exponentially forever. The amount of people joining or leaving bitcoin won't continually be changing by large amounts in short periods of time. Bitcoin is still in it's infancy so for the time being you can expect volatility. If all of the sudden you had 2 or 3 or 4 times as many people using the dollar as there was days before you would probably be seeing volatility with it too (despite how fast the Fed seems to be at creating new ones) . Just like a stock, the deeper the markets are the less volatility there is.
Intrinsic value is another often cited problem with bitcoin. Some theorists claim that bitcoin needs an intrinsic value to enforce that it will always be worth something. Gold if not used as money can still be used as jewelry. Dollars, although not backed by gold, are backed by men with guns. Some people claim that bitcoin isn't just a currency but rather it is a network and that the intrinsic value of bitcoin is this network. What someone is really saying when they say that money needs intrinsic value is that it needs to be good at something besides being money to be good at being money. That's pretty unnecessary. All that intrinsic value does for gold as a store of value is create a psychological effect. It adds a price floor. But that price floor isn't the actual price and therefore it is only creating a psychological crutch. I'm not saying that it is entirely useless. A psychological crutch adds confidence and confidence is good. But it also adds burden. A money that is backed by something like gold is burdened by gold. Can you still instantly transport it across the world? Could you drop an empty safe in the ocean and then send it into the safe while it was sinking at a depth of over a mile? You can send bitcoins in that fashion. You could keep all the gold in some centralized place and send the money but then... that introduces storage costs and centralization and counterparty risks. Bitcoin obviously has value to some people and it is already used as a currency so to say it can't be a currency because of this reason or that is kind of ignorant.
Many economists claim that bitcoin is doomed because it will lead to deflationary spirals. Why spend something now when you know it's going to be worth more tomorrow? is the oft-cited question. The problem is that economists have certain ideas and they try to fit reality to those ideas rather than their ideas to reality. There are three main counterpoints to this. THe most popular one is that there is a cost in deferring payment. Why buy a computer now when in a year you know you can get a more powerful one for the same price or cheaper? Because you need it now. Another counter point is that with bitcoin a deflationary spiral is essentially impossible because you will never get the whole market to agree that the price is going up. In any market... especially bitcoin you have bulls and you have bears. If the price suddenly rose 10 times you can bet that a lot of people would be trying to get rid of their bitcoins by "buying" goods or dollars with them. Nothing only goes up in value. If it did then it's chart would look like a straight line. Bitcoin doesn't have such a chart. Economists tend to look at bitcoin in isolation when they talk about deflation. But can the sudden and shortlived bubbles that bitcoin experiences harm the economy? If bitcoin was the only currency to exist then you could make the argument that merchants would suffer during these times because there was less spending. But we don't exist in such a world (and nor will there ever likely be a world where the only currency is just 1 digital cryptocurrency) . And even if we did ..... those periods of rapid deflation are not sustainable and short lived.
submitted by specialenmity to Bitcoin [link] [comments]

A simulated strategy has no collateral. No collateral keeps Bitcoin Enhanced tokens, like Bitcoin, outside of the systemic and counterparty risks of the fiat system. It also lowers regulatory risk. We are following the lead of Bitcoin as a better way to grow value

submitted by anov996 to LitecoinMarkets [link] [comments]

Bitcoin Q&A: The QuadrigaCX scandal and counterparty risk - Andreas M. Antonopoulos

Bitcoin Q&A: The QuadrigaCX scandal and counterparty risk - Andreas M. Antonopoulos submitted by Fiach_Dubh to BitcoinCA [link] [comments]

Holy shit! The *real* goal of the people who support limited blocksize and Lighting Network is to bring back fractional reserve, debt-backed promissory notes, and counterparty risk - ie, the whole crappy fiat system that Bitcoin was designed to avoid! (video of Amanda interviewing /u/JustusRanvier)

https://www.youtube.com/watch?v=w5TDcVfgpRc
(The stuff about forcing Bitcoin back into a fractional reserve, debt-backed, counterparty approach is towards the beginning.)
Justus Ranvier also explained this in a text comment:
Right now there is a multi-pronged attack on the infrastructure that allows individual users to transact directly.
One prong is to simply bribe the developers and take them out of the game. The going rate for selling out the banksters is $100-$300k/year.
The second prong is segwit forcing the remaining wallet developers to rewrite their software.
At the same time, LN is being released and everybody is being encouraged to adopt it.
The purpose of this attack is to kill the cash-like aspect of Bitcoin and force everybody back into holding bank liabilities and transacting through intermediaries again. Bitcoin wallets will be gutted and replaced with banking apps.
The initial version of LN may indeed allow individuals to do their own thing, but it won't last any more than that phase of Ripple lasted. Once the infrastructure for direct transaction has been dismantled, the Bitcoin banks will be consolidated into a handful that are all part of the same cartel.
Using the block size limit and other available measures it will only require a modest investment to make sure that only cartel members are able to transact on the chain.
Once they are confident that the their infrastructure takeover is complete, the banks no longer need LN to settle between themselves. They can swap that part out for any settlement system. Since by this point the cartel is the only ones paying for mining, when they decide to stop using it the miners are instantly bankrupt.
https://bitco.in/forum/threads/gold-collapsing-bitcoin-up.16/page-480#post-17563
submitted by ydtm to btc [link] [comments]

