Theories on bitcoins muted volatility?

[Pekelo]

Volatility decreased as more and more institutional money moved in. Be careful what you wish for. Crypto bros welcomed when HFs started to invest in crypto, but it also caused BTC just being another boring (and eventually lower and lower beta) tech stock. This is the fundamental explanation.

The technical explanation could be that arbing between the exchanges got so good that even a whale dumping or pumping can not move the price that much (thus volatility died) and now the major force for price action is HFs buying or dumping.

 

[SunTrader]

Why? The thing is priced at $20K, and the BTC futures contract is for 5 BTC.

Why don't you go and try to trade some BRK.A on margin. Will you complain that is too much as well? Know the details of what you are trading with leverage before complaining.

Margins are also affected by volatility. And volatility has come down dramatically .... while margin has not.

 

[syswizard]

Margins are also affected by volatility. And volatility has come down dramatically .... while margin has not.

I need to call the CME Group on this....their margin setting process is obviously flawed.

 

[gwb-trading]

Bitcoin Fails to Produce 1 Block for Over an Hour
An 85-minute block interval left more than 13,000 transactions stuck in a pending state on Monday.
https://www.coindesk.com/business/2022/10/17/bitcoin-fails-to-produce-1-block-for-over-an-hour/

 

[Overnight]

I need to call the CME Group on this....their margin setting process is obviously flawed.

Go for it man.

 

[syswizard]

Bitcoin Fails to Produce 1 Block for Over an Hour
An 85-minute block interval left more than 13,000 transactions stuck in a pending state on Monday.
https://www.coindesk.com/business/2022/10/17/bitcoin-fails-to-produce-1-block-for-over-an-hour/

So the cash market affected the futures market....correct ?

 

[Overnight]

Bitcoin Fails to Produce 1 Block for Over an Hour
An 85-minute block interval left more than 13,000 transactions stuck in a pending state on Monday.
https://www.coindesk.com/business/2022/10/17/bitcoin-fails-to-produce-1-block-for-over-an-hour/

Hold on, hold on...This is something I was not expecting. @johnarb help me out here...

So...BTC transactions cannot occur unless new blocks are being discovered? What happens when the last block ever is mined in 2187 or whatever it is? Does the blockchain then enter a state of stand-still and nothing happens?

 

[syswizard]

Both BTC and MBT contract volume has fallen off lately. 1st one is BTC, the other is MBT.

 

[johnarb]

Hold on, hold on...This is something I was not expecting. @johnarb help me out here...

So...BTC transactions cannot occur unless new blocks are being discovered? What happens when the last block ever is mined in 2187 or whatever it is? Does the blockchain then enter a state of stand-still and nothing happens?

It's normal, all counterparties to a Bitcoin transaction know that the confirmation is not instant and the ability of the next Bitcoin miner to solve the next is always based on luck

What's important is that the transaction is in the mempool and has a high enough transaction fee. This signals to the receiver that the sender is acting in good faith

If time is critical, i.e. paying for coffee at a store, sending btc through the Bitcoin Lightning Network is the proper method

I don't know when that article was written, but Bitcoin network seems fine now

-------

After the last bitcoin is mined, the bitcoin miners will receive transaction fees for solving the next block

In ~2036, the reward for solving a Bitcoin block will be less than half a bitcoin

 

[syswizard]

I contacted the CME Group's risk management unit and they are going to review the BTC margin requirement.
It's currently set at $25,324.