I have spent most of the week reading articles about the possible impact of Bitcoin Futures, here is my take on the subject.
First of all, we need to understand that once the CME Group, the CBOE and Nasdaq enter the bitcoin game, all traditional whales are going to be converted into small golden fishes. They will take Bitcoin Trading into a whole new level where institutional entities will enter the space.
There is also a lot of interest from big players for Bitcoin to fail, one could expect that a lot of institutions will put big bucks into shorting Bitcoin. Now, on crypto exchanges, shorting is not that bad, since they need to borrow Bitcoin in order to be able to sell it, there is always a demand for Bitcoin somehow. On the future market anyone can short Bitcoin without having any.
But what worries me the most about Bitcoin being added to the futures market is that it will take away its best feature and the single most solid incentive to buy and hold bitcoin: SCARCITY.
Futures will make Bitcoin´s scarcity irrelevant. With a limited supply and an increase in demand Bitcoin can only go up really, but Bitcoin Futures will allow anyone who wants to buy Bitcoin to go to the futures market and buy a “derivate”, which is an asset that follows the price of Bitcoin but it is not Bitcoin, so when someone goes “long” on the futures market that action will not take Bitcoin out of circulation.
In the same way, people who sell will not really sell Bitcoin, that is because they don’t have any to sell, but that doesn’t matter, they can sell this “derivative” as much as they want and that selling pressure will cause a negative psychological effect that will impact Bitcoin price accross crypto exchanges.
My conclusion: Bitcoin so far has been a peaceful ocean, where everyone involved is a Hodler, a hobbyist, a developers or a philanthropists, these people are into Bitcoin because they believe it can change the world for the better. Now, the introduction of Bitcoin Futures, will bring the real "evil whales", who will short Bitcoin and do everything in their power (and they have a lot of it) to destroy it and profit from its destruction…. WAR is coming.
Source: Battlefield.com
I feel a bitcoin war coming soon as the price rises and much more awareness spreads to bigger businesses . I’m not sure what to expect when they is a limited supply
they will play their game on the futures exchange and the crypto world will remain a rebel to corporations and centralised powers as it always been. i don't think it will change the game that much. i think it may bring more awareness the cryptocurrency world.
Brother, that is the future, the btc is here to stay, and every day the war is closer.
Many are upset because they ran out of their slice, the big bankers will not stop attacking us. In this month there will be a lot of tension in the market, new investors will come to support Bitcoin. Pure heavy artillery. the best we can do is grab the hard btc because after the quiet comes it will be a silent and dangerous war.
Hermano, ya ese es el futuro, el btc llegó para quedarse, y cada día la guerra esta mas reñida.
Muchos están molestos porque se les acabó la macoya, los grandes banqueros no dejaran de atacarnos. en este mes habrá mucha tensión en el mercado, vienen nuevos inversores a apoyar el bitcoin. Pura artillería pesada. lo mejor que podemos hacer es agarrar duro al btc porque después que venga la bonanza sera una guerra mas silenciosa.
I agree with your points @chitty. In fact Bitcoin made some persons madness. BTC current movement very crazy. It's behave really mad. Awesome return investment.
Ok I was totally thinking this was a serius post until I see the final photo ahaha, Love battlefield. But I agree with you it will become a cryptowar BTC can have real issues and people going crazy soon.
This soungs interesting so what do u think will bitcoin will able to hold its position in market????
I dont really know, it could go up a lot and then down or it could just crash!
@chitty,
Friend just after reading your article I actually feel horrible! As you said all big whales in current BTC Ocean will become Gold Fishes when Futures arrives! Yeah those whales will busted everything and say they made a nice profit by using it!
Excellent review about upcoming chaos!
Cheers~
Crypto has always been madness and defiant of all common laws and practices. The experts have been wrong about it at every single step. That you are describing the past times as a peaceful ocean, is quite worrying.
As far as I can tell, the futures are there only for BTC, not for other altcoins. What do you think, will some altcoins (especially Ripple, as it seems to be the least volatile of the bunch until now) become safe havens?
Or would they also be engulfed by the tidal waves caused by evil killer whales?
Bitcoin price tends to impact all other altcoins, if bitcoin crashes all Altcoins will follow..
Expecting a hard and fast law from a tendency is arguably not the wisest position, my friend.
Best of Crypto luck to you!
@chitty - Sir whole world now talking about BTC, it brings killer whales favoritism on BTC & according to your article the future is not good as we thought.... You described the current situation & upcoming problem very well Sir....
+W+ [UpVoted & ReSteemed]
I am lock and load :D ready to the war!!!
It will bankrupt them short the biggest bull market in history!