Sparrow | Trade Bitcoin and Ethereum Options with no counterparty risk

#SparrowOptions #OptionsTrading #HODLSmarter #REKTNoMore #cryptooptions #cryptotrading #BTC #ETH
Users can trade customized Bitcoin and Ethereum European options with no counterparty risk, and instantly convert over 25 trading pairs at zero cost with Sparrow's ConvertNOW Facility.
submitted by jyotianand11 to CryptoICONews [link] [comments]

Users can trade customized Bitcoin and Ethereum European options with no counterparty risk

Users can trade customized Bitcoin and Ethereum European options with no counterparty risk, and instantly convert over 25 trading pairs at zero cost with Sparrow's ConvertNOW Facility.#SparrowOptions #OptionsTrading #HODLSmarter #REKTNoMore #cryptooptions #cryptotrading #BTC #ETH
https://sparrowexchange.com/
submitted by neerajanand27 to ICOAnalysis [link] [comments]

Users can trade customized Bitcoin and Ethereum European options with no counterparty risk,

Users can trade customized Bitcoin and Ethereum European options with no counterparty risk, and instantly convert over 25 trading pairs at zero cost with Sparrow's ConvertNOW Facility.#SparrowOptions #OptionsTrading #HODLSmarter #REKTNoMore #cryptooptions #cryptotrading #BTC #ETH
https://sparrowexchange.com/
submitted by neerajanand27 to Crypto_General [link] [comments]

Users can trade customized Bitcoin and Ethereum European options with no counterparty risk and instantly convert

Users can trade customized Bitcoin and Ethereum European options with no counterparty risk and instantly convert over 25 trading pairs at zero cost with Sparrow's ConvertNOW Facility.#SparrowOptions #OptionsTrading #HODLSmarter #REKTNoMore #cryptooptions #cryptotrading #BTC #ETH
https://sparrowexchange.com/
submitted by neerajanand27 to ICOAnalysis [link] [comments]

aantonop - Bitcoin Q&A: The QuadrigaCX scandal and counterparty risk

aantonop - Bitcoin Q&A: The QuadrigaCX scandal and counterparty risk submitted by Yanlii to cryptovideos [link] [comments]

2015: The year of the Decentralized Bitcoin Exchange. Price-tracking crypto without counterparty risk is possible.

2015: The year of the Decentralized Bitcoin Exchange. Price-tracking crypto without counterparty risk is possible. submitted by i3nikolai to Bitcoin [link] [comments]

@technology: RT @crypto: A trader placed a losing $400 million bet on bitcoin using futures contracts and now can't cover the losses, putting counterparties at risk https://t.co/ChsByfbshV https://t.co/7JP1DlK0vF

@technology: RT @crypto: A trader placed a losing $400 million bet on bitcoin using futures contracts and now can't cover the losses, putting counterparties at risk https://t.co/ChsByfbshV https://t.co/7JP1DlK0vF submitted by -en- to newsbotTMT [link] [comments]

Binary options are a perfect use case for Bitcoin based smart contracts. Eliminates counterparty risk.... (Needs a reliable oracle)

Why is somebody not doing this already? It's technically very simple (2 parties put amount in escrow, winner takes all) and would completely eliminate counterparty risk from options trading, as well as KYC.
It would showcase a real, simple use case for smart contracts right now!
The only thing that you need to rely on is a decent oracle... but for very widely known facts (like stock index or currency prices) it should be relatively simple.
submitted by flix2 to Bitcoin [link] [comments]

aantonop - Bitcoin Q&A: Decentralised exchanges and counterparty risk

aantonop - Bitcoin Q&A: Decentralised exchanges and counterparty risk submitted by Yanlii to cryptovideos [link] [comments]

Bitcoin Q&A: Decentralised exchanges and counterparty risk

Bitcoin Q&A: Decentralised exchanges and counterparty risk submitted by CryptoCoinCache to CryptoCurrencies [link] [comments]

