Bitcoin Futures- The Bank Attack on the Crypto-Market

[krishnapramod]

The chess match between the banks and Bitcoin just got real. CME Group, the world’s leading and most diverse derivatives marketplace, announced that it intends to launch bitcoin futures in the fourth quarter of 2017, pending all relevant regulatory review periods.

The new contract will be cash-settled, based on the CME CF Bitcoin Reference Rate (BRR) which serves as a once-a-day reference rate of the U.S. dollar price of bitcoin. Bitcoin futures will be listed on and subject to the rules of CME.

Bitcoin futures are explicitly not going to be settled in Bitcoins. They will be settled in dollars. This means that this contract is a means by which to use unlimited dollars to control the dollar price of Bitcoin.

Now we know why the SEC squashed all Bitcoin ETFs. It had nothing to do with liquidity, valuations or consumer protection. It had everything to do with creating synthetic bitcoins made of of dollars to be used by the big banks to dominate and control the valuation of the market.

Anyone who doesn’t believe me in saying that has never watched a minute’s worth of the gold trade.

This is how they control the gold price. They issue unlimited supply of paper gold, settled not in gold but in dollars, to keep the price in the range they believe it should be kept in over a particular period of time.

This is done to suit their needs, not the needs of the gold market participants, i.e. the mining companies, investors, end-users.

All markets are subject to manipulation. And when the manipulators are a protected class of bankers controlling the wealth of the society the possibility of institutionalized manipulation and fraud exists.

Understand that from an evolutionary biology perspective Bitcoin is a mutation which rises to the level of existential threat to central-bank-issued debt-based currency. Gold was put on the futures exchange when they finally realized they could do a better job controlling its price and the perception of the dollar’s strength better than refusing to allow a futures market for it at all.

Bitcoin is getting that same treatment.

Now, like the good little oligarchs that they are, they’re finally scared enough of Bitcoin and cryptocurrencies that they are going to cap their growth through good ol’ fashioned leverage and market manipulation.

Everything else has failed to stem the tide so now it’s time for this battle tactic to be employed.

When CME announced plans for Bitcoin Futures, an article titled Bitcoin dips a toe into the mainstream was published and I do agree to that, it is a big news, legitimacy. But instead of physical delivery, cash-settled contracts and that's a bit unnerving. Possible emergence of a secondary market that might suppress the primary free market. Flow of cash getting diverted to the secondary market. Natural vs artificial scarcity. The Bitcoin market might finally get stable and less volatile which is good, but the stability might be achieved by means of artificial scarcity, suppression, and manipulation by centralized players. In terms of recognition, a CFTC approved Bitcoin futures is definitely positive, but the long-term effect might not turn out to be a positive one.

The CFTC may or may not approve this proposal. If approved and a large capital flows into this market, in the long-term would it be good or bad for Bitcoin? Would the resulting stability and liquidity be good or bad?

https://hackernoon.com/bitcoin-futures-the-bank-attack-on-the-crypto-market-29e1b38a5da

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[Beerwizzard]

I don't realy think that it will have a strong influence on bitcoin. I see to musch risk in BTC futures trading and I don't belive that it will be popular. I can hardly see traditional investors buying this type of futures just because BTC is too unpredictable for them. In general the bitcoin futures look more like a new type of gambling rather than an investment and I wouldn't expect any large flow of capital.

[elkafee79]

I don't realy think that it will have a strong influence on bitcoin. I see to musch risk in BTC futures trading and I don't belive that it will be popular. I can hardly see traditional investors buying this type of futures just because BTC is too unpredictable for them. In general the bitcoin futures look more like a new type of gambling rather than an investment and I wouldn't expect any large flow of capital.

yes, i agree with your opinions. today i believe bitcoin

[davis196]

It looks like the banks  just want to make some easy money by selling futures instead of buying and selling bitcoins.Anyway,this is good news,because it proves that the bitcoin market is bigger and impossbile to manipulate.I`m sure that accepting bitcoin futures will have positive impact over the bitcoin price and more big players in the financial world will buy btc.

[mudiko]

Futures contracts are really great to build up a stronger market. Bitcoin would benefit from it and I am pretty sure that Bitcoin futures would have a decent volume. There is some hedge fund invested in Bitcoin which would love to hedge through bitcoin futures.

[thinair]

Don't Buy Bitcoin Now - At USD6000:
https://bitcointalk.org/index.php?topic=2349008.0

Establisment of any future markets always benefit certain players, usually the super rich. It is not a true futures market as long as there is no physical  settlement, but only designed for the speculators. Now the super rich could manipulate bitcoin prices for their profits. See the last post (above thread) on how a simple :"Buy fast Sell slow" strategy can make the super rich huge profits. This CME futures contract would be a great help to the top 1% in fooling the average bitcoin speculator/investor.

[edit]
Another note, the daily settlement price is determined by the CME. How? How if the market moves USD1000 a day.

[centralbanksequalsbombs]

The release of bitcoin futures that will be settled with no actual delivery of actual bitcoins may be the tool the central banks needed to subvert bitcoin into submission.  It may take a couple of years where things are fine and dandy for them to establish dominant volume at first, but once the dominance is established, manipulate and subvert.

