Great responses. Thanks.
I will need to investigate further to get my head around it.
But, if this is people basically betting on the price in the future, then they are not really influencing the price, unless of course they are betting and also buying HUGE amounts of bitcoin, creating an artificial scarcity, driving the price up.
OR by dumping a huge amount on the market, possibly driving the price down.
Does that sound like I'm in the right ball park?
Topic: How could futures impact bitcoin? - page 4. (Read 602 times)
I don't fully understand the Futures market.
How could futures impact bitcoin and its price?
How could futures impact bitcoin and its price?
Future is a great OPPORTUNITY to bitcoin. It is like embracing the bitcoin while time goes by. Technological advancement are continuously taking place and with the help of internet everything is easily to access. The time comes where all of the mall will accept bitcoin as their payment and every transaction is very fast.
Bitcoin is a very comfortable crypto for it’s users. There are many altcoins in cryptocurrency but bitcoin holds that’s top position since the start till now. World is digitalizing day by day and many other crypto growing up so it is very hard to say about the future of any crypto but bitcoin is so much advanced than other.
We can’t say properly about its future because it changes its value very quickly and no one knows that will increase or lower. If it gives more benefit then people will consent more into it and it will go ahead. All of things depends on its value, benefit and peoples mind.
We can’t say properly about its future because it changes its value very quickly and no one knows that will increase or lower. If it gives more benefit then people will consent more into it and it will go ahead. All of things depends on its value, benefit and peoples mind.
I don't fully understand the Futures market.
How could futures impact bitcoin and its price?
Here's the deal with these futures. You don't actually hold any bitcoin on your own, but you do own some sort of financial instrument given by the CBOE, and it states that they hold bitcoin on the investor's behalf not precisely but somewhat like that. This derivatives is only to be paid in cash and it'll affect the price is institutional buyers would love to influence the price on their own, and this could be a big deal later on.How could futures impact bitcoin and its price?
I'm still sort of new to these things, but why would people buy these futures, instead of simply buying Bitcoins instead? Not pay any middleman. I hate the concept.
Also, isn't that like gambling?
I don't fully understand the Futures market.
How could futures impact bitcoin and its price?
Here's the deal with these futures. You don't actually hold any bitcoin on your own, but you do own some sort of financial instrument given by the CBOE, and it states that they hold bitcoin on the investor's behalf not precisely but somewhat like that. This derivatives is only to be paid in cash and it'll affect the price is institutional buyers would love to influence the price on their own, and this could be a big deal later on.How could futures impact bitcoin and its price?
Futures impact in bitcoin? If you buy today and just hold it for a year i think your future will become a better future, i know bitcoin will be increase more than a year so its better to hold now.
No, you misunderstood the question, I believe. It is about the futures contracts on CME. Yet surely your advice is probably great, for it's a pretty safe and easy way to earn some money.
Futures impact in bitcoin? If you buy today and just hold it for a year i think your future will become a better future, i know bitcoin will be increase more than a year so its better to hold now.
But actually not only the hodling can give a huge impact on the future of bitcoins since there are somethings that needed to do before bitcoins gain success and it need to circulate so that the bitcoin economy will became more healthier, And holding for long term basis is just for richman since they can generate more funds for theirselves and can just freeze their bitcoin wealth for long time, and low holders cannot do that so I advice that it's better to use the half and let the other half circulate to earn more bitcoins, and that could make the low holders earn more bits to became big holders on future.
Futures impact in bitcoin? If you buy today and just hold it for a year i think your future will become a better future, i know bitcoin will be increase more than a year so its better to hold now.
In order to know what are the impacts of Futures trading on Bitcoin you have to first know how it actually works. You can learn about it on youtube. Fututres trading means trading on the future price of any asset. So the people will be betting on the future price of BTC.
The impact of Futures can be both positive and negative on Bitcoin depending on the trend that follows on the futures trading. If the people are betting against the price fall then the price might actually fall and the same could happen in opposite direction. Seeing the futures value people could tend to buy/sell BTC according to the price.
