Bitcoin Futures: Prepare for Madness
I have spent most of the week reading articles about the possible impact of Bitcoin Futures, here is my take on the subject.
First of all, we need to understand that once the CME Group, the CBOE and Nasdaq enter the bitcoin game, all traditional whales are going to be converted into small golden fishes. They will take Bitcoin Trading into a whole new level where institutional entities will enter the space.
There is also a lot of interest from big players for Bitcoin to fail, one could expect that a lot of institutions will put big bucks into shorting Bitcoin. Now, on crypto exchanges, shorting is not that bad, since they need to borrow Bitcoin in order to be able to sell it, there is always a demand for Bitcoin somehow. On the future market anyone can short Bitcoin without having any.
But what worries me the most about Bitcoin being added to the futures market is that it will take away its best feature and the single most solid incentive to buy and hold bitcoin: SCARCITY.
Futures will make Bitcoin´s scarcity irrelevant. With a limited supply and an increase in demand Bitcoin can only go up really, but Bitcoin Futures will allow anyone who wants to buy Bitcoin to go to the futures market and buy a “derivate”, which is an asset that follows the price of Bitcoin but it is not Bitcoin, so when someone goes “long” on the futures market that action will not take Bitcoin out of circulation.
In the same way, people who sell will not really sell Bitcoin, that is because they don’t have any to sell, but that doesn’t matter, they can sell this “derivative” as much as they want and that selling pressure will cause a negative psychological effect that will impact Bitcoin price accross crypto exchanges.
My conclusion: Bitcoin so far has been a peaceful ocean, where everyone involved is a Hodler, a hobbyist, a developers or a philanthropists, these people are into Bitcoin because they believe it can change the world for the better. Now, the introduction of Bitcoin Futures, will bring the real "evil whales", who will short Bitcoin and do everything in their power (and they have a lot of it) to destroy it and profit from its destruction…. WAR is coming.
Source: Battlefield.com
I feel a bitcoin war coming soon as the price rises and much more awareness spreads to bigger businesses . I’m not sure what to expect when they is a limited supply
they will play their game on the futures exchange and the crypto world will remain a rebel to corporations and centralised powers as it always been. i don't think it will change the game that much. i think it may bring more awareness the cryptocurrency world.
Brother, that is the future, the btc is here to stay, and every day the war is closer.
Many are upset because they ran out of their slice, the big bankers will not stop attacking us. In this month there will be a lot of tension in the market, new investors will come to support Bitcoin. Pure heavy artillery. the best we can do is grab the hard btc because after the quiet comes it will be a silent and dangerous war.
Hermano, ya ese es el futuro, el btc llegó para quedarse, y cada día la guerra esta mas reñida.
Muchos están molestos porque se les acabó la macoya, los grandes banqueros no dejaran de atacarnos. en este mes habrá mucha tensión en el mercado, vienen nuevos inversores a apoyar el bitcoin. Pura artillería pesada. lo mejor que podemos hacer es agarrar duro al btc porque después que venga la bonanza sera una guerra mas silenciosa.
I agree with your points @chitty. In fact Bitcoin made some persons madness. BTC current movement very crazy. It's behave really mad. Awesome return investment.
Ok I was totally thinking this was a serius post until I see the final photo ahaha, Love battlefield. But I agree with you it will become a cryptowar BTC can have real issues and people going crazy soon.
This soungs interesting so what do u think will bitcoin will able to hold its position in market????
I dont really know, it could go up a lot and then down or it could just crash!
@chitty,
Friend just after reading your article I actually feel horrible! As you said all big whales in current BTC Ocean will become Gold Fishes when Futures arrives! Yeah those whales will busted everything and say they made a nice profit by using it!
Excellent review about upcoming chaos!
Cheers~
Crypto has always been madness and defiant of all common laws and practices. The experts have been wrong about it at every single step. That you are describing the past times as a peaceful ocean, is quite worrying.
As far as I can tell, the futures are there only for BTC, not for other altcoins. What do you think, will some altcoins (especially Ripple, as it seems to be the least volatile of the bunch until now) become safe havens?
Or would they also be engulfed by the tidal waves caused by evil killer whales?
Bitcoin price tends to impact all other altcoins, if bitcoin crashes all Altcoins will follow..
Expecting a hard and fast law from a tendency is arguably not the wisest position, my friend.
Best of Crypto luck to you!
@chitty - Sir whole world now talking about BTC, it brings killer whales favoritism on BTC & according to your article the future is not good as we thought.... You described the current situation & upcoming problem very well Sir....
+W+ [UpVoted & ReSteemed]
I am lock and load :D ready to the war!!!
It will bankrupt them short the biggest bull market in history!