In this report I discuss the implications to bitcoin and its price as the CME group announces it will launch a bitcoin futures contract before the and of 2017.
In this report I discuss the implications to bitcoin and its price as the CME group announces it will launch a bitcoin futures contract before the and of 2017.
Ridiculous. BTC is traded globally, so a single futures exchange in US cannot perpetrate a global scam and "manipulate" the price.
Per all futures contracts, there is potential for various entities to take more than normal risks by hedging in one direction or the other, and as a leveraged market it is of course possible to impact BTC beyond the impact of the $$ you put at risk.
You need to look at the positive side of the message.
This is one step closer to enabling the "big money" from Wall Street and London and Hong Kong and Dubai to get more involved in the BTC market. And as those big money pools coming rushing in, the price of BTC is going to go up due to limited supply.
This is ultimately a small step in adding more stability to the price of BTC.
And more stability also helps bring in the big money pools.
Stability does not mean constant price. It means somewhat lower volatility.
This is GREAT NEWS for BTC, as a first step towards $10K
It could very well trade to $10k but in the long term it means the Federal Reserve and its agent banks will be in complete control of the price.
What you don't get is that this contract will be cash (dollar) settled so it will eventually set the price of bitcoin. Wall Street and the City of London will eventually hold positions in notional amounts of bitcoins far greater than the amount of bitcoin ever mined! How can that be a good thing for bitcoin?
I disagree. If they put enough fiat at risk to be able to temporarily control BTC price, there has to be entities willing to put that much at risk. They will have same risk as exists with gold. In the face of huge buying power and pressure, typically triggered by some global instability or due to concerns on fiat stability, gold and BTC price breaks higher and that becomes self-fulfilling as a short squeeze.
Markets always correct. As long as you are not leveraged and dont go bankrupt first, you end up in a good space in the long term.
So I'll continue to hold physical gold and BTC.
In next 10 years, gold will trade at $5K and BTC will trade at $50K.
I am not in a hurry so I dont care if this doesnt happen in 2 years or 5 years.
Markets cannot be manipulated in perpetuity, in favor of bad fiat money.
"Markets always correct. As long as you are not leveraged and dont go bankrupt first, you end up in a good space in the long term."
How exactly can an entity with unlimited fiat issuing capability be bankrupt? How do you think they've been able to cap the price of gold?
You misunderstood. You can hold physical Gold and BTC, in anticipation that US fiat is in for a crash
As long as you don't go bankrupt by trying to leverage your gold or BTC, then you can wait out the crash of the fiat
There IS NOT SUCH THING AS UNLIMITED FIAT
That is the underlying fallacy in your assumption
Fiat is only infinite until the moment it isn't.
If you dont understand - look at the Venezuelan Bolivar, which was infinite up until the moment it wasnt
I get your point, but Venezuela can't be even remotely compared to the USA and it's FED. They're not even in the same galaxy.
"There IS NOT SUCH THING AS UNLIMITED FIAT"
The stock market's performance since 2007 says otherwise. That kind of levitation can only be achieved via market manipulation.
The FED's power in the US is not limitless either. They have levitated the market for a decade, but that is a short time in bigger picture
Patience.
I promise chickens will come home to roost.
If you believe fiat like the US dollar is actually infinite, and can be used to control and manipulate the price of any asset to any value .... then ...
it sounds like a God-like type of currency, totally omnipotent.
If you really believe that, why are you not putting all your money into the omnipotent currency?
The reason - you don't really believe US fiat is infinite or omni-potent. In fact you believe the opposite.
So no need to get upset about potential for temporary price manipulation. It will end in due course.
The tail isn't going to wag the dog.
The S&P 500 futures are cash settled, you don't see people in alarm that the futures will set the aggregate index price.
The same for the Eurodollar futures complex.
Gold has been ring-fenced, Bitcoin won't be as easy a target - you can't fake warehouse receipts that you have Bitcoin like you can rehypothecate gold.
Sorry @maneco64, but you're simply wrong on this one.
I agree 100%. This is not a good thing. This will make the 21 million cap meaningless if Bitcoin isn't even changing hands. Greed once again rules the day. The price will sky rocket in the short term but eventually it will crash in a big way as the big players take their profits.
Yes and the fact that it will be a cash settled contract or non deliverable means that the issuer of the fiat dollar (Fed) and its agents (the bankers) will have infinite amounts of fiat money to rig the price.
