Topic: Futures Bitcoin What Is The Use - page 5. (Read 942 times)

Advantages of Trading Bitcoin Futures:
Some of the smartest traders in the game can be credited for making their moves early. Getting in on a trade before the masses allows early familiarity in terms of managing the risk that exists behind the underlying asset.Trader and investors that were not able to get in on the Bitcoin bandwagon over the past couple of years when the cryptocurrency really took off in a parabolic move now have a new entry point with Bitcoin futures. And the same benefits of trading in the futures market over the spot (crypto) market holds true with Bitcoin as well, with regulated exchanges utilizing very strict rules for price discovery and price movements.
The Case Against Trading Bitcoin Futures:
While the proposition and the excitement of taking part in a newly established futures market pegged to an underlying instrument that has grown 50 folds may be extremely tempting, a risk-averse approach would require a deeper analysis before pulling the trigger.

many conclusions about the future of bitcoin. bitcoin may become an increasingly valuable asset as prices will continue to grow. but if the opposite happens and prices tend to be stable, bitcoin can be an effective means of payment.

It is not just speculation, without having to buy and sell bitcoins. Futures allow people to go naked short - benefit from falling bitcoin prices. This is something which you cannot do in the actual bitcoin market.

Simplification of any process leads to its activation. Big investors are always careful and do not rush to invest,regardless of their belief in bitcoin and the cryptocurrency market.

Speculation without having to actually buy and sell bitcoin.

Futures BTC will make the price of BTC do not rise or fall significantly in a short period of time. With futures, the price of BTC will be more stable.

It's been use as outlined, it has many advantages and for this reason it will remain relevant as a currency. The vast majority of BTC transactions by volume are made in China so the two will remain interlinked.and there are more use of bitcoin if you keep on searching you can find the good of it.

In the futures,bitcoin will be recognized as the world's foreign currency. Bitcoin will now be know as foreign currency in the same way as bitcoin has been know to the population. And it is also possible that in the future it is possible to make online shipping with Bitcoin.So,Bitcoin future is so Bright.  

Future Bitcoin will be widely used in trading activities, especially large trading activities. Why do I say that? I made the above statement because of the great trust in security and security when dealing with bitcoin. It also saves unnecessary costs and time. It is too convenient for a modern lifestyle.

Yes, bitcoin is worth it the first cryptocurrency that give high profit and getting stronger and no one can replace. I know bitcoin is best and I bought bitcoin and hold cause I know in the future it will be more profitable.

With Bitcoin futures, the contract will be based on the price of Bitcoin and speculators can place a “bet” on what they believe the price of Bitcoin will be in the future.

Thank you for the interesting article. People who wanted to start trading on a decrease in bitcoin will never do this, since they are not sure whether growth is in the fall of the crypto currency. These people are afraid of everything and are not ready for change. Therefore, the introduction of bitcoin futures did not benefit anyone.

When I heard that there would be futures, I was glad for that, I thought it was a step to a new level. But now my opinion has changed a lot. It seems that not the right people with their banking mechanisms, created to fix profit without losses, are getting into bitcoins.

I tried to understand the essence and benefits of futures trading BTC
Futures on bitcoin will be traded next week. People who for the last few years constantly trying to convince everyone around that bitcoin is a bubble, must be happy: now they can finally move from words to deeds and begin shorting. But are they right?

Future (futures contract) — a derivative financial instrument, the standard urgent exchange contract of purchase and sale of the underlying asset at the conclusion of which the parties (seller and buyer) agree only on the price level and delivery time.

Craig Pirrong, Professor of business at the University of Houston says:

"Futures largely simplify the game to decrease than to increase, so that the majority of them, apparently, will benefit the bears. Therefore, the appearance of such a tool can reduce the cost of bitcoin".

How is shorting, I have studied the example on the stock market.
EXAMPLE. The investor can borrow paper, say 1 BTC, mind you, he takes not the money. The point is that he took 1 BTC for 16,000 thousand dollars. Sold it for 20,000 Then periscopes for 16 again. Gave ficers 1 BTC back but he got a profit of 4 thousand dollars (0.25 btc). So it will work

However, the futures will simplify the game to increase. The process of acquisition and storage of bitcoins is extremely unpleasant for many investors: you either have to worry about the fact that they are not stolen, or stored on paper, making them difficult to use as trading assets.

A substantial simplification of the process will increase the number of people wishing to open short positions, but those who play on the rise, so much so that their number will grow much faster.

Lou Kerner, partner Flight VC, a venture Fund investing in cryptocurrency. "we believe that from the point of view of fundamental non-market factors-such asset is quite reliable, but they tend to sell out".

Investors with big money still do not really believe in bitcoin and cryptocurrencies. All now wait for the futures I thought of what awaits us after this still greater growth. But now I'm not sure. I think now all that is left us is to wait and see how the market will behave.

I hope the article was useful