Quote from: totol05 on March 18, 2018, 06:24:38 PM

I tried to understand the essence and benefits of futures trading BTC
Futures on bitcoin will be traded next week. People who for the last few years constantly trying to convince everyone around that bitcoin is a bubble, must be happy: now they can finally move from words to deeds and begin shorting. But are they right?

Future (futures contract) a derivative financial instrument, the standard urgent exchange contract of purchase and sale of the underlying asset at the conclusion of which the parties (seller and buyer) agree only on the price level and delivery time.

Craig Pirrong, Professor of business at the University of Houston says:

"Futures largely simplify the game to decrease than to increase, so that the majority of them, apparently, will benefit the bears. Therefore, the appearance of such a tool can reduce the cost of bitcoin".

How is shorting, I have studied the example on the stock market.
EXAMPLE. The investor can borrow paper, say 1 BTC, mind you, he takes not the money. The point is that he took 1 BTC for 16,000 thousand dollars. Sold it for 20,000 Then periscopes for 16 again. Gave ficers 1 BTC back but he got a profit of 4 thousand dollars (0.25 btc). So it will work

However, the futures will simplify the game to increase. The process of acquisition and storage of bitcoins is extremely unpleasant for many investors: you either have to worry about the fact that they are not stolen, or stored on paper, making them difficult to use as trading assets.

A substantial simplification of the process will increase the number of people wishing to open short positions, but those who play on the rise, so much so that their number will grow much faster.

Lou Kerner, partner Flight VC, a venture Fund investing in cryptocurrency. "we believe that from the point of view of fundamental non-market factors-such asset is quite reliable, but they tend to sell out".

Investors with big money still do not really believe in bitcoin and cryptocurrencies. All now wait for the futures I thought of what awaits us after this still greater growth. But now I'm not sure. I think now all that is left us is to wait and see how the market will behave.

I hope the article was useful

Ofcourse the real purpose of cryptocurrency is for the global payment all over the world.
But people nowdays just usi it as a trading thing just like comodity.