Author

Topic: How futures on bitcoin will work? (Read 605 times)

full member
Activity: 263
Merit: 100
June 12, 2018, 11:54:48 AM
#38
In some part of this idea you are, but i think it always will be futures buyers,people want to try something new. maybe in long future it can be.
hero member
Activity: 2744
Merit: 541
Campaign Management?"Hhampuz" is the Man
June 12, 2018, 11:28:00 AM
#37
HI ALL,

As everyone knows the futures on bitcoin will be available soon. CME Group plans to launch them in 2017 Q4.
They state the settlement will be in dollars. So futures buyers does not have to deal with bitcoins. That's a bit strange to me. Who will deal with bitcoins than?

Investor buys 1 contract. It is 5 bitcoins. After a certain time if the price (calculated from several exchanges) goes up.
The buyer will receive profit. But who will pay?

As i understand the futures sellers will pay that profit. But they have to get this profit from selling bitcoins at a higher price.
So futures sellers will have to REALLY buy bitcoins. Not futures buyers.

Am i correct? This subject seems unclear to me.
So this is one of the reason why the pumping happened last Q4 2017?i guess this is what we must be thankful lol

Actually i dont have knowledge about what is your pointing here,but all i know that bitcoins future relies on what we users do to support this coin and the blockchain to continuously provide us income and profiteering
full member
Activity: 392
Merit: 100
ADABsSsSsSsSSSsS
June 12, 2018, 10:52:43 AM
#36
It is hard to predict how much money people will be willing to pay to hold bitcoins in the future.

The existence of other digital currencies could limit the price of bitcoin,

Over the past two years, there have been more than 1, 000 new digital currencies on the market, and they have actually limited the rise of bitcoin.

Ico's regulations limit the issuance of new digital cryptographic currencies! BTC will go up again.

No matter how big the price of bitcoins, people will still continue to invest even just a small amount, the price of bitcoins will still grow in the future due to the demand in the country, that's the reason why we should invest today while it was cheap.
sr. member
Activity: 702
Merit: 255
June 12, 2018, 10:45:08 AM
#35
The worst thing about bitcoin futures is that they can negatively affect the price. For example, deliberately reducing the price at the time of closing futures.
Tomorrow the futures on the CBOE exchange close and we see how the price of bitcoin will be dumped down.
newbie
Activity: 126
Merit: 0
June 10, 2018, 07:05:17 PM
#34
The future will play a huge role in bitcoin because I think bitcoin will increasingly be used to be a place of payment and even legend by governments that receive bitcoin in the country.
newbie
Activity: 210
Merit: 0
June 10, 2018, 06:51:46 PM
#33
Bitcoin is a virtual virtual currency.The bank itself or any other organization can not save itself the price itself to save the bitcoin in the future.Bitcoin will behave like gold in the future.In the future, bitcoin will be able to invest in arbitrary time by reducing it's value,just like gold.It is possible to earn a lot of money by selling bitcoin to increase future prices.In the future bitcoin will work this away.
newbie
Activity: 29
Merit: 0
May 22, 2018, 12:11:03 PM
#32
Futures are not just for physical assets, they can be traded on financial assets as well. With Bitcoin Futures, contracts will be based on the price of Bitcoin & speculators can bet on what they believe the price of Bitcoin will be in future.
Thus as a result Bitcoin itself remains unregulated & Bitcoin futures can be traded on regulated exchanges. It's good for those who are concerned about the risks elated to the industry's lack of regulation. Smiley
newbie
Activity: 70
Merit: 0
May 22, 2018, 03:31:48 AM
#31
Bitcoin futures works as a primary demand to community, and it works as a basis to eliminate economic problem of the world. And by the use of bitcoin our economic status all over the world would stay smooth and increase economic income because of cryptocurrency business.

