I don't fully understand the Futures market.
How could futures impact bitcoin and its price?
Dude , you should understand this simple thing! People are investing in Bitcoin because of its increasing prices and it's increasing because people know that the world is turning digital. So online currencies can prevail over paper currencies. This is me main reason why Bitcoin is in the headlines and the countries are in a dilemma .
I think you might have misunderstood my question or I didn't make my question clear enough. My apologies.
I know why people invest in Bitcoin, it's benefits etc.
What I was asking is if the 'futures market' could impact directly on the bitcoin price?
I thought that futures was just a bet on an out come by a certain date, in which case it would have no impact. Its just a bet.
However if futures means that you are betting on an outcome and that you are also promising to buy at that the agreed price on an agreed date, then it could have an outcome because they would now hold bitcoin and collectively have leverage and/or influence on its price.
Miners or holders of large quantities of bitcoin could also play the futures market selling short, causing panic and when the price drops buy up again.
They could buy up bitcoins at a low price and if/when the price then recovers, rinse and repeat.
This is what was going through my mind and was wondering if my thinking is right.