Will CME future lead to bitcoin manipulation? Some ideas..steemCreated with Sketch.

in #bitcoin6 years ago

On 10 december Chicago Mercantile Exchange (CME) will start trading bitcoin futures.
Does this create a sistemic risk for Bitcoin? Is there a manipulation risk?
I want to share some things that I have observed in my economic study at university.

First, The fact that they don't have real bitcoin doesn't really matter. The future will be negotiated on a regulated and opern market and probably CME volumes will be really better than Exchange volumes. So, in the market, people will psicologically be influenced more by future than by realt BTC. This is normal for every real asset that has a negotiated future. Wen you open television and they talk about oil price, they don't say "oil at the saudi oil camp is...." but they say "future's prices are...". So with CME futures some big market shocks can be trasmitted to Bitcoin.

What will be banks-Future relation?

They will easily be able to short bitcoin shorting the future. This will greatly affect the BTC market, because on CME will be moved really huge volumes. Not bilions or milions, trilions of daily volume. This is the enormous liquidity that is moved with CME, and this is what will enter in BTC future market.
CME futures will be dominated by trading volumes of great investors and bank, also with hyper-tecnologic methods like High Frequency Trading (you can find some valuable info at https://www.investopedia.com/terms/h/high-frequency-trading.asp), as evry traditional financiary market. We will see great games, includind probably flash crashes on future.

So, pay a lot of attention. Surprises are really, really possible.
Hope for the best, prepare for worst :D

Coin Marketplace

STEEM 0.28
TRX 0.11
JST 0.030
BTC 67280.14
ETH 3764.45
USDT 1.00
SBD 3.57