The future of bitcoin will continue to grow among the people who use it a lot. The development of bitcoin from year to year is very significant and very expensive. Automatically we can all benefit from this. It is possible that bitcoin worldwide will use bitcoin as a future transaction, so we can transact between countries. The future of Bitcoin will work, because it currently dominates and continues to be a trend because of its rapid price movements. May the future of bitcoin be brighter and will function in the world economy.
newbie
Activity: 31
Merit: 0
May 01, 2018, 08:11:45 AM
#30
For example information for sending currency dollars to other countries, the fee charged can be up to USD 300 + + depending on how much the nominal transaction and other costs. The beneficiary, of course, has the infrastructure to run the transaction, in this case the bank.
While using Bitcoin (and other cryptocurrency), the cost can be eliminated (yes because there is not one regulating and authorized party who can then ask for transaction fee). In this way, the future of bitcoin is brilliant because many people dream of the condition.
sr. member
Activity: 994
Merit: 252
April 13, 2018, 01:02:10 PM
#29
I hope bitcoin will work upcoming future.it will stay all time.now bitcoin price value is low but really It come back soon.I wish in future,more people for transaction  only use bitcoin.also I hope bitcoin create success in the world.
The future of Bitcoin will be a future full of prosperity, the technology will improve with the passage of time and this will increase the number advantages you take out of you coins. As long as there is demand in the market, the future of the coin in the market will be a promising one. The arrival of BTM in the market in Europe was a new thing which was accepted by 15 countries in 5 years.
member
Activity: 406
Merit: 10
April 12, 2018, 02:34:59 PM
#28
I hope bitcoin will work upcoming future.it will stay all time.now bitcoin price value is low but really It come back soon.I wish in future,more people for transaction  only use bitcoin.also I hope bitcoin create success in the world.
sr. member
Activity: 994
Merit: 256
April 12, 2018, 01:29:07 PM
#27
I think they will stand for a new innovation which will drag in more investors and will enhance their capability. Let's just be positive for btc growth.
The future on Bitcoin will be a very changed future. It will work in a way not witnessed by the previous generations. The technological revolution in 1990s in Europe multiplies the output several times and the threat of scarcity of food and other necessities disappeared. In the same way, this technology promises a revolution. Many people still disagree because they are in suspense due to certain factors like the volatility or the legal or illegal status. Despite all these issues, the coin will initiate a revolution.
jr. member
Activity: 98
Merit: 1
Unibright Token Launch - 10th April 2018
April 10, 2018, 11:17:41 PM
#26
It is hard to predict how much money people will be willing to pay to hold bitcoins in the future.

The existence of other digital currencies could limit the price of bitcoin,

Over the past two years, there have been more than 1, 000 new digital currencies on the market, and they have actually limited the rise of bitcoin.

Ico's regulations limit the issuance of new digital cryptographic currencies! BTC will go up again.
member
Activity: 406
Merit: 19
April 10, 2018, 10:55:59 PM
#25
I feel the same way for me CME Group is only monopolistic, buying at market price then selling it at a premium price, that way the CME Group kills the interest of bitcoin users and impacts on the declining bitcoin price.
member
Activity: 840
Merit: 10
April 10, 2018, 08:44:50 PM
#24
HI ALL,

As everyone knows the futures on bitcoin will be available soon. CME Group plans to launch them in 2017 Q4.
They state the settlement will be in dollars. So futures buyers does not have to deal with bitcoins. That's a bit strange to me. Who will deal with bitcoins than?

Investor buys 1 contract. It is 5 bitcoins. After a certain time if the price (calculated from several exchanges) goes up.
The buyer will receive profit. But who will pay?

As i understand the futures sellers will pay that profit. But they have to get this profit from selling bitcoins at a higher price.
So futures sellers will have to REALLY buy bitcoins. Not futures buyers.

Am i correct? This subject seems unclear to me.

