Bitcoin options purchased for $1 million will soon be worth nothing

The options, bought on trading platform LedgerX for nearly $1 million in the days before Bitcoin reached its highest price last year, expire on December 28, 2018. For investors who predicted a $50,000 price for Bitcoin to make any profit, the price of the asset would have to rise by 1,400%.

Ari Chow Paul, manager of the cryptocurrency fund BlockTower Capital, noted that he was buying options while selling the fund's bitcoins. In a December 2017 interview with CNBC, Paul said the trades provided him with some profit at the time, and also helped him reduce his risk if the market fell and generate a healthy profit if the price of Bitcoin rose above $50,000. 

At that time, Bitcoin was trading at $16,200. Since then, the virtual currency has been under constant bearish pressure, according to Bloomberg, this Friday the price of Bitcoin fell another 7.7% to $3,360. 

Paul, a former portfolio manager at the University of Chicago, declined to disclose his fund's performance. BlockTower representatives also did not comment. 

Employees at LedgerX, the first regulated Bitcoin options exchange in the United States, refused to disclose the identity of the seller and buyer of the options, but confirmed the transaction with a notional value of $13.75 million. 

We wrote about this amazing deal in article dated 12/20/2017

According to www.iol.co.za