The decentralized finance (defi) space is now moving so quickly, it looks like no one even knew you could buy an option on bitcoin reaching $100,000 by January 2022.
Bidding on it has apparently already closed just yesterday. We wanted to ‘test’ run it, but there’s no options available and we can’t just buy one.
There’s generally very low liquidity here as can be seen, but what can be very interesting is that the option itself is a token.
So the token option can itself now be traded and even free floatingly on ethereum powered exchanges or even centralized ones.
In addition, the token itself doesn’t have to be sent to the zero address once the contract expires depending on how it is coded.
So the token option can continue to maintain value especially in this case as a collectable because this is the first $100,000 ethereum based bitcoin option as far as we are aware, and is very scarce.
As expected, just about more than half think bitcoin won’t reach $100,000 within about 18 months.
However, quite a lot percentage wise do think it will go to $100,000. Making this somewhat interesting because the contract is the custodian here instead of your funds being IoUs on Deribit or somewhere else.
But Deribit has nice liquidity, while options here are a very new thing with fees somewhat uncompetitive compared to Deribit as very many people want to use the ethereum network currently.
On the other hand, the option is actual ownership itself, instead of some number on the screen. So there could potentially be more dynamism in regards to what you can do with this token.
You can obviously potentially use it as collateral, connect it to spot exchanges running on eth, to futures as well, with all of this being a lot more agile and flexible within its natural environment of ethereum waterways.
Meaning there can be potential innovations built on top to make it a lot more than just an option.