Post
Topic
Board Development & Technical Discussion
Re: Securing contingent claims
by
johanatan
on 29/06/2011, 02:55:21 UTC
 However, as others have mentioned 'OpenTransactions' already seems to be approaching 'p2p contracts' and that may be objectively better if one is particularly attached to the current blockchain.  IMO, CBM is a bit more elegant (and it allows the miners to get directly involved in predictions and doesn't preclude the additional options/contracts markets from developing around it either).  There is something to be said for leaving a working system alone though and building onto it.
One problem with using the existing block chain is that it ties up BTC in escrow. Suppose we want to wager 1 BTC on bitcoin difficulty 1 year in the future. To do this, we would need to hold 1 BTC in escrow for the next year. If on the other hand we loaned out the BTC at a hypothetical risk-free interest rate of 1%, we could earn around 0.01 BTC in interest during this year. Thus, there is something like a 1% annual tax on speculative transactions that use regular bitcoin.
But, different brokers will have different margin requirements.  Surely those won't always be 1:1.