Bitcoin Forum

When do you think that Stocks and other traditional financial derivatives will be connected to Bitcoin or other cryptocurrencies?

Is this even possible? And if this was possible , could we see futures using BTC to short example GOOGLE?

Or if i wanted to trade my BTC for Google stocks , is that possible?

There are two ways you can take this:
1. will bitcoin be tradable directly for stocks?
2. will stocks be put on the blockchian?

1. You can use a go-between such as fiat to convert cyrptocurrency to stock on exchange sites such as etoro (there are probably others but I've used etoro).
2. This is possible but I don't actually think it should or will be done because it could be possible for someone to own everything. If they wanted to, it wouldn't be hard to do it but you'd ve to make it so it will be difficult to upgrade the network without a certain consensus and a certain timelock to avoid sabatage.

Generally to short something you need someone else to long it. It would probably get really confusing trying to do things like longing bitcoin with gold and the derivatives markets that sell contracts just get annoying because it's how companies print money when done badly (and a lot of companies like to do things badly and worry about it later, normally when the company has gone to another ceo and that ceo is on a boat somewhere untouchably enjoying their retirement)...

I think this is possible in the future, but it depends on governments. They will probably prefer to bring cryptocurrency into their world rather than go into crypto world. So, you will likely follow their difficult rules before you'll be allowed to participate.,whereas in real Crypto world (which is basically a decentralized world) rules are quite straightforward and not too hard.
We can only be sure of trading decentralized "companies" in the future




I think there are companies that offer similar  service... I am not sure though

This is possible. Abra just launched this kind of service, I have seen this news before but until now I haven't used them.

Abra launches new stock trading service that turns your $BTC into $FB (https://www.theblockcrypto.com/post/10441/abra-launches-new-stock-trading-service-that-turns-your-btc-into-fb)

Is this exactly what you're looking for?

Hmm interesting. I think that would make sense potentially if they were to turn a BTC ETF into a tradable commodity but i would be very wary of Paper Bitcoin being issued in the market. But if they did , they would need to do this with gold / silver / platinum etc. But if that happens , do we end up with a potential gold standard?


Thats a good find. I'm going to do some due diligence.  Cheers!

On the major Wall Street exchanges, BTC base pairs would require Bitcoin becoming a unit of account. (https://en.wikipedia.org/wiki/Unit_of_account) We're probably many years away from that, if ever.

You used to be able to short Google and similar stocks on 1Broker using BTC collateral. They were shut down by the SEC. SimpleFX offers (offered?) similar features but I can no longer find a list of available stocks on there.....only forex, crypto, and indices. They may have closed the stock markets after 1Broker was taken down. These are just CFD markets anyway; they aren't like owning real stock.

Great.

You should try it with due diligence but it's known that Abra is also a reputed company/exchange but they don't have the web app which where I'm always with that's why I can't try them until now.

It requires you to download their app, anyway, they are safe to use.

Your desired scenario could be possible in the future, only if the governments finally accept and adopt bitcoin as a legal currency. Then at that time, stock exchanges would give option to pay using cryptocurrency, or have a trading pair with BTC/Share.

Though that scenario is still far from happening. There are lots of hinders to such adoption. At one point, the government wants to mint their own coin and release it to the public, to still give them control over the currency.

it might happen. because bitcoin hasn't been over yet. bitcoin is still ongoing with its development. I still believe, one day bitcoin can be used for real finance. traditional trading or for real stocks. buy real products, stocks, commodities, etc. using bitcoin. I believe that can happen. only need time to realize it.

Completely possible. But that's it. It's only a possibility. Various government institutions, exchanges, and companies need to have a consensus regarding these types of possible improvements and/or issues before such plans could go through. Pretty much Government policies right now remove BTC from the market of most major companies with their rules so BTC has had limited development as of late towards this.

Sides, you could actually see cryptocurrency and the government and various major companies as two sides of a coin. They can't meet yet and well they refuse to actually meet.

Since Bitcoin is a form of money, it can be used as a medium of exchange for anything that has value. It could replace the dollar used for stock trading.
However, if Bitcoin still treated as a speculative asset/commodity, then it wouldn't happen. AFAIK direct trading between commodity and stock doesn't exist, e.g., Gold to AAPL, etc.

Bitcoin is widely used and has replaced USD in the cryptocurrency market. And it's still the best choice for BTC/Altcoin instead of USD/Altcoin of most traders.

Nice information for everyone!

If that happens, it means that the government has considered Bitcoin valuable as a currency that can use as USD, even multinational. Remember, nowadays, when we travel to another country, we still have to exchange USD (or your country's currency) to the country you are visiting. Those things make it easy for the government to control money laundering purposes and for taxes. But with Bitcoin, it's another complicated story.

Nope. You can't print Bitcoin into oblivion. The stock market currently has been pumped similar to how crypto was pumped during the hype, but in this case it's debt fueling the biggest bull market the world has ever seen. You can't get that done with Bitcoin or Gold, both forms of money you can't create $100 billion of at will to pump in the economy.

The only way Bitcoin could play a role is that governments issue their stablecoin on Bitcoin and print as many of that as they can, but they can do that just as easily with their own private blockchain/network. I prefer them to use their own blockchain/network, which means that they don't have to inflict any damage on Bitcoin in case they somehow mess up, which they will at some point.

This is a good initiative by crypto wallet Abra. They are not only after crypto now but in stock trading too good thing is you can both monitor your different holdings in one platform. I think it will also be better if a company will launch their web platform as well.

