Post
Topic
Board Economics
Re: Bakkt is done?
by
deisik
on 14/02/2020, 14:59:02 UTC
Very interesting.  I was among those who thought Bakkt would boom once launched, because I'd figured that hedge funds and other big-money investors would want in on the crypto game, and the only good way to do that would be through futures and options.  Apparently the reception is tepid at best, and I'm kind of surprised to see that.

Even the volume on the CME seems pretty low.  I've no idea what's going on behind the scenes, but my guess is that if business doesn't pick up on Bakkt, they'll shut their doors

My take is that no one is actually interested in Bitcoin derivatives

How come? The reason for that is simple. You can store Bitcoin without any hassle and the requirement to pay storage and transportation costs, for example (apart from transaction fees, obviously). And in this regard Bitcoin is strikingly different from gold, oil, gas, and other material assets. With them derivatives make perfect sense as you can buy and sell paper gold, etc. But paper bitcoins simply don't cut it as you can just as easily have real bitcoins totally under your control in your personal wallet
I disagree with that, everyone needing to sell an important amount of BTC could have interest in BTC futures.
For example if you need to buy a car or a flat in June you will be happy to be able to secure now a virtual sell of your bitcoins at 10800$ on a future exchange

Makes no sense if you ask me

You can just sell your bitcoins for dollars (or whatever) and get done with that. Or not sell anything at all and just keep your bitcoins intact until you actually need them, and hopefully with their price risen by that time. The example you provide makes sense for producers who buy raw materials in advance and want to secure current prices for future production because it affects their profits. With direct consumption like buying a car or whatever futures are pretty much useless (not even speaking of trade costs they incur)

Us little folks are no fools either, I mean not anymore since we got Bitcoin.

Only a select few think that way. It's great for them that they have that option but the vast majority don't think that way and never, ever will. They'll leave it to the big dicks and the dicks will be only too happy to package it up nicely and feed it back to them

So far it hasn't played out that way