Post
Topic
Board Economics
Re: Why bitcoins are dropping, and will continue to do so
by
5grainsilver
on 06/07/2011, 01:18:05 UTC
Derivatives require a legal system that forces people to pay their debts and counter-parties strong enough to pay them.

From the Bitoption FAQ

"Is this Escrowed trading? YES. You are guaranteed to be able to execute once you've purchased a contract."

That's good enough for me.

Umm...I was reading the bitoption status thread earlier and it sounds like the owner has stopped responding, people are owed money etc. 

A guarantee is only as good as the person making it.  And an escrow is only worthwhile if it is by a trusted and reliable third party.