With respect to our earlier conversation, besides the circular investment, is there any other reporting on the use of derivatives?
They never went away despite being a cornerstone of 2008; derivative were based off of the futures market. I think that’s been around for a long time for crops for instance. What started out? It is a very niche form of financing is what was bastardized into the products that caused GFC.
They haven’t quite gone away
How is this for fresh off the press?
This arXiv preprint is only 4 days old.
"AI Token Futures Market: Commoditization of Compute and Derivatives Contract Design"
https://arxiv.org/html/2603.21690
Analysts projects that applying conservative multipliers of 10-15x observed in other commodities markets to a compute market reaching $350-500 billion by 2027-2028 could support over $5 trillion in derivatives trading Compute.
This is why #finance and #fintech in general are falling over themselves to invest in #Ai, far from being a bubble, its a 'solid' investment vehicle like all the other CDOs...
Here is one of my favourite scenes from "The big short" explaining #CDO.
https://www.youtube.com/watch?v=xbiDrzTd8fE
GhostOnTheHalfShell
Wulfy—Speaker to the machines