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Derivatives Anonymous Mon Dec 9 18:35:55 2019 No.16513175 [Reply] [Original]

Can we have a discussion about derivatives and why there's such a scramble to connect them to crypto? I found an explanation on Investopedia here: https://www.investopedia.com/terms/d/derivative.asp - I was hoping to get a more dumbed down version of this though to help me and hopefully others wrap our heads around it. Thanks anons

Anonymous Mon Dec 9 18:47:47 2019 No.16513269

>>16513175
Its betting on underlying assets

and underlying asset can be literally anything

Assume you have a piece of paper and you take a pen and write «chainlink is shit» on it.

You now say that the value of this paper goes up or down 100$ every time a goal is scored in a match between Germany vs Brazil in 2022. If germany scores, it goes up, if brazil scores it goes down.

Now you can buy 10 of these papers and watch the game. Germany wins 7-1 and these papers are now worth 600$.

Anonymous Mon Dec 9 18:51:23 2019 No.16513297

>>16513175
Let me give you a real life example

In scandinavia there is an exchange thats called nordnet.

They sell bitcoin derivatives.

Meaning they sell useless pappers with bitcoin writting on them, but value of papers is derived from real bitcoin price on another exchange.

Reaaon derivatives have stupid names like «xbt bitcoin» instead of bitcoin. Because they are trading worthless paper and not real thing.

>>	Anonymous Mon Dec 9 18:52:14 2019 No.16513302 >>16513175 These neckbeards think they can capture value from the derivatives market evem though it's controlled by Jews who buy policians like (((Sherman))) to prevent us from ever making it

Anonymous Mon Dec 9 18:55:08 2019 No.16513329

>>16513269
>>16513297
Thanks anon this is really helpful
>>16513302
You don't think everyone and their mom is going to jump ship to the next hot money making opportunity like every other technology revolution in human history? I'm sure plenty of people fudded the internet while secretly trying to find ways to make assloads of money off of it

>>	Anonymous Mon Dec 9 18:57:15 2019 No.16513351 >>16513175 >and why there's such a scramble to connect them to crypto there isn't

>>	Anonymous Mon Dec 9 18:58:50 2019 No.16513366 >>16513351 This

>>	Anonymous Mon Dec 9 19:04:06 2019 No.16513398 >>16513351 >>16513366 Weak misinformation.

>>	Anonymous Mon Dec 9 19:08:19 2019 No.16513421 >>16513351 >>16513366 What makes you say that?

>>	Anonymous Mon Dec 9 19:09:04 2019 No.16513424 >>16513421 >>16513302

>>	Anonymous Mon Dec 9 19:10:44 2019 No.16513436 File: 7 KB, 337x352, 1526937365303.jpg [View same] [iqdb] [saucenao] [google] >>16513175 Bitcoin futures on CME?

>>	Anonymous Mon Dec 9 19:54:10 2019 No.16513779 >>16513175 >HUUUUUUUUURRRRRRRRRR: The post

>>	Anonymous Mon Dec 9 20:47:53 2019 No.16514267 >>16513398 >>16513421 They don't care about/trust crypto nor do they really understand it or need it

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