How do you avoid counterparty risk on the LN with full blocks? /r/Bitcoin

How do you avoid counterparty risk on the LN with full blocks? /Bitcoin submitted by BitcoinAllBot to BitcoinAll [link] [comments]

Coinbase Counterparty Risk /r/Bitcoin

Coinbase Counterparty Risk /Bitcoin submitted by BitcoinAllBot to BitcoinAll [link] [comments]

When comparing the Lightning Network to the legacy payment systems, all detractors either miss or intentionally leave out the most important distinction that gives LN its major advantage > **Zero counterparty risk** /r/Bitcoin

When comparing the Lightning Network to the legacy payment systems, all detractors either miss or intentionally leave out the most important distinction that gives LN its major advantage > **Zero counterparty risk** /Bitcoin submitted by BitcoinAllBot to BitcoinAll [link] [comments]

The recent news about Bitcoin Futures on CME is good news, as NaPoleonX will have access to currency hedging instruments without the counterparty risk.

The recent news about Bitcoin Futures on CME is good news, as NaPoleonX will have access to currency hedging instruments without the counterparty risk. submitted by accountaccumulator to NapoleonX [link] [comments]

[uncensored-r/Bitcoin] Coinbase Counterparty Risk

The following post by Code615 is being replicated because the post has been silently greylisted(for 1.2 hours).
(It was approved by the mods at: 2018-01-20T11:16:37.000Z)
The original post can be found(in censored form) at this link:
np.reddit.com/ Bitcoin/comments/7rievr
The original post's content was as follows:
Does anyone else worry about the counterparty risk associated with holding cryptocurrencies on Coinbase? I'm concerned that in the event of a run on the exchange Coinbase would not have the capital readily available to meet redemptions.
submitted by censorship_notifier to noncensored_bitcoin [link] [comments]

Must See Video: $9 Trillion Lost By The Federal Reserve... <- this is why I love bitcoin! No counterparty risk!

Must See Video: $9 Trillion Lost By The Federal Reserve... <- this is why I love bitcoin! No counterparty risk! submitted by BitcoinAllBot to BitcoinAll [link] [comments]

Must See Video🎥: $9 Trillion Lost By The Federal Reserve... <- this is why I love bitcoin! No counterparty risk!

Must See Video🎥: $9 Trillion Lost By The Federal Reserve...
submitted by eastendtech to btcnewsfeed [link] [comments]

What is/was the Counterparty burn? CounterTools Bitcoin & Counterparty Wallet Ep2: Identifying counterparty risk in Bitcoin

Counterparty is a platform built for Bitcoin to take advantage of the blockchain technology. It is a protocol consisting of an ensemble of financial tools, which users then utilize in Bitcoin.Blockchain technology helps Counterparty in publicizing and time stamping its messages. Bitcoin as a Solution to Counterparty Risk. Bitcoin was created as a solution to a number of problems involving counterparty risk in digital money. “Commerce on the Internet has come to rely almost exclusively on financial institutions serving as trusted third parties to process electronic payments,” reads the original Bitcoin white paper. “While the system works well enough for most ... How to Manage Counterparty Risk When Trading Bitcoin Posted on: August 9, 2016. Written by: Rocky Categorized in: Tips. In light of the recent Bitfinex hack I thought it would be appropriate to write another article about reducing counterparty risk. Active traders need to use exchanges with liquidity in order to make a living. Even those who aren’t traders still tend use exchanges from time ... Counterparty uses the Bitcoin blockchain to deliver our transactions, and we have a responsibility and a desire to be conscientious citizens of the Bitcoin community.. Counterparty, as a project, was closely modelled after Bitcoin itself.Counterparty had no ‘IPO’, and its development is entirely supported by community contributions. The counter party risk is thus the trust in the bitcoin system itself. Every now and again people loose trust in the bitcoin system and the price falls, then it proves yet again that it survived and the price rises. You could also call this systemic risk. Another kind of Systemic Risk in Bitcoin are when exchanges and wallet services are hit by fraud and hackers. See what happened at MTGox as ...

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What is/was the Counterparty burn?

Ep2.ver1 Bitcoin is designed to permit trustless exchanges of control of bitcoin and not trustless exchanges of control of bitcoin with some other asset. This video explores where counterparty ... Counterparty risk - Duration: 6:54. Marketplace APM 46,262 views. 6:54 . How To Insert Image Into Another Image Using Microsoft Word - Duration: 14:13. Recipes Recommended for you. 14:13 ... How were Counterparty's XCP Created? What is it to 'burn' Bitcoin? In this video, from the heart of the Wynwood district in Miami Florida, I explain the answers to these questions, and discuss the ...

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