Quote from: Ludwig Von on December 09, 2017, 11:57:03 PM

Quote from: becoin on December 09, 2017, 11:43:41 PM

Quote from: realr0ach on December 09, 2017, 11:13:40 PM

Quote from: Raja_MBZ on December 09, 2017, 11:03:26 PM

After launch of bitcoin at CBOE futures

Then bitcoin becomes a casino gulag where the house always wins and there is no reason to go near it instead of metals. In metals they can only naked short it to cost of production. In bitcoin, cost of production is fully floating and recursive based on it's own demand via hashrate, so they can literally naked short it to 0 instead of some type of cost of production floor because no such thing even exists in bitcoin. Shorting metals below cost of production causes miners to stop bringing gold and silver to market, so it's counterintuitive because it would just create scarcity, so they don't do it (or at least not for long periods of time). Shorting bitcoin below cost of production forces miners to turn off, thus lowering the temporary cost of production floor even further while the supply from miners recirculating coins remains unchanged. This is why naked shorting is FAR MORE detrimental to bitcoin than metals.

This is nonsense for a very simple reason. If there is gold price increase there will be increase in supply by opening more gold mines. if there is bitcoin price increase you can't increase supply by opening more bitcoin mines!

The whole futures narative will be a turd and fizzle into the coke filled brains of Wallstreet in a few days. Nothing to see in Coinlandia.

Agree. The only valid use case I can think of would be a whale protecting their position at the top of the market when they know they have a large fiat expense coming up (eg tax) and they don't want to cash out yet. The problem is they can't use BTC to underwrite the trade (it has to be Fiat) so it's useless even for simple hedging.

Tone's recent interview with Ugly Goat explains the whole scenario well:

https://www.youtube.com/watch?v=gXUEfZY4zRk