The impact of Futures can be both positive and negative on Bitcoin depending on the trend that follows on the futures trading. If the people are betting against the price fall then the price might actually fall and the same could happen in opposite direction. Seeing the futures value people could tend to buy/sell BTC according to the price.
IMHO not much. The futures is just like gambling for adults. You are betting price of BTC will increase or decrease. If you get it right you make money, if not, you lose money.
To understand how futures affect bitcoin price, you have to read basic information about futures contract:
- As defined by the CME CF Bitcoin Reference Rate (BRR), Bitcoin future will have 5 BTC as contract unit.
- Unlike Bitcoin exchanges, Bitcoin future will have a defined trading window and circuit filters.
- CME Bitcoin future brings the option to short Bitcoin.
https://seekingalpha.com/article/4128569-5-things-aware-cme-bitcoin-futures
In general; bitcoin futures has nothing to do with bitcoin as the contract settled in dollars and there is no any bitcoin involved, contract holders simply bet on bitcoin price.
But, bitcoin futures bring some advantages as many investors may be interested to buy bitcoin to slightly affect the price in order to win their contract or vice versa. On the other hand, bitcoin seems to gain more attention and reliance from big trading group which intrigue other companies to learn about bitcoin.
- As defined by the CME CF Bitcoin Reference Rate (BRR), Bitcoin future will have 5 BTC as contract unit.
- Unlike Bitcoin exchanges, Bitcoin future will have a defined trading window and circuit filters.
- CME Bitcoin future brings the option to short Bitcoin.
https://seekingalpha.com/article/4128569-5-things-aware-cme-bitcoin-futures
In general; bitcoin futures has nothing to do with bitcoin as the contract settled in dollars and there is no any bitcoin involved, contract holders simply bet on bitcoin price.
But, bitcoin futures bring some advantages as many investors may be interested to buy bitcoin to slightly affect the price in order to win their contract or vice versa. On the other hand, bitcoin seems to gain more attention and reliance from big trading group which intrigue other companies to learn about bitcoin.
I had a very strong theory about the impact of the futures market openning on the Bitcoin's price.
I believe that it has a positive impact on the market as it adds a massive amount of liquidity.
I can't conclude if it is going to affect the price positively or nagatively , but I do believe that it is a totally game changer.
I believe that it has a positive impact on the market as it adds a massive amount of liquidity.
I can't conclude if it is going to affect the price positively or nagatively , but I do believe that it is a totally game changer.
I don't fully understand the Futures market.
How could futures impact bitcoin and its price?
How could futures impact bitcoin and its price?
That what makes bitcoin very unpredictable, considering its volatile price and decentralized nature makes it very hard to determine the final price at the future. Considering that bitcoin is the hot-topic at the world currently due to skyrocketing of its price, no one really knows what will the future may bring. Big investing companies and investors are stating that bitcoin may be the biggest bubble in the history of the internet as it may soon pop, but others sees it as an opportunity to invest whether for short or long-term due to its high-risk, high-reward system.
I agree that it is very difficult nowadays to understand the future price of bitcoin but you must focus on investing first as tomorrow might be the unpredictable. Like what others say, expect the unexpected when investing into bitcoin.
I don't fully understand the Futures market.
How could futures impact bitcoin and its price?
This derivatives is only to be paid in cash and it'll affect the price is institutional buyers would love to influence the price on their own, and this could be a big deal later on.How could futures impact bitcoin and its price?
Wrong. To influence the price of BTC, the institutional traders, not just buyers because they also sell, would have to buy real BTC. This is counterproductive if they also trade BTC futures. The futures market is maybe only good as a hedge to lessen risk for institutional investors who already hold BTC.
What do you mean by real BTC? there is no fake BITCOIN, lol, only real ones exist. The market of the cryptocurrencies and the market that we have in the real world is going to adopt bitcoin for sure in the near future, once they have realized what bitcoin really could do and what it could help them to make this society develop into something better, bitcoin is the future.
