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Other commodities are volatile for different reasons. Natural gas is volatile because it's literally volatile, so storing and shipping it is expensive. Grains a
by omellet 13y ago
Other commodities are volatile for different reasons. Natural gas is volatile because it's literally volatile, so storing and shipping it is expensive. Grains are volatile because of variable growing seasons. Onions are volatile because US Congress banned futures markets for onions. Even so, none of these are nearly as volatile as BTC has been.
- pc86 13y agoDo you know why Congress banned onion futures? That seems... random.
- rdouble 13y agohttp://en.wikipedia.org/wiki/Onion_Futures_Act http://en.wikipedia.org/wiki/Onion_Futures_Act
- jvm 13y agoRight, my point is just that futures markets will of course reduce BTC volatility, but they're not going to make it nearly as stable as TIPS or something. Parent was saying it was going to "really stabilize." Speculating, I think an optimistic outcome is that it will end up with volatility similar to an equity index (which themselves effectively have futures markets).
- omellet 13y agoIn a perfect world, you're right. But it's inconceivable that there would be a BTC futures market with enough liquidity to make this happen, since a) the BTC supply is relatively small and b) no CFTC-regulated exchange is going to touch BTC as long as it exists its current quasi-legal state.