From my perspective, futures is like gambling. We put order that bitcoin will gone to price xxx and some body take that bet. I am believe that futures is bad for bitcoin because people or institution with capital only can win and thats affecting on bitcoin price
member
Activity: 378
Merit: 19
Xch4nge.com
April 10, 2018, 08:24:45 PM
#23
I guess the payment of almost all people will be cashless and cardless only needed the internet to process the transactions of bitcoin payment. there will be no more hassle on paying such as debt and taxes and sending money abroad too.
and the process may run forever and indeed there are already some countries have started using crypto for payment,

They are Japan and Dutch.

but for the whole country may not be able to

And this has been proven by the presence of several restrictions imposed by European, American and Asian countries.
newbie
Activity: 123
Merit: 0
April 10, 2018, 02:07:29 PM
#22
Bitcoin futures works as a primary demand to community, and it works as a basis to eliminate economic problem of the world. And by the use of bitcoin our economic status all over the world would stay smooth and increase economic income because of cryptocurrency business.
sr. member
Activity: 532
Merit: 250
April 10, 2018, 01:10:15 PM
#21
I guess the payment of almost all people will be cashless and cardless only needed the internet to process the transactions of bitcoin payment. there will be no more hassle on paying such as debt and taxes and sending money abroad too.
in that case it still needs long-term, crypto still requires a traditional bank, and the process may run forever and indeed there are already some countries have started using crypto for payment, but for the whole country may not be able to
newbie
Activity: 84
Merit: 0
April 10, 2018, 12:02:41 PM
#20
Since then, both have introduced futures on bitcoin, he does not cease to fall. Because now it is possible to short.
sr. member
Activity: 616
Merit: 250
April 10, 2018, 11:57:46 AM
#19
I guess the payment of almost all people will be cashless and cardless only needed the internet to process the transactions of bitcoin payment. there will be no more hassle on paying such as debt and taxes and sending money abroad too.
sr. member
Activity: 2618
Merit: 439
April 10, 2018, 11:03:44 AM
#18
Bitcoin will work in the coming future as a hope of all nations. Bitcoin will be the best tool to all the world success. Because bitcoin will positively grow this month.
I'm not sure for 'future as a hope of all nations', as the majority of countries refuse and ban bitcoin outstanding in the country. They don't need bitcoin, although they need bitcoin they will make their own digital money. And strictly forbid people who use bitcoin, for move to national digital money. With the digital money they made, it's easy to manage all transactions and as a means of payment. There is no advantage for the government to accept bitcoin, because government can't regulate and control all transactions, with my conclusion they don't get a profit.

They can get profit if they would have to put taxes. However, I agree with you that they are against it because government can't control crypto because its decentralize. And its really so disruptive that they are afraid that it can change the landscape of their economics.

That's our hope for bitcoin grow up in this month, but in fact the bitcoin price is still under $ 10,000. And most likely will continue to decline to await google decision that will ban bitcoin in June. Anything will happen in crypocurrency, and sooner or later the price will go back up, we'll wait.
Just really sad to see the price was not the same as December because we are really struggling and even have a hard time getting to $10K. And with all the regulations and anti-bitcoin sentiments going around we can only hope that it will get to 5 digits again. So we will have to wait and see how it goes in the next 6 months.
legendary
Activity: 2674
Merit: 1048
April 10, 2018, 10:57:12 AM
#17
Bitcoin will work in the coming future as a hope of all nations. Bitcoin will be the best tool to all the world success. Because bitcoin will positively grow this month.

I'm not sure for 'future as a hope of all nations', as the majority of countries refuse and ban bitcoin outstanding in the country. They don't need bitcoin, although they need bitcoin they will make their own digital money. And strictly forbid people who use bitcoin, for move to national digital money. With the digital money they made, it's easy to manage all transactions and as a means of payment. There is no advantage for the government to accept bitcoin, because government can't regulate and control all transactions, with my conclusion they don't get a profit.

