https://www.opalesque.com/668671/Cryptocurrency_derivatives_may_calm_volatile_coin_prices867.html
Roy Niederhoffer, President of R.G. Niederhoffer, said at the roundtable that he thinks crypto derivatives will not only calm volatility in currency pricing but help to institutionalize the crypto space. "Derivatives, despite what I think the general public believes, reduce volatility in securities. We have seen this happen with the development of S&P futures as a most obvious example," he said. "Going forward I expect that we'll see a great options market develop. We'll see a yield curve develop and probably over time many other things to do with Bitcoin."
Niederhoffer adds that current volatility in Bitcoin is approximately 4-5% per day, which is about where the stock market was ten years ago. "As derivatives mature, its vol. is going to drop. I think we will see more stability eventually and then it's going to be off to the races because institutions will need to have this inflation proof asset," he said.
Roy Niederhoffer, President of R.G. Niederhoffer, said at the roundtable that he thinks crypto derivatives will not only calm volatility in currency pricing but help to institutionalize the crypto space. "Derivatives, despite what I think the general public believes, reduce volatility in securities. We have seen this happen with the development of S&P futures as a most obvious example," he said. "Going forward I expect that we'll see a great options market develop. We'll see a yield curve develop and probably over time many other things to do with Bitcoin."
Niederhoffer adds that current volatility in Bitcoin is approximately 4-5% per day, which is about where the stock market was ten years ago. "As derivatives mature, its vol. is going to drop. I think we will see more stability eventually and then it's going to be off to the races because institutions will need to have this inflation proof asset," he said.
