re: Official CryptoTalk Thread

yea they're a big deal. it's also exactly you don't need a "token" to have an oracle smart contract platform

Interesting, been going back and forth on link if it's actually really a necessity or not.

the thing i'm having trouble with between LINK and ADA is this:

i haven't heard of any real world example of how either of these 2 work.

it's not like VET (blockchain for the supplychain). download an app, scan a QR code and trace an item back to it's origin. origins can't be changed/hacked because it's part of the blockchain. however, i have no idea how LINK or ADA works.

i only bought LINK because alot of people here were bull on it.

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Link is middleware that is acting as an oracle.

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Since we are on a sports website I will use a sports-related example. Let's say you (Gator fan) and an acquaintance (UGA fan) want to bet on the game. You create a smart contract which sends your request for game results to the oracle whose job is to get the information from off-chain APIs such as ESPN, CBS, et al. The oracle then sends the information back to the smart contract for execution.

I believe the end user can specify how many oracles will be required to ensure that the "correct" answer is given. If an oracle provides bad information or is just generally unreliable, the oracle will have to pay a penalty.

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If an oracle provides bad information or is just generally unreliable, the oracle will have to pay a penalty.

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so what exactly is an oracle? a person? a group of people? AI? how do you hold it accountable?

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VET is a blockchain like ethereum or cardano. It runs on its own chain

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I clearly haven't kept up with VET

I didn't realize they split off from Ethereum.

Pretty good dip happening

OK, I managed to get this long call today:

BTC 2022-12-30 Call $5,000
Bought 1 @ $55,475.00
Premium paid: $55,475.00

Break even price of BTC at 12/30/2022 expiry is $60,475, and the cost of the trade was $15.00

European style, so I can't exercise until expiry, but I can sell to close at any time.

Obviously a DIM call option, but this seemed like a good way to go long until 2022.

Protective puts for the BTC I own as follows:

BTC 2022-12-30 PUT $100,000
Bought 1 @ $58,500
Premium Paid $41,500

Essentially here I just purchase the right to sell at $100,000, to guaranty my profit in BTC at starting at BTC $41,500 and lower. I'm short BTC here, but I own BTC at a very low entry point, and I don't want to sell, so I'm insuring some gain if the bottom falls out.

A bit more on the protective put. I'm considering selling this after I figure out what I can generate by selling covered calls. In other words, sell a call (sell the right to buy), at a strike price that guarantees a profit, and the premium I collect is mine whether the option gets exercised (i get the BTC called away), or expires worthless. I'm considering selling very high strikes. For example I could sell 12-30-2022 $400,000 call (covered by 1 BTC I own), and collect $3,510 inn premium income. My BTC would be called away at BTC $403,510 or higher. But since the expiry is 12-30-2022, if BTC dropped maybe to $40K, I'd probably buy to close that call for less than I received in premium. I'm betting BTC will go up long term, but not up to $403,510, and probably on the way up, go down, and then up, and then down ad infinitium...

The other option is selling deep out of the money calls, and using the premium to buy more realistic bullish calls for myself. Or even sell a deep out of the money call, and but a deep in the money call. Spreads are a harder on LedgerX, but still can be done, and I don't want to mess around with the CME contracts right now as they are 5 BTC per contract. I could do this on margin, and with stops, but the price is so volatile, I really don't want to screw with it.

Wash, rinse repeat.

Settlement on LedgerX is as follows:

Call option buyer: Receives bitcoin (if option is exercised)
Call option seller: Receives US dollars

Put option buyer: Receives US dollars (if option is exercised)
Put option seller: Receives bitcoin

LedgerX sells 1/100 futures and 1/100 options. I the examples I've used, I rounded up to make it one contract to one BTC. So if someone wanted to trade, divided my prices and premiums by .01, and those are the minimums. A very affordable way to trade around what everyone on here already owns, without having to sell the underlying asset.

Ledger X also has swaps.

Another way to go long is to sell puts, collect premium, and have BTC put to you. You BTC entry price is the price put to you (strike price sold), less the premium collected. Warren Buffet used to do this in stocks, even though he lied about it.

I got lucky. I really don't completely understand BTC or crypto nearly as much as most on here, but I bought some between $1K and $3K. And I wish I would have bought a f ton more, becuase I wouldn't be on here at 7:35 worried about how to protect my gains.