Investors have put 1 million dollars in that the crypto currency is over $ 50,000 next December. Is not it, they lose everything.
LedgerX is a brand new market for bitcoin derivatives.
On Wednesday, their trade shows showed that one or more investors, or gamblers, bought a cool buy option for bitcoin, writes the Wall Street Journal.
The person has set just under 1 million dollars, equivalent to 8.3 million Norwegian kroner, that bitcoin will cost more than $ 50,000 on December 28, 2018.
If the prediction does not turn out and bitcoin turns out to have a price below $ 50,000, the total amount will be lost and the investment will be worthless.
If the price turns out to be above this price, those who have purchased the contract will have the opportunity to purchase 275 bitcoins for $ 50,000 - a transaction that will cost $ 13.8 million.
Ensures
Thus, investors believe that bitcoin will have a significantly higher value than 50,000 dollars at this time next year.
Just to earn the million that is wagered, the price must be $ 53,600 per bitcoin.
By making use of the relatively high priced purchase option, the buyer ensures a real collapse in the bitcoin price.
Should he have bought 275 bitcoin at today's rate of $ 17,000, he or she would have had to pay out $ 4.7 million.
It's no more than the bitcoin price falls to just over $ 13,000 before an investment equivalent to one million dollars is blown away from that value.
Heavy crypto-fall Friday
Bitcoin has become the big talk of the financial world lately, following a completely elastic rise in prices throughout the year.
At the beginning of the year, the bitcoin price was just under $ 1,000, but since that time the price has risen to fairytale levels. Especially in the last few weeks the course gallop has been eleven.
On December 17th, the preliminary peak was reached at a rate of around $ 20,000 per bitcoin. After that, there has been a sharp correction and on Friday, the price was down to $ 10,834 at the lowest, according to Coindesk.
Market stratag Ron William at RW Market Advisory says in a CNBC interview that the case can infect other markets.
- The price is extremely irrational. And now it seems like - if we go lower - that this can infect the other markets, "he says.
He believes that the price drop is normal, but still comes with a general warning.
Just before 21:00 on Friday night, the Bitcoin rate is down 13.3 percent to $ 13,462, while Ethereum and Iota is down 18.4 percent to $ 660 and down 32.2 percent to $ 3.40, respectively. Ripple, in turn, has "only" dropped 4.6 percent.
Today's case, however, those who invested a year ago secured a good win. And some analysts have predicted that the upturn will continue.
At the same time, there has been no lack of predictions that the cryptovaluta is a bubble and when it will burst.