Will Bitcoin Trading Be Dominated By Paper Bitcoin?

[bubble1]

The price of gold is manipulated by Bullion Banks and Central Banks.

They suppress the price by selling huge numbers of gold futures, and rolling over the contracts on expiry. The size of the futures market is many many times larger than the physical market, hence the gold price is dominated by these paper transactions.

Currently, this does not seem to be a major factor controlling bitcoin pricing.

Recently, I read:
LedgerX LLC has received permission to trade bitcoin futures and options from the Commodities Futures Trading Commission (CFTC). ProShares has filed an application for an ETF dependent upon receipt by the Chicago Board Options Exchange (CBOE) of approval for trading of long and short options on bitcoin. Wall Street sees the demand and wants a piece of the supply.

Does that mean that we can see similar shenanigans, where the price of Bitcoin is totally determined by the Central Banks and financial organisations, rather than by supply and demand from bitcoin users?

What does that mean for Satoshi's dream of independence from central banks?

Am I being unduly pessimistic?

[aardvark15]

If banks start to buy Bitcoins then they could have some control of the market. However, I don’t see this as a huge threat since they are late to the game and there are individuals all over the world that own some Bitcoins. Another thing that keeps them from controlling it is that there is a limit to how many Bitcoins there will be. Gold is a limited resource but we don’t know how much there is. Fiat is just printed whenever the government needs to. Bitcoin has a limit and many of the coins are already in the hands of the people. As long as we hold on to what we have, they can’t take full control.

[bubble1]

Another thing that keeps them from controlling it is that there is a limit to how many Bitcoins there will be. Gold is a limited resource but we don’t know how much there is. Bitcoin has a limit and many of the coins are already in the hands of the people. As long as we hold on to what we have, they can’t take full control.

You may be right that the BC physical limit necessarily offers some protection.

But I still don't see how anyone can prevent Naked Short Selling of BC, which is bound to affect the price. Or am I missing something?

[olubams]

The price of gold is manipulated by Bullion Banks and Central Banks.

They suppress the price by selling huge numbers of gold futures, and rolling over the contracts on expiry. The size of the futures market is many many times larger than the physical market, hence the gold price is dominated by these paper transactions.

Currently, this does not seem to be a major factor controlling bitcoin pricing.

Recently, I read:
LedgerX LLC has received permission to trade bitcoin futures and options from the Commodities Futures Trading Commission (CFTC). ProShares has filed an application for an ETF dependent upon receipt by the Chicago Board Options Exchange (CBOE) of approval for trading of long and short options on bitcoin. Wall Street sees the demand and wants a piece of the supply.

Does that mean that we can see similar shenanigans, where the price of Bitcoin is totally determined by the Central Banks and financial organisations, rather than by supply and demand from bitcoin users?

What does that mean for Satoshi's dream of independence from central banks?

Am I being unduly pessimistic?

Your fear is valid and if this is successful, it then mean hijackers are coming to defeat the entire dream of bitcoin and I think this is something Satoshi foresaw to have ensure that bitcoin cannot be printed but the issue at hand is that the moment the shenanigans control the bulk of the available bitcoin, then they can make what seems impossible possible.

[aoihs00]

This will not happen because bitcoin works completely different way as compared to the stock market and stuff in the real world.

where the price of Bitcoin is totally determined by the Central Banks and financial organisations

Happening of this even more impossible because if they start controlling the prices of the bitcoin then it would be called as centralised currency and we all know what happens when something is centralised. However they can't make bitcoin centralised for many unknowns reason.


Everyone knows what is the market of ripple and how it fluctuates being centralised alt coin. Its the similar fact for the bitcoin if it get controlled.

[Ucy]

Does that mean that we can see similar shenanigans, where the price of Bitcoin is totally determined by the Central Banks and financial organisations, rather than by supply and demand from bitcoin users?
What does that mean for Satoshi's dream of independence from central banks?
Am I being unduly pessimistic?

Good observation. I think it may be their intentions to control majority of bitcoin through their numerous proxies. The interesting part is that they are starting to get involved in the market.
I have a feeling the network will  resist that sort of manipulation when it comes.

[winterland]

The price of gold is manipulated by Bullion Banks and Central Banks.

They suppress the price by selling huge numbers of gold futures, and rolling over the contracts on expiry. The size of the futures market is many many times larger than the physical market, hence the gold price is dominated by these paper transactions.

Currently, this does not seem to be a major factor controlling bitcoin pricing.

Recently, I read:
LedgerX LLC has received permission to trade bitcoin futures and options from the Commodities Futures Trading Commission (CFTC). ProShares has filed an application for an ETF dependent upon receipt by the Chicago Board Options Exchange (CBOE) of approval for trading of long and short options on bitcoin. Wall Street sees the demand and wants a piece of the supply.

Does that mean that we can see similar shenanigans, where the price of Bitcoin is totally determined by the Central Banks and financial organisations, rather than by supply and demand from bitcoin users?

What does that mean for Satoshi's dream of independence from central banks?

Am I being unduly pessimistic?

The issue with that market is that we do not need anything like it with bitcoin, we have a rough idea of how many blocks there are going to be in a year and we know the block reward so we have a very precise idea of the amount of bitcoin that is going to be mined.