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Is there a place where I can bet on the price of Brent crude oil? For example, I bet 1 BTC and:
if the oil price increases by 1%, I will lose the bet.
if the oil price decreases by 1%, I will double my bet.
I am Russian and need a kind of insurance against the rouble falling. This bet will be a much cheaper solution than changing a lot of money into dollars or bitcoins.
1That seems like an incredibly convoluted method. What if the oil price falls, but Bitcoin's value plummets? Why not just buy a currency future priced in some more stable currency? – Nick ODell – 2015-08-03T15:25:41.843
It is not problem. If you live in russia and want to store you money safe you need to put half of money into US dollas, or euros. But it still will be ok for 40/60 or 60/40. From mathematical point of view, function near maximum value does not change very much. For example cos(x)>0.99 if |x| < 0.1
So this protection scheme work even with bitcoin price change. May be I will win or loose extra money but in general it will be zero. Main point of view - to spend less money into transaction costs. If you try to transfer half of money into dollars, and later transfer back you will loose 1-2% – Alexey Tarasov – 2015-08-04T12:42:39.743