[Ilegendph]

It looks like the banks  just want to make some easy money by selling futures instead of buying and selling bitcoins.Anyway,this is good news,because it proves that the bitcoin market is bigger and impossbile to manipulate.I`m sure that accepting bitcoin futures will have positive impact over the bitcoin price and more big players in the financial world will buy btc.

Yes it is, this move of banks makes only people who believes in bitcoin to be more confident in their investments in cryptocurrency. It seems banks now a days provides future value for the money of their clients that its look like insurance but if we analyze things we can conclude that what bank offers is less than to investment in cryptos.

[TagaMungkahi]

I am also thinking about this, maybe they will just use it for their own benefit like manipulating the prices on their own hand and generate profit out of bitcoin in the most easiest and most possible way, even though it helped bitcoin to rally up and touch a new highs, i'm still doubting their intentions whether it is for the mainstream adoption of bitcoin or for their own benefit for easier manipulation.

[btcone111]

I think it will add a lot of volatility to btc - at first there will be a huge bull run - then it might be followed by a bloodbath caused by futures margin calling.

[lobo13hf]

Futures contracts are really great to build up a stronger market. Bitcoin would benefit from it and I am pretty sure that Bitcoin futures would have a decent volume. There is some hedge fund invested in Bitcoin which would love to hedge through bitcoin futures.

Not sure about a lot of the benefits by issuing the futures contract of the bitcoin, We have seen a lot of the bankers will try to be speculated the bitcoin price. this would give affect to the bitcoin price and fundamentals. As i understand about the bankers will try to play in the crypto through the futures contract.

[zinok474]

Also NASDAQ is planing to introduce Bitcoin futures. This might have an influence because a lot of buyers will buy Bitcoin futures instead  of buying  Bitcoin and this means that some of the Bitcoin demand will go on futures, but futures will not stop the uptrend of Bitcoin (maybe will slowdown the price increasement). Will all the popularity that Bitcoin has now, with all the media coverage and with the demand that is increasing everyday was obvious that this day (of offering Bitcoin futures) will come.

[centralbanksequalsbombs]

Also NASDAQ is planing to introduce Bitcoin futures. This might have an influence because a lot of buyers will buy Bitcoin futures instead  of buying  Bitcoin and this means that some of the Bitcoin demand will go on futures, but futures will not stop the uptrend of Bitcoin (maybe will slowdown the price increasement). Will all the popularity that Bitcoin has now, with all the media coverage and with the demand that is increasing everyday was obvious that this day (of offering Bitcoin futures) will come.

Uh, ya, again i reiterate: The release of bitcoin futures that will be settled with no actual delivery of actual bitcoins may be the tool the central banks needed to subvert bitcoin into submission.  It may take a couple of years where things are fine and dandy for them to establish dominant volume at first, but once the dominance is established, manipulate and subvert.

[fiulpro]

The capital flow will be for sure good for bitcoins but the real deal is.. how that capital flow is regulated...if..the CME is looking for ahort term profits then it may sell large amount of bitcoins and buy..then at the same time without thinking and that will be purely regulated according to their moto of gaining just profit nothing else.. well it will for sure increase the volatility of bitcoins and then People will think twice before investing in it because nothing is nice if its that much volatile and unsure.. but if CME is planning the regulation for a long term goal then I think it might just do the trick... The market will be immensely profited but I don't think any group like CME will think about anything more than their profit thus It will be for sure harmful for the long run and great for the short term.

[Alns]

Why do you think that it is just a bank attack? I dont see it as a bad thing, in fact, when most of the brokers and all those major exchanges start operating with bitcoin, everybody is going to start trusting bitcoin a little bit more.

I dont know why most of you are panicking about that situation, a new exchange on Russia is going to start offering bitcoin futures soon, i saw that notice on reddit and it has been confirmed.

It is a good step for bitcoin, banks can not manipulate it because they are not buying those futures, and that is the main reason of why they can not.

[swaptaker]

Why do you think that it is just a bank attack? I dont see it as a bad thing, in fact, when most of the brokers and all those major exchanges start operating with bitcoin, everybody is going to start trusting bitcoin a little bit more.

I dont know why most of you are panicking about that situation, a new exchange on Russia is going to start offering bitcoin futures soon, i saw that notice on reddit and it has been confirmed.

It is a good step for bitcoin, banks can not manipulate it because they are not buying those futures, and that is the main reason of why they can not.

You're right but the idea of "future" is not suitable with bitcoin. Because its supply is limited and you can't have bitcoin virtually, you need to mine it directly or buy it. The idea of btc future breaks this.

[X-ray]

The chess match between the banks and Bitcoin just got real. CME Group, the world’s leading and most diverse derivatives marketplace, announced that it intends to launch bitcoin futures in the fourth quarter of 2017, pending all relevant regulatory review periods.

The new contract will be cash-settled, based on the CME CF Bitcoin Reference Rate (BRR) which serves as a once-a-day reference rate of the U.S. dollar price of bitcoin. Bitcoin futures will be listed on and subject to the rules of CME.