Questions are more of a wish than reality on ground. The real questions we should be asking is that are the developers working towards achieving this kind of feat. Just as @Jackg has said. For what you are asking to happen, then there is need to be a synchronization between bitcoin and the traditional stock markets which won't happen because we wished it to happen but because some developers are seeing that possibility thereby working towards it. But now, the developers are more about how to raise ICO, IPO and the lazy ones would go the route of doing hardfork to finance a project that exist and function in their own imaginations.

The same situation is applicable for Bitcoin with lots of unregulated exchanges. No need to use real Bitcoin, just some database/balance to represent it. As long as there is no successful "global proof of keys event" happen, what happens inside those exchanges can be questioned.

However, it's not really the main topic. With Bitcoin as MoE/UoA, the stock price could be represented with Bitcoin value. Of course, the stock price might seemingly get cheaper and cheaper since Bitcoin itself is good money.

My point is, it's not about can or can't, it's about willingness. Does the government want such a market? I don't think so.
It's possible if the government acknowledge Bitcoin as money.

Bitcoin as a currency has speculative value, and is viewed as a currency, stocks and bonds are also speculated on. Would investors want their assets to be hinged on another asset with (possible) wild volatility? I may be wrong in my supposition
There are many applications of Bitcoin, but first, I think it has to become a fairly atable currency.
Governments' influence would determine the direction that Bitcoin would take in a few years, adoption, regulation, control or rejection.

If the stock is integrated into the blockchain, I think this is possible. But I think companies and the stock market will never do this because it doesn't help the stock market to grow, and it makes the stock trading process more complicated so much in advance.

Agree, in addition, contrary to the doomsayers' view about the collapse of Wall Street, debt problem, etc., so that Bitcoin could rise as the savior, which are improbable. Even with the collapse of the government, there is no guarantee that Bitcoin won't fail as well.

If we are talking about the stock market, we should realize that it is a highly regulated market. Hence, Bitcoin also has to be highly regulated. Do we want such a thing? It is a different discussion.

This is entirely feasible, the only problem is that the government does not accept it. Basically, Bitcoin has not yet been accepted as an official currency like fiat, its value is still very vague. Therefore, using bitcoin directly to buy stocks is impossible, you can only through intermediary transactions with cash to buy stocks. And on the other hand, the stock can't be put on the blockchain either, the stock represents part of a conglomerate's control, which means the controller has to be identified publicly, but for bitcoin, it seems to have can hide their identity.

Well bitcoin and other cryptocurrencies will not be welcomed by the government as long as it contains high volatility which is absolutely impossible to become. Stock market and Crypto market is a well separated market by the means of trading on which the government has favored the stock market coz they are earning from it.

Yeah, that is the main reason why government do not want to take risk with bitcoin because of money laundering by which it can be easily pull off with bitcoin.

They might go in with that venture and upgrade soon.

I think there's a demand from their users to get into a web/desktop app but it's on them that should work for it. We may see them have it soon or they don't really have any plans of making one soon.

Other platforms that are focused in stock might venture into crypto too, vice versa.

Gold is also used as a speculative asset. The disadvantage of gold is that it can't be used as a form of payment and Bitcoin can. As you can see it's not speculation that prevents assets from being used as a medium of exchange but their physical ability to be a medium of exchange.
Bitcoin is the first to combine a store of value and a payment method so it could also be the first to connect everything.

Stocks and cryptocurrencies are completely different, and I think that these two markets will never work together. Cryptocurrency is not guaranteed by any real assets, but for stocks they are guaranteed by real companies, real factories and teams are clearly public and controlled. In addition, the stock market is also much more stable than the cryptocurrency market, So it's hard for us to combine these two markets. It is best to be as we are now, we can make more profits from this market in the future without control.

I think not possible. Google is a big business and it has real and useful services for real society. Bitcoin is just a digital asset, it has no real value and its price rises just because of the expectations of the crowd. it can collapse at any time if that belief is no longer in the crowd, so it can't be transformed into a form of stock and nobody will manage it.

And why not, of course it’s possible today to buy Google shares. You only need to use reliable sources and not be deceived.

Possible if all other big names such as Google starts their own cryptocurrency and exchanges open up a trading pair for BTC plus that certain cryptocurrency. Right now, these brands are focused on getting more fiat money coming in to their stocks rather than any other exerimental/highly-volatile digital currency.

It might not happen immediately but I think we'll head there eventually given the rising percentage of people being aware to the fact that cryptocurrencies are a thing of the future.

I don't see any plans from either the NYSE or the SEC allowing other currencies both fiat or crypto to be traded directly to stocks. So far it's only the US dollar being accepted as a legal way to buy stocks in the US stock market. So not until that day where we can use crypto directly in these traditional markets can we see a direct affect on these assets. And in my opinion I don't see these from happening since if they accept this kind of change then they are opening up a volatile asset to take advantage of a stable market which would just disrupt the normal flow of the market.

in this case why is not possible, if google shares can be traded with bitcoin, I think this is just a matter of recognition, so that everything can happen, although many assume bitcoin can be destroyed at any time, but with a large community then its existence will always be there

This is what every person is waiting for that supports Bitcoin. Isn't it the goal to be accepted and let Bitcoin be ETF? I think if it is ever acceptable to be one traded to common stocks like Google, bitcoin would have more significant value, and I think there would be more applicable.

Being realistic would be more favorable so that we wouldn't be expecting so much. Bitcoin is still a far way off.