I have a very tiny amount of bitcoin myself and researched whether or not to enter the market with much more capital before the end of the year, but this discovery makes me very reluctant due to earlier experience with wall street. A small investor should not underestimate the psychological warfare that this institution is capable of.
I have to admit that I don't completely understand the interaction between futures and spot markets. A veteran trader that I follow mentioned that since CME and other regulated futures will be cash-settled, that it would be difficult for institutional players to manipulate the market. I'd love for someone to shed some light on why that may (or may not) be true.
Bitcoin is about to be usurped by very powerful entities with a long history of global wealth management, and the bitcoin community is primed for manipulation according to simple psychological principles that no amount of sophisticated tech can protect you from. I don't have a solution to this dilemma yet but I will study it and I think real discussion and awareness is appropriate.
For those long term investors who buy using dollar averaging this does not apply, however my personal view of bitcoin only apply to medium term, long term it is likely that something with great utility to society will replace fiat within the next 5 to 10 years.
For those long term investors who buy using dollar averaging this does not apply, however my personal view of bitcoin only apply to medium term, long term it is likely that something with great utility to society will replace fiat within the next 5 to 10 years.
What makes you so sure that the spot markets will follow US futures markets? Why not the other way around? I tend to agree that Wall Street and institutional players can add painful volatility, running stops and margin calls on smaller traders easily. But long term, the circulating supply of BTC is too limited to suppress for long.
It's entirely plausible that price will increase aswell as decrease with introduction of futures, but the question at hand is what people like Duffy represent from an ideological point of view, why is he here now? who came up with that brilliant idea? and why is he a voice let alone power to influence the course of this important social initiative. The community is wide open and without organized defenses to be reigned in by old world people who wants futures, when you didn't request it.
Talking heads like Duffy - with actual power to influence will crop up like weeds on a lawn if they aren't mowed down regularly, it's as ancient as Rome and as new as the present where we are witnessing it unfold in real time, and it never stops until you make it stop by implementing necessary and time tested steps to keep people like him in check.
No need to antagonize this particular person or this particular new wall street initiative, but who voted for it? I didn't.
