Only Big Broker Offering CME Bitcoin Futures Allows Whales to Short
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Understanding how Bitcoin Futures will affect the price lately is quite a challenge for many of us. So in this article i've compiled dozens of youtube comments from Chris Dunn' video "Bitcoin Futures: Good or Bad for Cryptocurrencies? In fact I would say it will be the exact opposite, through hedging.
Hedging will have the effect of stabilizing Bitcoin price. Hedge funds use rumors and journalists to spook the market and drive prices down. I can't buy futures with my stock market account. The futures price will be the overriding price, once this occurs. Your Coinbase and other crypto websites will have to adopt the futures prices or else they will just disappear.
Kinda like Kitco vs the Comex, with precious metals. Look what the LBMA did to silver and gold. They will short and long futures when they own nothing. All futures do is provide an avenue for manipulation by flooding the market with short or long contracts to control price swings. This will be the only way to control bitcoin. My only question is what happens to other cryptos in relation to the bitcoin price and if bitcoin becomes manipulated, will ppl move out and into a different crypto like ethereum or litecoin and then kill the whole bitcoin derivatives market?
We all like Crypto because it operates outside of the institutions that are keeping us safe Haha!! This is how these Dogs operate. There will be heavy shorting with leverage. But now they can short without buying in? They have so much money.
Btw if Bitcoin will crash, alt's will crash too. Bye Bye life savings. This will obviosly create hugh problems for bitcoin, and as long the big traders can make more money with bitcoin than with fiat these problems aren't solvable. But when bitcoin fails altcoins will rise and cryptocurrencies will get alot of attention. Means that they do not invest into the underlying value, the Bitcoin, but the Paper basing on this. Its the same thing how gold prices get supressed and managed by the big money.
Control the price of the futures and you control the prices of the underlying asset. I think this will slow down the uprising of the bitcoin and makes it less volatile. Might end up suppressing BTC price too This was bound to happen with the process of crypto mass adoption which everyone clearly wants.
For me, the purpose of block chain is that it cannot be diluted or leveraged. If gold was to go to it's real price the US dollar would disappear tomorrow or raging inflation would cripple the US economy. Hence the US dollar is actually backed by the US "military industrial complex".!!
Now, since the big players on stock market, banks and etc cant directly affect it, they will introduce "features" like BTC futures and more to come likewise in future I assume to mess it up indirectly. As they said, they want to tame it. They definitely do not want this to happen and they want to keep their power it seems. So for that reason, I do not agree with this thing at all.
Plus whatever Coinbase is doing now I am unkeen of. We had a good thing going I believe, I hope it wont get fucked up. What do you guys think of all this? Because it's cash and not bitcoin, arbitrage is not possible between the futures and the bitcoin market itself.
Bitcoin price is isolated from shorts. All wall street is going to do is use this as a hedge. They can't do anything with bitcoin except buy and sell, like everyone else. I can now see the case for Bitcoin Cash to take over Bitcoin.
I believe that over the short to medium run futures on digital currencies are a bad thing as governments will have a tool available to manipulate the price downward to influence public opinion.
This way government will be able to buy time and launch country cryptocurrencies and make the ppl believe they are equivalent or even better than BTC. The constant price manipulation of gold and silver contracts by wall street firms over years does not bode well in this respect. In the long term real supply and demand will determine the price of bitcoin that will eventually go into stratospheric territory in the next global financial crisis.
So my advise for hodlers to hold, new investors to stay on the sideline for now and get in at lower levels and traders be alert for greater price swings and adjust risk management strategies. But I never made a dime trading futures.
Bitcoin was taken over by Blockstream representing big finance years ago. This is just a natural progression of those events. I agree with you on how big institutions are playing the bitcoin using their horrible tool called futures. It's gonna be like the gold market. Authors get paid when people like you upvote their post.
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