Reuters: Bitcoin gets boost as U.S. watchdog (CFTC) approves first swap - page 2.

FUR11

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FURring bitcoin up since 1762

Quote from: adamstgBit on September 12, 2014, 05:25:12 PM

Quote from: BitChick on September 12, 2014, 05:23:40 PM

Forgive me if this is a stupid question, but shouldn't this help the approval process for the Winklevoss ETF? I would think this is another step towards showing how this is a legitimate investment.

this will do nothing to speed up the approval

but the FUD about it not being approved at all should stop.

What are the latest news on the COIN ETF, anyways? There have been rumors that it is stalling or may get cancelled completely!? Is this true or is this just plain and simple FUD, really?

adamstgBit

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Quote from: BitChick on September 12, 2014, 05:23:40 PM

Forgive me if this is a stupid question, but shouldn't this help the approval process for the Winklevoss ETF? I would think this is another step towards showing how this is a legitimate investment.

this will do nothing to speed up the approval

but the FUD about it not being approved at all should stop.

BitChick

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Forgive me if this is a stupid question, but shouldn't this help the approval process for the Winklevoss ETF? I would think this is another step towards showing how this is a legitimate investment.

FUR11

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FURring bitcoin up since 1762

Quote from: jbrnt on September 12, 2014, 03:34:16 PM

So this swap is an agreement to sell bitcoin at an agreed rate in the future, right? Does it mean merchants who accepts bitcoin do not need to sell the bitcoin they received on the exchange immediately?

That actually sounds like another very risky investment vehicle or tool to me! Aren't swaps basically used for leveraged or margin trading? I only see all those swaps over on Bitfinex, where people lend their money to others and they get wiped out afterwards, lol!

Gleb Gamow

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Quote from: blumangroup on September 12, 2014, 05:09:41 PM

Quote from: jbrnt on September 12, 2014, 03:34:16 PM

So this swap is an agreement to sell bitcoin at an agreed rate in the future, right? Does it mean merchants who accepts bitcoin do not need to sell the bitcoin they received on the exchange immediately?

Technically this is true. However someone selling a futures contract to sell something in the future generally has the same effect on the "spot" market as an outright sale would have.

This is exactly what I once proposed, dedicating a thread to such, but was shut down (not the thread) via a myriad of posts espousing as to why my idea would never come to fruition.

My electronics teacher in high school ('76) told me that there would never be a TV watch due not being able to manufacture a cathode ray tube small enough to create such a thing after I asked a "what if" question. He was somebody I looked up to at the time. Image the possibilities if he would have said something akin to, "That's a great idea, Bruno. Why don't you try to build something like that, but probably not based on a CAT."

Look at my sig. Does that also look like a crazy idea?

~Bruno Kucinskas

blumangroup

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'Slow and steady wins the race'

Quote from: jbrnt on September 12, 2014, 03:34:16 PM

So this swap is an agreement to sell bitcoin at an agreed rate in the future, right? Does it mean merchants who accepts bitcoin do not need to sell the bitcoin they received on the exchange immediately?

Technically this is true. However someone selling a futures contract to sell something in the future generally has the same effect on the "spot" market as an outright sale would have.

QuestionAuthority

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You lead and I'll watch you walk away.

Quote from: Verse on September 12, 2014, 04:13:07 PM

Quote from: jbrnt on September 12, 2014, 03:34:16 PM

So this swap is an agreement to sell bitcoin at an agreed rate in the future, right? Does it mean merchants who accepts bitcoin do not need to sell the bitcoin they received on the exchange immediately?

Yes. This is a crucial step towards stabilizing the exchange market and turning Bitcoin into a viable currency instead of an investment currency. Additionally, if these swaps are heavily used, they could create significant upward price pressure for BTC by forcing the market into a longer position and therefore able to price in externalities like deflation, and the demand increase for BTC at higher valuations (wire transfers for large corporations which exchanges cannot currently handle due to the limited market.)

Keep your eye on these swaps, they could serve as a tipping point.

