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Title: Possible reduction of price volatility - futures as a balancing factor Post by: NCGreturns on May 22, 2018, 04:31:58 AM Interesting short doc considering appearance of BTC future market:
https://www.frbsf.org/economic-research/publications/economic-letter/2018/may/how-futures-trading-changed-bitcoin-prices/ One would argue against as there should be relatively inelastic supply of the coins but altcoins fill this role quite well already. In connection to supply elasticity see this old thread: https://bitcointalk.org/index.php?topic=1207731.0 Title: Re: Possible reduction of price volatility - futures as a balancing factor Post by: davis196 on May 23, 2018, 05:42:51 AM The only way futures trading changed the btc prices is that it reduced the btc potential price growth.
The big companies and institutional investors can buy futures contracts,instead of buying btc directly. This reduces the market demand for btc and reduces the btc price. Title: Re: Possible reduction of price volatility - futures as a balancing factor Post by: okala on May 23, 2018, 06:37:42 AM Stability is what is going to encourage mass adoptions especially from the wholesalers and retailers. The volatility in prices has reduced and we expect things to get better in future than were it was. I believe that matured mind have started to enter into the market and it is healthy for cryptocurrencies market and its advancements.
Title: Re: Possible reduction of price volatility - futures as a balancing factor Post by: BrewMaster on May 23, 2018, 07:47:56 AM not at all.
futures are only limited to a limited number of people from a limited country not the whole world and people aren't all using futures specially because of taxes. but it is hard to accept right now because bitcoin has been in a bear market that we can't shake for nearly as long as futures started. Title: Re: Possible reduction of price volatility - futures as a balancing factor Post by: Tankdestroyer on May 23, 2018, 02:01:17 PM The only way futures trading changed the btc prices is that it reduced the btc potential price growth. How did it reduce bitcoin's potential growth? Like what this statement said:futures are only limited to a limited number of people from a limited country not the whole world and people aren't all using futures specially because of taxes. IMO futures is just a means for bitcoin to attract institutional investors that will help reduce price volatility by multiplying bitcoin's real world use cases. Also, bitcoin futures is only a contract used to buy or sell btc at a specific future date and price. It is only like a bet(but removes the risk of holding btc while speculating). It might lessen the demand, but it will not impede bitcoin's price growth. |