Silk Road forums

Support => Feature requests => Topic started by: performance on July 07, 2011, 01:32 am

Title: PROPOSAL: insurance to solve BTC fluctuation issue
Post by: performance on July 07, 2011, 01:32 am
Another solution to remove incentives for buyers and sellers to cancel orders due to BTC fluctuation, Silk Road can offer price insurance. Just like regular insurance / futures, Silk Road would charge an additional small premium (determined by actuarial procedures and risk/volatility assessment) on each transaction, to the buyer.

At the conclusion of the transaction, if the BTC went up then the buyer will get refunded the difference, and the seller will receive less. If BTC went down then the buyer still pays the original BTC amount but the seller will get a payout from the insurance (the BTC for this comes from the premium pool).

I haven't thought this through completely so feel free to criticize if there are glaring problems with it.
Title: Re: PROPOSAL: insurance to solve BTC fluctuation issue
Post by: rake on July 07, 2011, 01:53 pm
All these threads about an "issue" that is really a non-event.  bitcoins go down, bitcoins go up, if they are down when a transaction is completed, no one is forcing a seller to cash out at the lower rate.  They could hold on to them for a couple of days for a better rate.