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mircea_popescu: the moment i go in the market to hedge i'm basically releasing all the risk out there. this isn't waht mpoe does. mpoe just soaks up the risk.
mircea_popescu: but the 1st level providers don't buy it, cause there's nobody to buy it from
mircea_popescu: or if you prefer the example of the internet : second, third and higher tier providers BUY bandwidth.
mircea_popescu: i'm not trading volatility, i'm actually providing the hedge endpoint.
mircea_popescu: the alternative would be to simply re-buy insurance somewhere else. but this isn't underwriting, this is simply trading.
mircea_popescu: the only way to actually underwrite this is to have a lot of money, sign insurance policies with the farmers.
mircea_popescu: it would be beneficial for them to buy flood insurance.
mircea_popescu: benkay take the insurance example, because it is really very apt.
mircea_popescu: this is what it does. if i go buy safety somewhere else then i'm no longer PROVIDING it
mircea_popescu: okay. the bot itself is a primary seller of safety in btc.
mircea_popescu: mpex does offer stocks, but that's not under discussion here. as for the derivative trade, ie options, these are a different market from the underlying.
mircea_popescu: the operator would offer very high margin and trade with low net worth parties who couldn't participate in the real marketsd.
mircea_popescu: a bucket shop is a currently illegal, historically popular venue to take side bets on stocks.
mircea_popescu: but anyway : mpoe can't hedge. what it does is it allows others to hedge against it.
mircea_popescu: mpex makes sure there's warm server soup on the table.
mircea_popescu: <Bugpowder> Mpex is a sideshow <<< if it weren't for mpex there'd have been no divs this month at all.
mircea_popescu: atm mpoe is a 0 capital venture, which is a good thing.
mircea_popescu: as in, i don't set a %, i just take whatever the max was
mircea_popescu: well ya on this month. i rarely participate in the actual market.
mircea_popescu: if that's true then bondholders have been mispricing their %
mircea_popescu: mpoe-bonds are pretty much the highest reward / highest risk actgion in btc.
mircea_popescu: thestrin1puller well they don't really. the idea is they're taking on risk for a high %
mircea_popescu: when a hurricane hits the insurer pays through the teeth.
mircea_popescu: it's sort of like insurance, if you will. you pay a little every month
mircea_popescu: so other people can sell their exposure and increase their safety.
mircea_popescu: but this is what it does. mpoe bot is in the market of buying exposure.
mircea_popescu: listen, there's no way to make a bot so you always win.
mircea_popescu: ThickAsThieves you send no less than 100 btc to 1JPvucRfu3ZzEvfBUQTJwsxMrZjeTqD6zR ending in 888 (so like 100.00000888) after you've emailed me stating your beneficiary addy and desired %
mircea_popescu: thestrin1puller they are lol. i hold most of mpoe and held most of the bond book >.<
mircea_popescu: then again... i guess i can see it. shareholders don't care, not their skin. made a 39 per which is not really much lower than usual
mircea_popescu: Bugpowder girl said he was there to warn everyone about her shirt
mircea_popescu: it DOES make unignored people look like muppets when they're in effect talking to themselves lol
mircea_popescu: OneMiner prolly ignore works better than banning people.
mircea_popescu: i tell you, running the options book is the worst fucking racket there is. when you get no trade you're depressed, when you do get trade you're worried.
mircea_popescu: fucking hell am i going to be paying .6 btc worth 200 each on these ?
mircea_popescu: Bugpowder anyway, the variance would be fucking high. +400% a month fml.
mircea_popescu: ThickAsThieves i've always backstopped the bot, since day one.
mircea_popescu: not for me to dick around in the fabric of the universe.
mircea_popescu: the correct fix is for bond ppl to set appropriatge interests
mircea_popescu: Bugpowder the issue is that people make assumption based on the algo as is
mircea_popescu: <ThickAsThieves> my only question is, has the bot algo been adjusted to mitigate this exposure in the future << no.
mircea_popescu: o also, someone be kind enough to put march report on reddit ?
mircea_popescu: i'm gonna have to come up with criteria to award these now
mircea_popescu: by pointing out that they don't ger 500 bux for a vignette
mircea_popescu: jurov : if you have any artist friends you can always troll them
mircea_popescu: i might have lost 15k rthis month, but on the upside who the duck else has monthly report and whole mpsic changeover in 2 hours ?