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by marshray 3068 days ago
In fact, the Chicago Mercantile Exchange live cattle futures contract is deliverable, whereas the Bitcoin contract is settled in US dollars. I.e., the biggest US commodities exchange literally considers live cattle to be more practical to deliver than Bitcoin.

To me this suggests Bitcoin is not actually a good medium of exchange.

http://www.cmegroup.com/rulebook/CME/II/100/101/101.pdf

https://www.cmegroup.com/confluence/display/EPICSANDBOX/Bitc...

2 comments

It might actually be the other way around. If you want Bitcoins in (say) six month's time, you can just go out and buy Bitcoins now, so it doesn't make much sense to have Bitcoin futures contracts except as a means of speculation on the price and that doesn't benefit from actual delivery. This isn't nearly so easy or practical if you want a certain number of live beef cattle of a certain quality in six months or a year. (Matt Levine talked about this in his Bloomberg column, as I recall.)
The Euro and GBP contracts are delivered 'physically', not cash-settled in USD:

http://www.cmegroup.com/rulebook/CME/III/250/261/261.pdf

I think this is not overvaluing the utility of Bitcoin, but undervaluing the utility of cattle. I, for one, am very bullish on bovine-based exchange.