That's our hope for bitcoin grow up in this month, but in fact the bitcoin price is still under $ 10,000. And most likely will continue to decline to await google decision that will ban bitcoin in June. Anything will happen in crypocurrency, and sooner or later the price will go back up, we'll wait.
jr. member
Activity: 280
Merit: 1
April 10, 2018, 10:11:09 AM
#16
I think they will stand for a new innovation which will drag in more investors and will enhance their capability. Let's just be positive for btc growth.
member
Activity: 378
Merit: 55
Be Good to me!
April 10, 2018, 09:58:18 AM
#15
HI ALL,

As everyone knows the futures on bitcoin will be available soon. CME Group plans to launch them in 2017 Q4.
They state the settlement will be in dollars. So futures buyers does not have to deal with bitcoins. That's a bit strange to me. Who will deal with bitcoins than?

Investor buys 1 contract. It is 5 bitcoins. After a certain time if the price (calculated from several exchanges) goes up.
The buyer will receive profit. But who will pay?

As i understand the futures sellers will pay that profit. But they have to get this profit from selling bitcoins at a higher price.
So futures sellers will have to REALLY buy bitcoins. Not futures buyers.

Am i correct? This subject seems unclear to me.

Bitcoin will work in the coming future as a hope of all nations. Bitcoin will be the best tool to all the world success. Because bitcoin will positively grow this month.
jr. member
Activity: 98
Merit: 2
April 10, 2018, 09:52:14 AM
#14
"As everyone knows the futures on bitcoin will be available soon. CME Group plans to launch them in 2017 Q4.
They state the settlement will be in dollars. So futures buyers does not have to deal with bitcoins. That's a bit strange to me. Who will deal with bitcoins than?" One quoted this one, but for me what do we call ourselves? Maybe the start will be the bitcoins, but in the mere fyture it will all be converted to dollars.
member
Activity: 128
Merit: 10
March 09, 2018, 02:54:14 AM
#13
HI ALL,

As everyone knows the futures on bitcoin will be available soon. CME Group plans to launch them in 2017 Q4.
They state the settlement will be in dollars. So futures buyers does not have to deal with bitcoins. That's a bit strange to me. Who will deal with bitcoins than?

Investor buys 1 contract. It is 5 bitcoins. After a certain time if the price (calculated from several exchanges) goes up.
The buyer will receive profit. But who will pay?

As i understand the futures sellers will pay that profit. But they have to get this profit from selling bitcoins at a higher price.
So futures sellers will have to REALLY buy bitcoins. Not futures buyers.

Am i correct? This subject seems unclear to me.
The futures contract just like you are predicting the future price of the bitcoin let's say the A predicted about the bitcoin will reach $12k in the future. And another person like B predicted about the bitcoin will be around $13k and finally, the price of bitcoin stopped around $12,5k That means the predicted by A becomes the true value of bitcoin. So there is $500 gap with the bitcoin. And it can be considered as the profit for A.
And B is a looser caused by the price of bitcoin doesn't surpass its prediction.

For me who know the futures on bitcoin predicting the future price of the bitcoin. Imagine let's say the predicted about the bitcoin will reach $12k in the future.So that the predicted by becomes the true value of bitcoin.So there is $500 gap with bitcoin.And it can be considered as the profit for A. And B is a looser caused by the price of bitcoin  doesn't surpass its prediction.
member
Activity: 140
Merit: 10
March 08, 2018, 11:10:08 PM
#12
HI ALL,

As everyone knows the futures on bitcoin will be available soon. CME Group plans to launch them in 2017 Q4.
They state the settlement will be in dollars. So futures buyers does not have to deal with bitcoins. That's a bit strange to me. Who will deal with bitcoins than?

Investor buys 1 contract. It is 5 bitcoins. After a certain time if the price (calculated from several exchanges) goes up.
The buyer will receive profit. But who will pay?

As i understand the futures sellers will pay that profit. But they have to get this profit from selling bitcoins at a higher price.
So futures sellers will have to REALLY buy bitcoins. Not futures buyers.

