Betting On Bitcoin To Be $10,000 In An Year - Ledger X Is Already Trading Futures
Ledger X is a company which started to trade Bitcoin derivatives a month ago. A "derivative" is, in layman terms, some sort of a bet, which is enforced by both parts.
A "future", for instance, is a bet that a certain asset will worth a certain value at a certain point in the future (just realized that I used so many times the term "certain", in conjunction with the term "asset", that I may even summon @ned's twitter account - @certainassets).
Put it very simple: you bet something like "I think the Pound will be 2 EUR in 1 year and I'm willing to pay 0.2 USD per Pound for this bet". If you win, and the Pound is really worth 2 EUR, then you're allowed to buy Pounds at that price. But if a Pound is lower than 2 EUR or zero, you lose the money.
Ledger X launched their first Bitcoin future and they already got a bet for it. I'm not writing about this news to deliver a free workshop on fintech lingo (I'm barely qualified for this) but because the price of this future is intriguing.
Somebody placed a "bet" that in December 2018, Bitcoin will trade at $10,000. The collateral for this bet was around $2,250. So, if Bitcoin really is at or over $10,000 in December 2018, that guy will get to buy it at that price. But if not, he will lose $2,250 / Bitcoin (we don't know yet the number of Bitcoins for which the bet was made).
I don't know about you, but Bitcoin trading at $10,000 a year from now is not only very predictable, but almost certain. I know, nothing is certain in this world. Absolutely nothing. But looking at the trends, looks like this level will be reached way sooner.
December 2018 could see Bitcoin over $15,000. In which case, the guy who placed the bet will make one hell of a deal.
But the seller could also make some good money if Bitcoin is not traded at $10,000. He will get $2,250 for every Bitcoin that was part of the bet.
Opinions?
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December is too far... i feel that it will happen before the end of November...
It's December next year, read again :)
"December 2018 is too far... i feel that it will happen($10,000 BTC) before the end of November 2017"...
This is very likely, and there are very many people thinking like you!
:))
As @hm818 said: December 2018 and even December 2018 is too far... well, not 2017.. I believe it'll become 10,000 by mid January next year.
Remember, gambling is illegal, unless it is part of the stock market.
Good reminder :)
Or the state run "lottery" systems.
It's always a gamble and from what I've seen the only guarantee when trading crypto is that it will do exactly what you think is impossible. If Bitconnect collapses anytime before the end of 2018, it could easily cause the price of bitcoin to drop below $10,000.
Really liked this:
I'm telling people the same... I know someone IRL (in real life) who was skeptical about BTC before it reached $5000... I said to him that even today's $7700 is too low for BTC.
Wow, didn't understood until know how derivatives work, but reading this I feek like I get the idea. Why do them exists, I mean what are their purpose in economy I still don't understand... yet, I know that this is not the point of your article (which again reminded me that you keep sharing valuable news for the crypto world) but it still intrigues me :)
Another means to invest into bitcoin is just going to increase its chances of surpassing 10k. Rise bitcoin rise...
Maybe I will buy some futures at a point :) Looks like a good deal
Yes, looks like a good one. I'm a bit worried about the other guy, not the buyer. :)
The sellers are the big investors trying to get a more certain fixed percentage, it's an interesting market. If in your example, btc makes it to + 10.000, he got 25% profit and he is happy with that. If BTC stays at 8.000, he also got 25% profit as he gets the money from the bet.
In a coindesk article about this it says:
Am I reading this wrong? A 25% chance of being over $10k by the end of next year? I would give it more than a 25% chance of being over $10k by the end of THIS year!
I wish I was an “eligible contract participant” because I would buy these options with everything I have!
That's the same article I'm citing, by the way. And yes, it's really, really intriguing.
I think it's a safer bet to just by bitcoin and hold but that's just me. As a side note: second paragraph: it should be "will be worth"
Welcome to the age of Wall Street in the crypto world. This is only the beginning. The derivative market is going to heat up very quickly. In many of these instances, the tokens will need to be bought by one party to cover the "bet". You can see options requiring the asset to be purchased before writing the call or short squeezes or a host of other moves that require adding BTC (or any other crypto they are trading).
Yeah, that's what I thought, apart for the actual hype and attention created, this market will increase demand, because some trades need to have the "object" of the bet covered. The downside may be that many of these assets can be locked, or out of the market for a long time. Unless somebody comes with an insurance contract for borrowing it and... yes. Wall Street all over again...
They have a way of popping up everywhere. If Wall Street can sell it, they will be involved in it.