Lashi.shota on Nostr: Agreed, they are more volatile now, for example the Gilt crisis (2022 GBP) or a high ...

Agreed, they are more volatile now, for example the Gilt crisis (2022 GBP) or a high Treasury issuance changes the USD price. But they are still used for long term contracts where the creditor and debtor needs a high assurance that their income is stable, usually you measure volatility with the most liquid goods in the supply side of the market, aka basic goods/services that one needs (eggs, milk, electricity...). With btc and to less extent gold, those basic items will be far more volatile to priced in.

Gold was great in the gold standard era and is still very good for measuring the state of the market. But if you want stability from gold or BTCs, they need to adjust to spikes in demand by supplying gold or BTC derivatives just in time, this would help to lower the high volatility. With gold the markets adjust with more mining and hedging tools, with btc it's impossible because the btc supply side is fixed and if you issue btc IOUs the bank is at great risk of speculative attacks and short squeeze because the btc base issuance does not adjust to spikes in demand.

I hope this makes sense.