Aren't futures all backed by some financial entity? The first problem is it's a third party. That party may go bankrupt. Plus, it's probably in another country. McDonald's is in all the countries.
It's also best when it's backed by the company honoring it. If Ronald Bank decides that they're one day no longer in partnership with McDonald's, they might choose to swap it with Whoppers, which are not quite equivalent, but that's a flexibility that some people might want to have.
I don't want a thousand Big Macs worth of futures though. I just want maybe 10. Or a hundred. If I'm broke or get labeled a terrorist or refugee, I can trade one for food. If say, any McDonald's accepts them, they'd be more liquid than USDC.
Plus McDonald's has plans lasting for decades. My futures may no longer be valid in 6 years.
Aren't futures all backed by some financial entity? The first problem is it's a third party. That party may go bankrupt. Plus, it's probably in another country. McDonald's is in all the countries.
It's also best when it's backed by the company honoring it. If Ronald Bank decides that they're one day no longer in partnership with McDonald's, they might choose to swap it with Whoppers, which are not quite equivalent, but that's a flexibility that some people might want to have.
I don't want a thousand Big Macs worth of futures though. I just want maybe 10. Or a hundred. If I'm broke or get labeled a terrorist or refugee, I can trade one for food. If say, any McDonald's accepts them, they'd be more liquid than USDC.
Plus McDonald's has plans lasting for decades. My futures may no longer be valid in 6 years.
Yes, but McChicken futures :)
Futures have an expiry date, dont they?