You can get more information here, instead of having that kid posting handicap signs call you an idiot: https://en.wikipedia.org/wiki/Swap_%28finance%29

Or a simple explanation here: http://www.investopedia.com/articles/optioninvestor/07/swaps.asp

tl;dr: Bitcoin's real value is in the future, not the present. Swaps = Long positions = Long term upward price pressure = Good.

Disclaimer: Please note that I am not necessarily saying that the current $470 price is 'good' by extension, Bitcoin could (still) be overvalued and a market correction could suppress any short term swap benefits.

That's all correct. Bitcoin could end up with a decreased USD exchange rate initially but the long term growth would be impressive and steady. We could look forward to real adoption by normal people not just the fringe element that uses it inbetween their posting of handicapped signs.

Verse

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Quote from: jbrnt on September 12, 2014, 03:34:16 PM

So this swap is an agreement to sell bitcoin at an agreed rate in the future, right? Does it mean merchants who accepts bitcoin do not need to sell the bitcoin they received on the exchange immediately?

Yes. This is a crucial step towards stabilizing the exchange market and turning Bitcoin into a viable currency instead of an investment currency. Additionally, if these swaps are heavily used, they could create significant upward price pressure for BTC by forcing the market into a longer position and therefore able to price in externalities like deflation, and the demand increase for BTC at higher valuations (wire transfers for large corporations which exchanges cannot currently handle due to the limited market.)

Keep your eye on these swaps, they could serve as a tipping point.

You can get more information here, instead of having that kid posting handicap signs call you an idiot: https://en.wikipedia.org/wiki/Swap_%28finance%29

Or a simple explanation here: http://www.investopedia.com/articles/optioninvestor/07/swaps.asp

tl;dr: Bitcoin's real value is in the future, not the present. Swaps = Long positions = Long term upward price pressure = Good.

Disclaimer: Please note that I am not necessarily saying that the current $470 price is 'good' by extension, Bitcoin could (still) be overvalued and a market correction could suppress any short term swap benefits.

adamstgBit

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WOOT WOOT

jbrnt

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So this swap is an agreement to sell bitcoin at an agreed rate in the future, right? Does it mean merchants who accepts bitcoin do not need to sell the bitcoin they received on the exchange immediately?

Bitcoinpro

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Quote from: RawDog on September 12, 2014, 03:10:26 PM

Quote from: Bitcoinpro on September 12, 2014, 03:08:05 PM

Quote from: RawDog on September 12, 2014, 03:00:18 PM

Quote from: Bitcoinpro on September 12, 2014, 02:54:19 PM

Quote from: RawDog on September 12, 2014, 02:52:29 PM

Quote from: Bitcoinpro on September 12, 2014, 02:46:41 PM

dosn't really mean anything if it does explain it to me

You are too dumb to understand things like this. However, I'll tell you one thing you can understand - this is fucking huge.

Sure bud just answer the question instead of trying to sound like an ass hat

The answer will be of no use to you. You'll just have to believe that bitcoin swaps are a very important step forward. It basically means, now wall street is actually involved and designing financial products around bitcoin. Never before has that been done.

Look, this stuff is technical. It's not really good for morons. Try a Frisbee.

Translation:

Brain injury association of America certified WORTHLESS

Don't worry about it dude - just put one of these in your car window:

Now your explaing the currency swap exemption properly

RawDog

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Quote from: Bitcoinpro on September 12, 2014, 03:08:05 PM

Quote from: RawDog on September 12, 2014, 03:00:18 PM

Quote from: Bitcoinpro on September 12, 2014, 02:54:19 PM

Quote from: RawDog on September 12, 2014, 02:52:29 PM

Quote from: Bitcoinpro on September 12, 2014, 02:46:41 PM

dosn't really mean anything if it does explain it to me

You are too dumb to understand things like this. However, I'll tell you one thing you can understand - this is fucking huge.

