[arin-ppml] ARIN-prop-146 Clarify Justified Need for Transfers

[Owen DeLong]

On May 5, 2011, at 3:41 PM, Jeffrey Lyon wrote:

>> Which is a nice euphemism for "Speculators increase prices".
>> 
>> Owen
>> 
>> 
> 
> This is not necessarily true. Speculators can spark an influx of
> supply and crash the price of a commodity. Providing liquidity allows
> for transactions to execute quickly and increases the supply of a
> commodity that is readily available for purchase by those in need.
> When speculators buy, prices increase, then supply increases, then
> speculators sell, which causes a price decrease.
> 
For a market where additional supply can be created, this dynamic sometimes
works out.

For a market where there is on additional supply which can be created
and only the movement of the finite quantities from one holder to another,
as is the case with IPv4 addresses, it tends to operate more along the
lines of what I stated.

If the market feels additional liquidity is needed, I'm sure that those who
need addresses will be perfectly capable of offering higher prices without
the help of speculators.

Owen