It is very scary and terrifying for the future of the world
I thought that Bitcoin was a good thing and was useful to everyone but it seemed to have disadvantages @chitty
Why should the Bitcoin price fall, if most of the holders are hodlers? Only if the majority panics, but I hope the majority doesn´t get influenced by the banksters instrument. So far all the negative statements of the banksters didn´t lead to a panic selloff, so I am cautiously optimistic that also the BTC futures won´t work in that way.
I have been thinking about this a lot recently. The question I am asking is how much effect exactly will futures trading have?
Evil whales sell paper-BTC on the Futures market creating a discount compared to the price on the physical-BTC exchanges. They can do this until the cows come home because it then needs Arbitrageurs who will sell their physical-BTC to buy the paper-BTC and pocket the difference as profit. This is where the actual selling pressure on exchanges would come from. Basically HODLers who are willing to sell out physical for paper BTC.
The thing to watch will be the price comparison between physical and paper BTC to see if they are really going to be able to use futures to Wag The Dog.
Wow. Yep the big boys are coming in this is going to be exciting. I do think some of your worries are unwarrented. If the big boys go short on an ever rising asset they are going to get margin called, -big time-. This could result in billions moving from the "I hate bitcoin camp" to the "I love bitcoin camp." Some allegations of manipulation are warrented, as there has long been attempts on gold, silver and oil. Ultimately, though, -with possible the expection of diamonds- these attempts have failed in the long term. People who thought we were on PEAK oil, -a huge thing ten years ago- discovered fracking. The gold and silver markets, still come back to the price of mining after hundreds of years of attempted government manipulation. Only the diamond cartel, drug cartels, and to some extent the oil cartel have been able to manipulate markets long term. That said this is going to be exciting grab some bitcoin, grab some popcorn and sit back for the show. There is a new technology in town and it is a game changer. Traditional finance is going to learn about block chain.
You bring up a very valid point. With only 21M BTC total available, will the shorting crowd simply overwhelm the entire sector?
This is one thing that concerned me. There is nothing to stop Wall Street from creating as many shorts as they want and doing it naked too.
One thing to offset is the fact that many of the hedge fund set up so far are going to buy the actual tokens. That might not be the case as more funds open up in the future. That market, too could get overwhelmed.
We know there are instances where they were able to manipulate the gold and silver markets, two such markets that are much bigger than BTC.
It could get very ugly.
The gold and silver manipulation occur at the Comex. It has even been demonstrated in a court of law that the comex is rigged. When sentencing occurred, JP Morgan was relieved of all responsibility for their actions, the justification being that they are operating as an agent of the Government!
To be clear, what they are doing is shorting the paper derivative and buying cheap physical silver, then creating more paper derivatives out of that recently acquired physical silver.
You cannot fake Bitcoin, so anyone institutional or individual is a fool to play the futures market with an asset as rock solid as Blockchain assets. Their whole game is based off of fake derivatives and we need to make sure to be spreading the word about how that is NOT the real Bitcoin or ANY real blockchain asset, so that people know what they are participating in. Good luck cashing out ANY paper derivative in a financial crash.
Interesting post. Shorting also means( you sell at high price, to buy at low price). I do not have dark picture, but only time will tell. In short term they probably can crush bitcoin, but long term bitcoin is here to stay. Also demand for money is like 200 trillion, and we are very far from that. Demand for bitcoin is going to raise, while supply is limited.
What has been happening to a lot of traders of late, is selling high to buy back low - but the low doesn't materialize! So they have to buy back in high. Less and less short selling occurring due to this factor. More HODLing and thus - more value!
I am holding for a long term( 10-20 years), but also trading- I have to admit that I will buy ONLY on dips.
If big whales goes shorting !!! The mother of all short squeezes will happen and every one will stop shorting !!! This is Bitcoin !!!!
Lets hope you are right.
Chitty you would see this happening .
Currently Bitcoin has huge demand coz it's giving better return profit us. In future will become BTC war still peoples. I think BTC price depends psychological effects. Nice review @chitty.
plz refer bitcoin cash
I really dont know what you are talking about, lol
divide and conquer when it hits 100k
No way they cannot short as many as they can !!! The number of futures will be supported by actual number of coins brought by the exchange !!! The ones shorting (whale or minnow) will burn their fingers as they might not sufficient volumes to buy again as price may jump off quickly and the shorter need to cover his shorts for a loss !!!
its a derivative market, no actual coins being bought or sold... just a representation of the bitcoin price..
Nope !!! So do you think exchanges can provide users sell as many as Microsoft/Amazon more than actual number of shares. This can never happen. Actually exchanges buy and keep them available for future trading or margin trading.
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Undoubtedly a very relevant news, what awaits us?
I think the bitcoin will reach prices that nobody imagined in such a short time, I see the bitcoin within a year at $ 100,000, let's buy bitcoin!
Good conclusion of what you read @chitty