Sure bud just answer the question instead of trying to sound like an ass hat

The answer will be of no use to you. You'll just have to believe that bitcoin swaps are a very important step forward. It basically means, now wall street is actually involved and designing financial products around bitcoin. Never before has that been done.

Look, this stuff is technical. It's not really good for morons. Try a Frisbee.

Translation:

Brain injury association of America certified WORTHLESS

Don't worry about it dude - just put one of these in your car window:

Bitcoinpro

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Activity: 1344

Merit: 1000

Quote from: RawDog on September 12, 2014, 03:00:18 PM

Quote from: Bitcoinpro on September 12, 2014, 02:54:19 PM

Quote from: RawDog on September 12, 2014, 02:52:29 PM

Quote from: Bitcoinpro on September 12, 2014, 02:46:41 PM

dosn't really mean anything if it does explain it to me

You are too dumb to understand things like this. However, I'll tell you one thing you can understand - this is fucking huge.

Sure bud just answer the question instead of trying to sound like an ass hat

The answer will be of no use to you. You'll just have to believe that bitcoin swaps are a very important step forward. It basically means, now wall street is actually involved and designing financial products around bitcoin. Never before has that been done.

Look, this stuff is technical. It's not really good for morons. Try a Frisbee.

Translation:

Brain injury association of America certified WORTHLESS

trabitc

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I didn't understand much about this news but if it's huge, it's nice for me and for bitcoins.

RawDog

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Quote from: Bitcoinpro on September 12, 2014, 02:54:19 PM

Quote from: RawDog on September 12, 2014, 02:52:29 PM

Quote from: Bitcoinpro on September 12, 2014, 02:46:41 PM

dosn't really mean anything if it does explain it to me

You are too dumb to understand things like this. However, I'll tell you one thing you can understand - this is fucking huge.

Sure bud just answer the question instead of trying to sound like an ass hat

The answer will be of no use to you. You'll just have to believe that bitcoin swaps are a very important step forward. It basically means, now wall street is actually involved and designing financial products around bitcoin. Never before has that been done.

Look, this stuff is technical. It's not really good for morons. Try a Frisbee.

Bitcoinpro

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Activity: 1344

Merit: 1000

Quote from: RawDog on September 12, 2014, 02:52:29 PM

Quote from: Bitcoinpro on September 12, 2014, 02:46:41 PM

dosn't really mean anything if it does explain it to me

You are too dumb to understand things like this. However, I'll tell you one thing you can understand - this is fucking huge.

Sure bud just answer the question instead of trying to sound like an ass hat

RawDog

legendary

Activity: 1596

Merit: 1026

Quote from: Bitcoinpro on September 12, 2014, 02:46:41 PM

dosn't really mean anything if it does explain it to me

You are too dumb to understand things like this. However, I'll tell you one thing you can understand - this is fucking huge.

Bitcoinpro

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Activity: 1344

Merit: 1000

Quote from: QuestionAuthority on September 12, 2014, 02:40:01 PM

Wow, this is huge and can help stabilize Bitcoin price once and for all.

What r u talking about

Bitcoinpro

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dosn't really mean anything if it does explain it to me

QuestionAuthority

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Activity: 2156

Merit: 1393

You lead and I'll watch you walk away.

Wow, this is huge and can help stabilize Bitcoin price once and for all.

Quote

The Tera Bitcoin Price Index employs a dynamic algorithm that compiles and filters data on a real-time basis from a number of widely utilized global bitcoin exchanges. In order to be included in the index these exchanges are required to execute and maintain an information sharing agreement with TeraExchange, as required by the CFTC. TeraExchange is the index administrator and calculation agent....."Regulated bitcoin swap trading provides institutional clients with a more efficie a more efficient and confident way to hedge and trade," said Christian Martin, CEO and co-founder. "A robust price index also helps the growing bitcoin trading community to accurately mark-to-market positions while establishing trust and stability in this growing global marketplace."

Topic: Reuters: Bitcoin gets boost as U.S. watchdog (CFTC) approves first swap - page 2. (Read 2886 times)