Bitcoin gained 7% so far today from it's lowest to its highest. If I have a 5% margin on whatever I'm selling how could I ever feel good about trading for it, knowing that 7% was equally likely to be a drop and not wanting to treat it like an investment, where I have to wait for it to gain value again before I can sell?
The weird thing is that this is starting to happen to low-margin businesses that price their goods in dollars.
Restaurant prices around me have gone up anywhere from 25-100% in the last 6 months. I had the surreal experience of telling my wife, as she was phoning in a take-out order, "Ask them what their current prices are. I got different numbers from their Yelp page, the menu photos posted to Yelp, their webpage, and their DoorDash page, with the highest being twice the lowest." That's some developing-country shit right there - normally you think of needing to ask a business what their day-to-day prices are as something you do in Venezuela, not in the U.S.
I'm told this is because their food suppliers have jacked up prices 80-100%, so the restaurants that don't will soon go out of business. Memo hasn't filtered down to all restaurants, though, and some are more reticent to raise their prices than others for competitive or moral reasons.
there are plenty of stablecoins, and most NFTs are priced in ETH. It's also trivial to convert volatile tokens into stable tokens or fiat automatically. This is a non-issue, but is brought up by those who have not paid attention to the crypto market in the past 5 years.
You can reduce it to 0 by shorting Bitcoin futures contracts. You can make it even more volatile if you want. You can change the multiplier on base price change i.e. volatility to be any number between -300% and 300% of its base rate(the caps depend on margin requirement), with appropriate setup.
That's for Bitcoin, but you can do other cryptocurrencies indirectly.
And these are government-regulated contracts, marked-to-market daily.
SketchySeaBeast|4 years ago
nostrademons|4 years ago
Restaurant prices around me have gone up anywhere from 25-100% in the last 6 months. I had the surreal experience of telling my wife, as she was phoning in a take-out order, "Ask them what their current prices are. I got different numbers from their Yelp page, the menu photos posted to Yelp, their webpage, and their DoorDash page, with the highest being twice the lowest." That's some developing-country shit right there - normally you think of needing to ask a business what their day-to-day prices are as something you do in Venezuela, not in the U.S.
I'm told this is because their food suppliers have jacked up prices 80-100%, so the restaurants that don't will soon go out of business. Memo hasn't filtered down to all restaurants, though, and some are more reticent to raise their prices than others for competitive or moral reasons.
eloff|4 years ago
rewtraw|4 years ago
MichaelBurge|4 years ago
You can reduce it to 0 by shorting Bitcoin futures contracts. You can make it even more volatile if you want. You can change the multiplier on base price change i.e. volatility to be any number between -300% and 300% of its base rate(the caps depend on margin requirement), with appropriate setup.
That's for Bitcoin, but you can do other cryptocurrencies indirectly.
And these are government-regulated contracts, marked-to-market daily.
fksadfji12|4 years ago
[deleted]
seriousquestion|4 years ago
ac29|4 years ago