It's just way to loos your money if BTC will fall down
Well lets give you a short information.
Through futures the market the CME will sell 5 bitcoins to individuals or authorities and Everything will be dealt in cash now... If they are gonna sell bitcoins then they should buy bitcoins ... Right ? Fair enough.. and when they will buy bitcoins then ... The cost per bitcoins will increase due to high demand and the limited supply... Thus we can see an incredible increase in the price of bitcoins and the futures will start trading from 18 December thus you can expect the peak at 20 - 21 because those who have already set their eyes on this will for sure buy before that... Well now...
The bad news is..that CME could easily regulate the price of bitcoins and if one day they decided to ditch the bitcoins market then ! There is nothing that we would be able to do...and the price will fall down and investors will run away..
Through futures the market the CME will sell 5 bitcoins to individuals or authorities and Everything will be dealt in cash now... If they are gonna sell bitcoins then they should buy bitcoins ... Right ? Fair enough.. and when they will buy bitcoins then ... The cost per bitcoins will increase due to high demand and the limited supply... Thus we can see an incredible increase in the price of bitcoins and the futures will start trading from 18 December thus you can expect the peak at 20 - 21 because those who have already set their eyes on this will for sure buy before that... Well now...
The bad news is..that CME could easily regulate the price of bitcoins and if one day they decided to ditch the bitcoins market then ! There is nothing that we would be able to do...and the price will fall down and investors will run away..
There would be a dual market, futures and Bitcoin market, might be interdependent or independent. Cash-settled Bitcoin futures would allow Bitcoin skeptics/institutional investors to bet against Bitcoin without even buying it or there is a possibility that these investors will want to suppress the price so they can buy Bitcoin at a discount, either way this would lead to a new price discovery mechanism.
Just read an article on, will the futures market do to Bitcoin what it did to gold?
https://medium.com/swlh/will-the-futures-market-do-to-bitcoin-what-it-did-to-gold-b7d35704641
Just read an article on, will the futures market do to Bitcoin what it did to gold?
Quote
1: The velocity of information is orders of magnitude faster — I doubt most market participants in 1975 even knew that gold futures were a thing.
2: The Demand to hold Bitcoin is one of the highest of any assets ever — Bitcoiners have learned to buy the dip and hodl.
3: Bitcoin has more competitors than gold.
2: The Demand to hold Bitcoin is one of the highest of any assets ever — Bitcoiners have learned to buy the dip and hodl.
3: Bitcoin has more competitors than gold.
https://medium.com/swlh/will-the-futures-market-do-to-bitcoin-what-it-did-to-gold-b7d35704641
Futures trading is just betting on the price of something at some point in the future.
In that sense it is no different to gambling. I expect there will be more volatility when these markets come online. All i can say is "pity the fool that bets against a deflationary currency using an inflationary one". The people going into this market expecting it play by the same rules as the existing financial markets are going to be the ones who get burnt the most.
In that sense it is no different to gambling. I expect there will be more volatility when these markets come online. All i can say is "pity the fool that bets against a deflationary currency using an inflationary one". The people going into this market expecting it play by the same rules as the existing financial markets are going to be the ones who get burnt the most.
For America's bitcoin futures business this month, I think it will enlarge the volatility of bitcoin, and it will probably go up and down more vigorously. I think this is unfavorable for the development of the encrypted currency. We should let the community grow slowly, and now we don't need the financial instruments.
As far as i know in futures cash settled so basically this market is people betting each other in USD on what will happen to the price of Bitcoin. No Bitcoin is being moved or delivered here. For each futures trade there is a counterparty betting USD, not BTC. They measure the price of BTC exchanges and go off that for the market.
I think this is something similar to the stock market, where there are analysts and technical people who serve as an advisory team helping to buy and sell taking certain amount as charge or commission for the work done.
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