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Looking at the history of Wall Street, it should be safe to predict that Block chain technology will be the reason for next global meltdown. They can and will d
by drieddust 9y ago
Looking at the history of Wall Street, it should be safe to predict that Block chain technology will be the reason for next global meltdown. They can and will do wonders generating derivates after derivates and make huge bonuses.
I have never understood why financial instruments like derivates like options etc. exists. I understand what they do but I do not understand what value they add to the economy specifically.
- JoeAltmaier 9y agoDon't add any value, of course they are entropy. But they do aid in liquidity, which is like a coefficient of money flow.
- paulgb 9y agoIf you agree with the premise that regular equities markets provide value (in that competitive allocation of capital leads to a more optimal result than centralized allocation), it seems to follow pretty naturally that derivatives and options provide value by allowing participants in the market to turn more nuanced beliefs into a position than they could otherwise.