You are viewing a single comment's thread from:
RE: Which is cheap? 1 BITCOIN = $2,755, 1oz GOLD = $1,263 or 1oz SILVER = $16.84? They ALL ARE..!!
Hi Stephen, I'd agree with the systemic risk that derivatives still pose. I am still trying to wrap my head around the blockchain concept though. How exactly will it help if derivatives are put on blockchains? Is it a matter of traceability?
I read somewhere that some of these derivatives had about a MILLION pages of documentation, making it humanly impossible to trace what they actually contained and what their value supposedly was based on.
Will Blockchains improve that somehow?
This is very simple to answer. You cannot fudge the Blockchain..!! By having the Financial Derivatives on a digital distributed ledger will eliminate the risk that most of these Derivatives pose, in as much as no one really knows what they are worth..!! Stephen
So if I understand correctly:
you mean their artificial inflation and leverage by constant repackaging won't fly anymore because the constituent parts's value of the derivative can be better calculated because they are all traceable.
What happens though with the underlying value of the assets, e.g. like the bad loans etc. : on paper they look like legit assets but in reality they are very shaky how is that solved by the blockchain, is there any way to track, say repayment rates and calculate true value of the derivative instantly?
@stephenkendal
I will want to discuss with you about IOTA and their claim to have better technology than blockchain.
please bare with me in pvt - mihaiasumcinei@ gm-eail.com
Good point. However whatever the blockchain can bring to derivatives does not change the fact that they are destructive financial instruments.
I write about silver. Here is my latest post: https://steemit.com/silver/@hgmsilvergold/if-you-are-a-silver-and-gold-stacker-this-is-for-you
kindly follow me aswell