Bitcoin futures are explicitly not going to be settled in Bitcoins. They will be settled in dollars. This means that this contract is a means by which to use unlimited dollars to control the dollar price of Bitcoin.

Now we know why the SEC squashed all Bitcoin ETFs. It had nothing to do with liquidity, valuations or consumer protection. It had everything to do with creating synthetic bitcoins made of of dollars to be used by the big banks to dominate and control the valuation of the market.

Anyone who doesn’t believe me in saying that has never watched a minute’s worth of the gold trade.

This is how they control the gold price. They issue unlimited supply of paper gold, settled not in gold but in dollars, to keep the price in the range they believe it should be kept in over a particular period of time.

This is done to suit their needs, not the needs of the gold market participants, i.e. the mining companies, investors, end-users.

All markets are subject to manipulation. And when the manipulators are a protected class of bankers controlling the wealth of the society the possibility of institutionalized manipulation and fraud exists.

Understand that from an evolutionary biology perspective Bitcoin is a mutation which rises to the level of existential threat to central-bank-issued debt-based currency. Gold was put on the futures exchange when they finally realized they could do a better job controlling its price and the perception of the dollar’s strength better than refusing to allow a futures market for it at all.

Bitcoin is getting that same treatment.

Now, like the good little oligarchs that they are, they’re finally scared enough of Bitcoin and cryptocurrencies that they are going to cap their growth through good ol’ fashioned leverage and market manipulation.

Everything else has failed to stem the tide so now it’s time for this battle tactic to be employed.

When CME announced plans for Bitcoin Futures, an article titled Bitcoin dips a toe into the mainstream was published and I do agree to that, it is a big news, legitimacy. But instead of physical delivery, cash-settled contracts and that's a bit unnerving. Possible emergence of a secondary market that might suppress the primary free market. Flow of cash getting diverted to the secondary market. Natural vs artificial scarcity. The Bitcoin market might finally get stable and less volatile which is good, but the stability might be achieved by means of artificial scarcity, suppression, and manipulation by centralized players. In terms of recognition, a CFTC approved Bitcoin futures is definitely positive, but the long-term effect might not turn out to be a positive one.

The CFTC may or may not approve this proposal. If approved and a large capital flows into this market, in the long-term would it be good or bad for Bitcoin? Would the resulting stability and liquidity be good or bad?

https://hackernoon.com/bitcoin-futures-the-bank-attack-on-the-crypto-market-29e1b38a5da

As i'm seeing about the futures contract is not good as a lot of the people said. They are building in the largest banker's country. There will be a lot of the manipulation to the bitcoin. This mean if the bitcoin traders must never try to see the price of the future contracts. There will be no something flow into the crypto.
CME is bring a lot of the bad thing rather than good thing.
Even gold with a lot of supply controlled by the bank with its print money. 

[tomahawk9]

It's going to help to get rid of the "fraud/bubble" label that Bitcoin has received over the years, and Bitcoin Futures will also help to bring awareness to masses that will no longer have the fear to invest in Bitcoin. But everyone seems happy with this annoucement without realizing that we're pretty much letting the banks and govt have a tool surpress the price, manipulate the market and overall, control Bitcoin in the long-term.

The launch of BTC Futures doesn't guarantee that we're going to see a big spike in the price, on the contrary, it could hurt it. We need to remember that Bitcoin Futures will create an speculative market outside the original market, in this new market no actual Bitcoin will be traded, just futures, anyone buying Bitcoin Futures will have no exposure to actual Bitcoins, is this positive for Bitcoin? we'll find out soon. Also, the money going into Futures will never reach the Bitcoin market, it's going to the bankers, wall street and the big players, and without buying liquidity the btc market will get hurt. Also, btc futures will be settled in cash-only so this gives more reasons to keep the ponzo fiat alive for the elite to keep gaining profits.
We can only hope that this helps legitimize bitcoin by the federal agencies so that it finally gets worldwide adoption in the future.

[bitcoinmaniac52]

The reason banks want futures is because there is so little liquidity in crypto right now. There isn't a clear way to actually sell of tons of coins at once. You would need to have a verified account on literally every exchange out there to cashout millions upon millions of dollars. Bitfinex said they have $450,000,000 or so in reserves, well what happens when someone who bought 10k BTCs back in the day decides they want to cash out? That is like 35% of their reserves gone from one person.

[0bit]

I don't necessarily see this as a bad thing. The biggest reason why I see this being a good thing is because large and reputable organizations like CME and NASDAQ looking to offer Bitcoin futures contracts lends Bitcoin lots of legitimacy, which is something it needs in order to ultimately be adapted by regular folks. Most people stay away from Bitcoin because they blindly listened to the news media when they painted Bitcoin as a scam used by the criminal underworld to finance "terrorism" or whatever the threat they chose that week was (The best way to grab people's attention is to make them afraid). The offering of these futures contracts could change that perception. Let's be honest: a huge part of Bitcoin's existence is speculative trading. CME and NASDAQ probably see this as an opportunity for them to make money, and probably aren't doing this out of some contrived plan to control and destroy Bitcoin. They'd be wiser to profit off of it's existence rather than "attack" it.