Options would be good if they are done correctly. They would provide a proper hedging mechanism to buy time to sell the coins in an efficient manner.
However, options contracts are only as good as the counterparty.
Markets are being very efficient today. It's over the weekends where the bias is lopsided to the downside. Sellers can add liquidity over the weekend, but buyers cannot!
It would actually be more stable for bitcoin if the markets would close for the weekend. People are used to the 24/7 operation, but the fact is it puts downward pressure on the price if only one side of the trade can put up money.
However, options contracts are only as good as the counterparty.
Markets are being very efficient today. It's over the weekends where the bias is lopsided to the downside. Sellers can add liquidity over the weekend, but buyers cannot!
It would actually be more stable for bitcoin if the markets would close for the weekend. People are used to the 24/7 operation, but the fact is it puts downward pressure on the price if only one side of the trade can put up money.
Agreed.
If 6.30 holds for a day we should see a reversal to the upside throughout the week.
*not* agreed at all! ok … partially agreed. If we had a monopoly, I would love to have order settlement once per 24h or once per week. Why should the price change faster than I can settle a purchase? As we will never have a monopoly, people will put their money where they can react in case of significant news and therefore the exchanges would only stop 24/7 upon being regulated.
(Actually a pause in price-making would definitely not increase stability as users would get nervous against that deadline on Friday. Also the exchanges would need extra capacities for the unnatural activity spikes.)
I only agreed with highlighted text that the price tends to go down on weekends due to inequalities in bid/ask liquidity.
But I don't think that closing exchanges for a weekend is a good solution.
It doesn't seem compatible with vibrant 24/7 Bitcoin economy.
By the way I only learnt about "banking days" and "non-banking days" when I first transferred some fiat to the BTC exchange!
And I thought it was totally silly that I cannot do electronic transfer on a weekend in the age of the Internet.
If some exchanges become regulated they will be wiped out by 24/7 competition.