Am i correct? This subject seems unclear to me.
The traders can speculate on the coin without actually having to touch it traders will have to put some money on the table for their bets Since btc is volatile .Its required to have at least 44%of the btc settlement price
full member
Activity: 336
Merit: 100
December 07, 2017, 06:22:29 PM
#11
you all talking about the basic concept which i understand
but i would like to know how this will be implemented technically

These are being implemented as CFD (contract for difference) futures.  As far as I can understand, they do not represent any actual holding of Bitcoin, the exchanges do not possess any "reserve" of Bitcoin, and there is no option (at this time) to "take delivery" of a settled contract in Bitcoin.  So it's basically betting on the price of Bitcoin at each contract's strike date.

I am more interested in how people in the community feel that a futures contract that is wholly disconnected from the underlying asset (BTC) will impact the price of BTC.  I posted a similar thread about that particular aspect.

I guess we'll know starting next week, but it's looking more to me as a way that they can sell clients on "paper Bitcoin" than something that could actually manipulate the real BTC price.  At least for now while they're totally disconnected from actual BTC.


This is the key bit of information, no BTC has to ever be used in the transaction whatsoever, it is basically just betting on the price of bitcoin. I also do not yet fully understand how it will influence the price, a lot of me thinks that it may temper it but I can't quite put my thoughts together enough to really understand myself why that's my opinion let alone express it. Maybe just one of those things my brain is telling me due to my economic background but can't figure out exactly why.
sr. member
Activity: 335
Merit: 250
December 07, 2017, 03:15:40 PM
#10
>>That's why,a lo of analysts fear of a possible crash in future just like what happened in tulips during seventeenth century which were sold in contracts.

Well here IMHO the most important thing is technical side of bitcoin ecosystem. If it will became more and more attractive to the simple users then bitcoin price will grow and stabilize at a very high value.
Simple logic. The currency must be more or less stable, but it can be stable only at a very high price.
I guess it is possible to calculate that price.
So the key thing is will bitcoin be used more and more as a currency.
hero member
Activity: 686
Merit: 500
December 06, 2017, 07:39:24 PM
#9
you all talking about the basic concept which i understand
but i would like to know how this will be implemented technically

These are being implemented as CFD (contract for difference) futures.  As far as I can understand, they do not represent any actual holding of Bitcoin, the exchanges do not possess any "reserve" of Bitcoin, and there is no option (at this time) to "take delivery" of a settled contract in Bitcoin.  So it's basically betting on the price of Bitcoin at each contract's strike date.

I am more interested in how people in the community feel that a futures contract that is wholly disconnected from the underlying asset (BTC) will impact the price of BTC.  I posted a similar thread about that particular aspect.

I guess we'll know starting next week, but it's looking more to me as a way that they can sell clients on "paper Bitcoin" than something that could actually manipulate the real BTC price.  At least for now while they're totally disconnected from actual BTC.

Speculators would get a big place to play.So,bitcoin price would be manipulated a lot.That's why,a lo of analysts fear of a possible crash in future just like what happened in tulips during seventeenth century which were sold in contracts.
sr. member
Activity: 335
Merit: 250
December 06, 2017, 06:25:16 PM
#8
>>I am more interested in how people in the community feel that a futures contract that is wholly disconnected from the underlying asset (BTC) will impact the price of BTC.

I am interested in exactly the same thing

>>it's looking more to me as a way that they can sell clients on "paper Bitcoin" than something that could actually manipulate the real BTC price.

agree

>>No one has to buy the bitcoins.

That's scares a bit Smiley
sr. member
Activity: 476
Merit: 259
December 05, 2017, 05:56:21 PM
#7
but who will buy bitcoins actually?

No one has to buy the bitcoins.

Think about it like that, the CME group that enables bitcoin futures, actually brings you the option to bet whether bitcoin will go high or low from the current price.
As it enables high leverage, it helps you to trade at high volume even if you own a small collateral.

You bet against other peoples, you can choose to sell/buy the future contract, and in order to sell the contract you need to have another person to buy it from you, and also the opposite.

copper member
Activity: 98
Merit: 12
BTRIC: Innovate. Institute. Labs.
December 05, 2017, 05:07:56 PM
#6
you all talking about the basic concept which i understand
but i would like to know how this will be implemented technically

These are being implemented as CFD (contract for difference) futures.  As far as I can understand, they do not represent any actual holding of Bitcoin, the exchanges do not possess any "reserve" of Bitcoin, and there is no option (at this time) to "take delivery" of a settled contract in Bitcoin.  So it's basically betting on the price of Bitcoin at each contract's strike date.

