/biz/ - Business & Finance

[Anonymous No.5165762]

Futures should not affect the price of bitcoin at all, even theoretically.

All of these new futures contracts are cash settled, which means that you can't actually get bitcoins if you try to by a futures contract for them.

This is very different from a future for something like crude oil because at the end of the contract you can get crude oil delivered to you.

On the contrary, you cannot sell a real bitcoin if you sell a future contract.

Really there's no reason to call it bitcoin futures at all, it may as well be, "future contract A" or future contract "Shrikeli" because it has nothing to do with bitcoin.

Why make this thing at all then?

Because people are literally that retarded.

[Anonymous No.5166107]

>>5165762
The only thing retarded here is you anon. Learn what futures are first (here's a hint, its not a bet on the future value of the underlying) before posting bullshit. There are numerous ways a derivative can affect the price of an underlying while not being directly settled.
For one, arbitrage will happen regardless, because there will be money to be made when market is in contango or backwardation. Arbitrage should theoretically lead to regularization of volatility.
Futures are useful when trying to offset risk exposure, think of miners locking in prices via futures and passing on volatility to speculators. All of that will affect prices in some way. Can't just say "hurr no effect cause its not directly settled"

[Anonymous No.5166259]

>>5165762
You are retarded

[Anonymous No.5166309]

>>5166107
Why do cache settled futures create arbitrage opportunities resulting in downward pressure? I believe you but don't understand

[Anonymous No.5166311]

>>5166107
/thread

[Anonymous No.5166374]

>>5166309
Bitcoin 20k

Futures 2k

Why would you not sell all of your bit coins and buy all of the futures

[Anonymous No.5166486]

>>5166374
Because holding a future is not the same thing as holding bitcoin...?