FUD From All Sides: In Defense of CME's Bitcoin Futures Plan

[bbc.reporter]

This essay is a counter argument of the previous bearish ones that I have posted last week. Read it and see if you share his opinion or not.

I also saw that some of the readers in the forum were angry at me for posting them. Please understand that all of us have our own opinions. I am on the bearish side when it comes to the CME group's listing of a bitcoin futures derivative, but not because I hate the idea, it is because I do not trust them.



I'm a member of the Chicago Mercantile Exchange. I've also been a bitcoiner since 2013. So, when CME Group announced its intention to launch bitcoin futures in the coming weeks, I thought, "Great! Way to go, CME."

The first exchange to offer a futures contract on bitcoin is good news for my CME friends: more trading volume and and speculative opportunities. And it's also good for my bitcoin friends: the legitimacy and access is sure to help with adoption and higher bitcoin prices. Win-win! Right?

Well, that wasn't quite the response I got.

Instead I heard just about every negative stereotype about both futures trading and bitcoin, from both communities. Let's try to put these misperceptions to rest.

Read more https://www.coindesk.com/fud-sides-defense-cmes-bitcoin-futures-plan/

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[Torque]

Well if the author is being honest and truly believes what he is writing, then this passage really made my year:

Overwhelming demand

When Terry Duffy, CME's CEO, says it's offering bitcoin futures in response to customer demand, I'm sure he’s right.

I know from writing brochures for commodity trading advisors that money managers want non-correlated assets. That's the only reason they own gold.

When the stock market tanks or a terrorist attack happens, that's when gold rallies. After 9/11, the stock market dropped over 7 percent, but gold spiked.

Bitcoin, like gold, is a perfect non-correlated asset to add to an investment portfolio. I am not surprised that there is such overwhelming demand for bitcoin futures from traders. Now, every trader is going to have the option to invest right there on their screen without having to do the onerous work of buying and securing bitcoin itself.

What that essentially answers then is what is on a LOT of Bitcoiner's minds like myself: Will Bitcoin be treated like an equity or like a hedge asset (i.e., Gold, Silver, etc.) during another market shock?  Sounds like the latter.

[MickeyT2008]

I also think that all this thing from the CME and all this problem with the futures is a HUGE mess, i dont even know why they are trying to add it to their exchanges, it is insane, and it is a very BIG move, and could make a huge chaos in the whole economic system (of cryptos, of course)
If he means this seriously, then he has a big problem to disguise about real investments and digital investments, what is the point with this? he is saying that bitcoin can be easily compared with gold/silver and that is not true, bitcoin is super volatile, and maybe it is very profitable for many of us, but it can not be compared to a "no-correlated asset"

Bitcoin, like gold, is a perfect non-correlated asset to add to an investment portfolio.