A short YouTube explainer (by Kosta Ouzas) about liquidity pockets and why market participants hedge commodity price risk. The speaker gives manufacturing examples (plastic products, petroleum, sugar, dyes/chemicals) and notes institutions also buy Bitcoin as a commodity hedge against future price movements.
Manufacture of plastic products, then oil and. And petroleum is important. You don't want petroleum prices to go up, or you don't want sugar if you're making cakes or sweets or even certain dyes and chemicals. You need to hedge these commodities. So you're buying these contracts for a different reason. And this being Bitcoin, is a commodity of two. So you have institutions that are buying this to hedge against future prices.