It is a perception that fiat is infinite. That is only true to a certain point in time. What point in time? The moment when it is no longer perceived as infinite and possible to present as infinite.
Ask Venezuela. Some people thought Bolivars were "infinite". They were wrong, relative to an infinite supply of Bolivars having any value.
Markets will correct. Sometimes it will take a long time. But it will happen.
Agreed. Bitcoin was created after the 2008 crash to protect against institutions just like this.
It will become the bubble everyone is crying it is now and once the Wall Street players have made their millions and take out their profits, it will be the Bitcoin enthusiasts and small time investors left holding the asset that people will then turn round and say "see we told you it was a bubble".
To me this is another nail in the coffin of Bitcoin. The big players in Bitcoin seem to be more about making money then the ideals of a stateless currency. The bankers realised that they can't beat Bitcoin so they are just going to co-opt it like they do with any political movement that gets in their way. With even more leverage to manipulate Bitcoin they will just whipsaw the price until they own the vast majority of it, if they don't already, through front men and entities. Undoubtedly there is still money to be made in Bitcoin but it isn't the bastion of freedom that we hoped it was.
Luckily Bitcoin spawned blockchain technology that I still think is their undoing. I think the next big thing is going to be privacy coins, and decentralized markets.
I read the article this morning on CNBC and I thought this is bad, so I sold half of my position in bitcoin it resembles what they did to Gold eventually they perfected the way they manipulate the Gold price and eventually they will do the same with bitcoin. I’m disappointed 😔 that we cannot do nothing about that, same scam as the manipulation of Gold the difference is that you can’t get any fiscal bitcoin.
hmm I am skeptical.
Bitcoin and especially blockchain technology has defeated everything that has been thrown at it.
What is to stop people just jumping onto Etherum or dash or other alt coins. The infrasrtucture is there and there is nothing the banks can do about it. The dollar is losing is status as the world´s reserve currency. Bitcoin and other crypto currencies will be preferred over fiat dollars or other fiat money.
Agreed, This should be an interesting battle. The "club" will be exposing their dirty tricks into a very activist and vocal community. An unintended consequence could be to break the fix on gold and silver when CME further expose themselves as being fraudulent. People will ignore the CME and leave them to play in their bucket of paper and move on to the "real" markets.
Very interesting
You are correct they will try to control the price of bitcoin through the futures contract.
https://steemit.com/bitcoin/@goldgoatsnguns/bitcoin-futures-is-the-next-phase-of-attack-against-cryptos
Ah I get it. So it is like the gold/silver paper game again. Question is who if anyone that believe in bitcoin would care about the paper fake price? The reason people think bitcoin is superior is that gov/bank don't have control so a gov/bank sanctioned market would be a big no no for those that understands it.
True as I don't care about trading gold and silver futures but the bankers still control the price of the precious metals. This bitcoin futures contract is even worse because the bankers will not need to worry about delivering or taking delivery of bitcoin as it is a cash settled contract. With access to hundreds of billions of free fiat money the bankers will be in charge of the bitcoin market just like they are in charge of the precious metals.
I came to the conclusion that at some point there will be PM shortage as people realize they have been lied to and all fiat will go to zero, PM and may be crypto as well will do very well.
They'll be in charge of nothing.
You can't create Bitcoin by decree, it exists via proof-of-work on a predetermined schedule dictated by the code on which it runs.
Derivatives won't do anything to the underlying, just like they don't do anything to the S&P 500 components traded in index futures.
You can manufacture gold warehouse receipts, clad tungsten, or infiltrate Canadian Royal Mint bars, but Bitcoin is verified and absolute due to the protocol and global hashing network keeping it secure.
Your premise is flawed, plain and simple.
Now we know why the SEC squashed all previous Bitcoin ETFs. It had nothing to do with liquidity, valuations or consumer protection. It had everything to do with creating synthetic bitcoins made of of dollars to be used by the big banks to dominate and control the valuation of the market.
Perhaps we should have the expected values like bitcoin futures that only hold an uncertain bitcoin promise, factored out on crypto market cap pages like coinmarketcap (dot) com for honest overviews of sound bitcoin.
The cme group's Leo Melamed doesn't say that they will "tame" bitcoin for nothing. Anyone that knows anything about the silver and gold futures knows what this is about. The banks want to short bitcoin and manipulate the price period. The only question is....will it work? Anyone not concerned about this is a fool. Excellent report Maneco!