Quote from: knien on December 11, 2017, 08:52:11 AM

Quote from: bitfools on December 11, 2017, 08:47:40 AM

Quote from: johnnycash70 on December 11, 2017, 08:33:11 AM

Hi

i have a quick question regarding the going live of Bitcoin Futures at the CBOE.
Need they to be covered in real Bitcoins or is that a complete stand alone OTC market?

I hope its a OTC, the crypto market should not be influenced by the traders of that lottery trading.
Thanks

Its a US DOLLAR CASH MARKET, no BTC are involved

It's a derivative meaning its nothing to do with BTC

Think of it as a FOOTBALL POOL ran by mafia where you bet on future team score, in this case the bookie is goldman-sachs CME/BRR/GS

The bookie doesn't touch the ball, the bookie doesn't have contact with players,

Same here the futures market just uses the exchange prices to average the price, but the customers buy bets as to whether the price go up/down and how much, in this case they bet on blocks of FIVE(5) BTC, and bet how much UP/DOWN. If they own 1,000 BTC and sell at an exchange and the price drops, then they can cover the loss because if the sold a 'short' on the futures market then say BTC drops $15k to $10k, they make $25k, that's block of 5, but they sold 1,000, so they make $500k on the price drop. If the price of BTC doesn't drop no loss, its just insurance.

[ my current understanding is the price of the block of five for the trade is currently $400, thus in the case the profit on each would be $5k less $400, or $4600, THE HOUSE ALWAYS TAKES ITS POUND OF FLESH, its ZOG-GS]

The only ppl who will use this futures trade is WHALES that need to buy insurance so that if their BTC sell transaction causes the price of BTC to plummet the futures 'short' will make them rich to cover the loss on drop of price back at BTC

Now that there is insurance to DUMP BTC, everybody is going to cash out.

Merry XMAS

Interesting explanation on the future trades.
So you expect all the whales to cash out now and BTC price goes down ?
And what is your long term expectation on this ?

This is just one theory. But it's one of the option, it's now way this is 100% what's gonna happen.