why are future prices of bitcoins so much higher than spot price of bitcoin

[jajansen]

I noticed on icbit.se that future bitcoin prices for 4 months contract are about 50% higher than spotprices. Anybody has a plain explaination for this?

[DeathAndTaxes]

I noticed on icbit.se that future bitcoin prices for 4 months contract are about 50% higher than spotprices. Anybody has a plain explaination for this?

The "market" (at least icbit.se participants) believe Bitcoins will be worth 50% more than spot in 4 months.

If Bitcoins are worth $300 today and you believe in 4 months they will be worth $450 why would you sell a contract for less?

Someone buying the contract believes the price will be higher, someone selling the contract believes the price will be lower.

[jajansen]

Because of then instead of buying the future, i would rather buy the bitcoin for 30% less saving me some bucks... But yes, the consensus of the parties particicipating in futures imply that in 4 months bitcoins will be worth some 50% extra.......

[beetcoin]

it's the time value of BTC. by pooling the opinions of people investing, they are using group wisdom to better predict where the market will be.

check it out: http://www.youtube.com/watch?v=iOucwX7Z1HU