I am more interested in how people in the community feel that a futures contract that is wholly disconnected from the underlying asset (BTC) will impact the price of BTC.  I posted a similar thread about that particular aspect.

I guess we'll know starting next week, but it's looking more to me as a way that they can sell clients on "paper Bitcoin" than something that could actually manipulate the real BTC price.  At least for now while they're totally disconnected from actual BTC.
sr. member
Activity: 335
Merit: 250
December 05, 2017, 04:44:47 PM
#5
you all talking about the basic concept which i understand
but i would like to know how this will be implemented technically
sr. member
Activity: 644
Merit: 250
December 01, 2017, 06:22:51 PM
#4
HI ALL,

As everyone knows the futures on bitcoin will be available soon. CME Group plans to launch them in 2017 Q4.
They state the settlement will be in dollars. So futures buyers does not have to deal with bitcoins. That's a bit strange to me. Who will deal with bitcoins than?

Investor buys 1 contract. It is 5 bitcoins. After a certain time if the price (calculated from several exchanges) goes up.
The buyer will receive profit. But who will pay?

As i understand the futures sellers will pay that profit. But they have to get this profit from selling bitcoins at a higher price.
So futures sellers will have to REALLY buy bitcoins. Not futures buyers.

Am i correct? This subject seems unclear to me.
The futures contract just like you are predicting the future price of the bitcoin let's say the A predicted about the bitcoin will reach $12k in the future. And another person like B predicted about the bitcoin will be around $13k and finally, the price of bitcoin stopped around $12,5k That means the predicted by A becomes the true value of bitcoin. So there is $500 gap with the bitcoin. And it can be considered as the profit for A.
And B is a looser caused by the price of bitcoin doesn't surpass its prediction.
sr. member
Activity: 335
Merit: 250
December 01, 2017, 06:17:43 PM
#3
but who will buy bitcoins actually?
hero member
Activity: 980
Merit: 507
November 30, 2017, 04:21:34 PM
#2
HI ALL,

As everyone knows the futures on bitcoin will be available soon. CME Group plans to launch them in 2017 Q4.
They state the settlement will be in dollars. So futures buyers does not have to deal with bitcoins. That's a bit strange to me. Who will deal with bitcoins than?

Investor buys 1 contract. It is 5 bitcoins. After a certain time if the price (calculated from several exchanges) goes up.
The buyer will receive profit. But who will pay?

As i understand the futures sellers will pay that profit. But they have to get this profit from selling bitcoins at a higher price.
So futures sellers will have to REALLY buy bitcoins. Not futures buyers.

Am i correct? This subject seems unclear to me.
Not only CME group, even NASDAQ(competitor of CME group)  has decided to launch bitcoin futures before  the first half of next year. The markets have a buyer and seller almost all the time, if the price is almost the same that others are paying for, if the price is unreasonable no one will buy it. Buyers will buy and sellers will sell no matter what the price is because that's the basic functionality of markets.
sr. member
Activity: 335
Merit: 250
November 30, 2017, 04:02:55 PM
#1
HI ALL,

As everyone knows the futures on bitcoin will be available soon. CME Group plans to launch them in 2017 Q4.
They state the settlement will be in dollars. So futures buyers does not have to deal with bitcoins. That's a bit strange to me. Who will deal with bitcoins than?

Investor buys 1 contract. It is 5 bitcoins. After a certain time if the price (calculated from several exchanges) goes up.
The buyer will receive profit. But who will pay?

As i understand the futures sellers will pay that profit. But they have to get this profit from selling bitcoins at a higher price.
So futures sellers will have to REALLY buy bitcoins. Not futures buyers.

Am i correct? This subject seems unclear to me.
Jump to: