Crypto Update: Here Comes NASDAQ BTC Futures!
According to CNBC and the WSJ, Nasdaq has plans to launch bitcoin futures as early as the second quarter of 2018. Nasdaq isn't the only market maker looking to launch a product around BTC, they will be up against fierce competition by the CBOE and the CME who have also announced plans to launch futures tied to Bitcoin.
A Nasdaq spokesperson said that the exchange's futures would differentiate from CBOE and CME because Nasdaq would base its price off of 50 bitcoin sources from around the world, while CBOE is currently using one and the CME is using four.
Although I don't feel like Nasdaq's approach is groundbreaking, I do believe because of their superior method and brand recognition it may put the other two firms at a disadvantage.
One issue facing bitcoin products is the issue of what happens if there is a "hard fork," i.e. what happens if bitcoin splits into competing products. Nasdaq said that both sides of the fork would go in the index for one day, and after that the value of the other fork would be reinvested in bitcoin and the value of the index would be adjusted.
This is pretty much what modern day stock markets do. They create new products which peg to certain events. This is pretty much the same phenomenon which caused the great housing bubble crash in 2008. Its a slippery slope I say!
So, for example, if bitcoin at $11,000 split into two forks of $9,000 and $2.000, both would remain in the index for a day, and then the $2,000 fork would be reinvested in the $9,000 bitcoin and the index would be adjusted.
Bitcoin broke above $11,000 for the first time Wednesday and is up more than 1,000 percent in 2017.The Wall Street Journal first reported the Nasdaq futures launch. The Journal also reported that Cantor Fitzgerald is working to launch a bitcoin derivative next year.
Bitcoin started a whole new industry consisting of a whole array of different cryptocurrencies. Regardless of what happens to Bitcoin, the industry is here to stay. There's no putting the genie back in the lamp. Futures and derivitives may ultimately destroy Bitcoin but original believers of Bitcoin, people who appreciated it as an alternative to modern banking will certainly find another more suitable currency to invest their money into that more closely follows Satoshi Nakamoto's vision of a trustless decentralized economy.
What do you guys think about this news? Is Nasdaq getting involved a good thing for Bitcoin and the cryptocurrency industry?
Please leave thoughts and feedback below.
Thanks for dropping by @techblogger
Source:
Nasdaq to launch bitcoin futures in the second half of the year, officials say - CNBC
There comes the big money
Now that the bankers are involved they will do their best to ripe owners of bitcoin. They will crash it to the ground and grab as much of it as they can and then let the demand pull it back up and collect dividends. They have done this with stocks, oil, and gold. Not going to surprise me that once they get publicly involved they will make price of bitcoin go down for their own good.
Since they are a technology company listing mostly tech stocks, NASDAQ should have been the first to allow bitcoin futures rather than CME.
hope that dosent affect the characteristics of bitcoin in any way . by characteristics i mean its unique features.
Well, I think if you look into Segwit and the Lightning Network you'll see today's Bitcoin is very different from the original BTC of a year ago...
I think segwit and lightening network actually maintain the integrity of the original Bitcoin vision. They are off-chain additions that leave the Bitcoin core untouched. The on-chain changes and evolution of other blockchains is a risk with those of security vulnerabilities and lose of vision
Here's a video that might make you change your mind. I'm not a big fan of BCH but I know why it was created (to keep Satoshi's dream more intact..) :
Thanks for sharing this about the possible nefarious agenda behind the Lightning Network. But something that wasn't clear to me...why will the transactions fees be prohibitive to getting coins back out of the Lightning Network? Transactions fees will be an overhead to transacting Bitcoin in general and this doesn't impact you much of you're using Bitcoin as a store of value i.e. Not all Bitcoin will go on the LN for Blockstream's plan to work out
It's like traditional finances are going through the 5 stages of grief. Here comes acceptance! Thanks for your brilliant article.
I'm still undecided on what to think of these futures markets. No money will actually be entering crypto, yet they will have a very influential effect on the price of crypto..
But long term it does mean regulated adoption may be coming which is of course a great thing.
Good read! I think big institutions coming into Bitcoin will try to manipulate the market and essentially look to act to the detriment of the network. This is because ultimately, Bitcoin is the biggest death threat to the current financial system. Of course, like you said, there is no putting back genie into the bottle...
Dont worry be happy. All coins going to the moon
They can't manipulate it like gold.
https://steemit.com/bitcoin/@ni-co/how-do-bitcoin-futures-influence-the-price-of-btc
Will the launching of bitcoin futures lower the price or bitcoin or will it give more bullish to bitcoin? thanks
It's going to be hard for them to manage the future contract long term with no deliverable, imo. We might even see it implode, which could end up working out really well for bitcoin. I read that their whole reason for creating the future was to control price and stabilize the market. They obviously misunderstand what bitcoin is at it's core... will see what happens in a couple weeks!