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I can see Binary Options have limited hedging value as compared to Vanilla Options. But it's incorrect to label it as a scam. Most futures/options on "traditio

• bcoates 13y ago
  There's nothing wrong with settling in cash. There is something wrong with failing to maintain the separation between marketplace and counterparty. There's no meaningful settlement at all here; there is literally no way to get USD into or out of this site--you just get BTC back on take-it-or-don't terms. You're playing craps, only the dealer rolls the dice for you behind a screen and tells you if you won or not. I wasn't familiar with the specific subspecies of this called "Binary Options" before, but even basic investigation makes it clear that yes, Binary Options are a scam product. There do not appear to be any legitimate binary options marketplace/peddlers. There's no reason you couldn't structure an exactly equivalent product out of legitimate securities, so there's no reason for this product to exist outside of running cons.
  • Anderkent 13y ago
    > You're playing craps, only the dealer rolls the dice for you behind a screen and tells you if you won or not. Huh? If I understand this correctly, you win if the price on mtgox goes above a certain strike range. That's public information, so surely you can check yourself if you won or not?
  • ye 13y ago
    > You're playing craps, only the dealer rolls the dice for you behind a screen and tells you if you won or not. Looks like you have no clue what you're talking about. The outcome depends on a 3rd party system, which is out of Futureblock's control. The only real problem I see with the whole thing is trust. Do you trust them not to steal your coins?