Hi!
I'm a bit confused by all the talk about how bitcoin futures will affect bitcoin price.
As far as I understand, a futures contract is a binding agreement between 2 parties where mr A will buy an asset from mr B at a beforehand specified price and time.
The asset can be any commodity like oil etc, and are used both by producers as hedge and by speculators.
It is often possible to settle the agreement directly in cash, without buying/selling the actual underlying asset. I suspect most speculators prefer this option.
So, how will bitcoin futures work?
Will they require buying/selling bitcoin itself or will they just be settled in fiat cash?
I suspect these futures will primarily be used by speculators who probably will prefer to just settle them in cash.
So why would such a contract affect the bitcoin price at all?
I'm new so thanks for taking your time and explaing this to me
There are a lot of people who are against bitcoin, misunderstanding it to be a bubble and bull shit. How this will affect is that there'll be corruption if there is no intervention by SEC. The bulls of stock market will play with the prices like hell, trust me. To some extent there'll be a panic and bull shitting about the bubble asset- bitcoin. I feel this bitcoin future thing is just not the right thing for bitcoin. I'm a bit confused by all the talk about how bitcoin futures will affect bitcoin price.
As far as I understand, a futures contract is a binding agreement between 2 parties where mr A will buy an asset from mr B at a beforehand specified price and time.
The asset can be any commodity like oil etc, and are used both by producers as hedge and by speculators.
It is often possible to settle the agreement directly in cash, without buying/selling the actual underlying asset. I suspect most speculators prefer this option.
So, how will bitcoin futures work?
Will they require buying/selling bitcoin itself or will they just be settled in fiat cash?
I suspect these futures will primarily be used by speculators who probably will prefer to just settle them in cash.
So why would such a contract affect the bitcoin price at all?
I'm new so thanks for taking your time and explaing this to me