Here's how incestuous the financial market's derivatives have become. We'll use UVXY Options for this example.

Layer 1: Option contract on UVXY (Vix ETF). Basically, a leveraged rental of the UVXY ETF.

Layer 2: UVXY ETF. A fund which holds VIX Futures.

Layer 3: VIX Futures. A paper financial instrument, designed to track the VIX Index.

Layer 4: VIX Index: An imaginary index, calculated based off the midpoint of S&P Option prices to indicate market volatility. Yes, another option contract. Stay with me.

Layer 5: S&P Options. Derivatives on the S&P 500 Index.

Layer 6: S&P 500 Index. A Standard & Poor's subjective calculation of the USA Stock market as a whole. The index itself does not directly own a single stock. It's just a number value.

SUMMARY: A option, on an ETF, on a future, on an Index, on an option, on an imaginary index WHICH OWNS NOTHING.

When people talk about the $1 Trillion derivatives bubble, this is exactly what they're talking about.

This is how bad banks have got. I swear they post credit card charges once a week.

This purchase was on Friday. It's currently EOD Tuesday. But muh Swift! 😅

Universal Basic Income is being proposed here in Canada. FFS.

UBI starts at $1,500/mth. Then the excess cash and decrease in production drives prices higher.

So UBI goes to $3k/mth. Prices go higher.

So UBI goes to $10k/mth. Prices surge exponentially.

Before you know it, bread costs $400 a loaf, nobody works, and the average Joe starts learning about Zimbabwe and Venezuela.

This is bullish for Bitcoin. But it's bearish for humanity.