How could futures impact bitcoin?

[CryptoKyddie]

IMHO not much. The futures is just like gambling for adults. You are betting price of BTC will increase or decrease. If you get it right you make money, if not, you lose money.

[1713277826]

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[pawanjain]

In order to know what are the impacts of Futures trading on Bitcoin you have to first know how it actually works. You can learn about it on youtube. Fututres trading means trading on the future price of any asset. So the people will be betting on the future price of BTC.
The impact of Futures can be both positive and negative on Bitcoin depending on the trend that follows on the futures trading. If the people are betting against the price fall then the price might actually fall and the same could happen in opposite direction. Seeing the futures value people could tend to buy/sell BTC according to the price.

[Sendah]

Futures impact in bitcoin? If you buy today and just hold it for a year i think your future will become a better future, i know bitcoin will be increase more than a year so its better to hold now.

[ultrloa]

Futures impact in bitcoin? If you buy today and just hold it for a year i think your future will become a better future, i know bitcoin will be increase more than a year so its better to hold now.

But actually not only the hodling can give a huge impact on the future of bitcoins since there are somethings that needed to do before bitcoins gain success and it need to circulate so that the bitcoin economy will became more healthier, And holding for long term basis is just for richman since they can generate more funds for theirselves and can just freeze their bitcoin wealth for long time, and low holders cannot do that so I advice that it's better to use the half and let the other half circulate to earn more bitcoins, and that could make the low holders earn more bits to became big holders on future.

[kryptqnick]

I don't fully understand the Futures market.
How could futures impact bitcoin and its price?

Here's the deal with these futures. You don't actually hold any bitcoin on your own, but you do own some sort of financial instrument given by the CBOE, and it states that they hold bitcoin on the investor's behalf not precisely but somewhat like that. This derivatives is only to be paid in cash and it'll affect the price is institutional buyers would love to influence the price on their own, and this could be a big deal later on.

What is also important about futures is that the prices are decided in advance. While you sign a contract you agree that on a certain date you will be ready to sell or buy bitcoin at a certain price. That's why some believe bitcoin is in danger of its price being manipulated by the whales, as the price is agreed upon regardless to what will actually happen in the future and what demand will be for bitcoin at that time.

Futures impact in bitcoin? If you buy today and just hold it for a year i think your future will become a better future, i know bitcoin will be increase more than a year so its better to hold now.

No, you misunderstood the question, I believe. It is about the futures contracts on CME. Yet surely your advice is probably great, for it's a pretty safe and easy way to earn some money.

[snkneo]

I don't fully understand the Futures market.
How could futures impact bitcoin and its price?

Here's the deal with these futures. You don't actually hold any bitcoin on your own, but you do own some sort of financial instrument given by the CBOE, and it states that they hold bitcoin on the investor's behalf not precisely but somewhat like that. This derivatives is only to be paid in cash and it'll affect the price is institutional buyers would love to influence the price on their own, and this could be a big deal later on.

I'm still sort of new to these things, but why would people buy these futures, instead of simply buying Bitcoins instead? Not pay any middleman. I hate the concept.

Also, isn't that like gambling?

[MIZANUR5033]

Bitcoin is a very comfortable crypto for it’s users. There are many altcoins in cryptocurrency but bitcoin holds that’s top position since the start till now. World is digitalizing day by day and many other crypto growing up so it is very hard to say about the future of any crypto but bitcoin is so much advanced than other.
We can’t say properly about its future because it changes its value very quickly and no one knows that will increase or lower. If it gives more benefit then people will consent more into it and it will go ahead. All of things depends on its value, benefit and peoples mind.

[resty]

I don't fully understand the Futures market.
How could futures impact bitcoin and its price?

Future is a great OPPORTUNITY to bitcoin. It is like embracing the bitcoin while time goes by. Technological advancement are continuously taking place and with the help of internet everything is easily to access. The time comes where all of the mall will accept bitcoin as their payment and every transaction is very fast.

[braveheart]

Great responses. Thanks.

I will need to investigate further to get my head around it.
But, if this is people basically betting on the price in the future, then they are not really influencing the price, unless of course they are betting and also buying HUGE amounts of bitcoin, creating an artificial scarcity, driving the price up.
OR by dumping a huge amount on the market, possibly driving the price down.

Does that sound like I'm in the right ball park?

[Sweeet123]

The main thing that can impact bitcoins is the demand for it, if the demand reduces then bitcoins might become obsolete,apart from that government policies and regulation can aslo impact bitcoins, if government decides to impose taxes on bitcoins, this could hugely impact the future of bitcoins

[pinkflower]

I don't fully understand the Futures market.
How could futures impact bitcoin and its price?

This derivatives is only to be paid in cash and it'll affect the price is institutional buyers would love to influence the price on their own, and this could be a big deal later on.

Wrong. To influence the price of BTC, the institutional traders, not just buyers because they also sell, would have to buy real BTC. This is counterproductive if they also trade BTC futures. The futures market is maybe only good as a hedge to lessen risk for institutional investors who already hold BTC.

What do you mean by real BTC? there is no fake BITCOIN, lol, only real ones exist. The market of the cryptocurrencies and the market that we have in the real world is going to adopt bitcoin for sure in the near future, once they have realized what bitcoin really could do and what it could help them to make this society develop into something better, bitcoin is the future.

I know you know what I already mean. But if you didnt know trading futures contracts are not the same as holding BTC. Thats why I said REAL BTC because some of our fellow forumites doesnt care about the difference between a futures market and a cryptocurrency market like Poloniex.

[mx667]

The main thing that can impact bitcoins is the demand for it, if the demand reduces then bitcoins might become obsolete,apart from that government policies and regulation can aslo impact bitcoins, if government decides to impose taxes on bitcoins, this could hugely impact the future of bitcoins

Yes that's true, but I do not think the government can easily block Bitcoin. That's the same as we try to block various sites on the internet. There will always be loopholes and will always appear new sites. People will always find ways to get what they want. In my opinion, in the future there will be many people who are looking for Bitcoin. That will affect and increase the price of Bitcoin. The more people look for Bitcoin, the more Bitcoins will become scarce. And also, there will be many people who become rich because it already has Bitcoin, including me hahaha.

[ofeefee]

Currently they don't have almost any impact. I just read a article with possible explanation:

https://www.cnbc.com/amp/2017/12/15/bitcoin-futures-are-about-to-get-another-big-boost.html

In short:

"Here's the bad news: volume in the Cboe contract has been very small. On average, roughly $60 million in notional value has traded each day.

In just the last 24 hours, about a half-million bitcoins alone have changed hands. At $17,000 per bitcoin, that is about $8.5 billion.

Get it? $60 million vs. $8.5 billion."

Because most traders/miners/whales are outside US.

But situation can always change, so I'm watching it closely.

[cpfreeplz]

If futures get bigger in the future I would expect big swings just like we've seen recently. It's only going to make things even more speculative than they already are right now.

[jayhawk1]

Futures impact in bitcoin? If you buy today and just hold it for a year i think your future will become a better future, i know bitcoin will be increase more than a year so its better to hold now.

Yes I think if you want to see how your future will be and bitcoins would impact on your future life, then surely you need to hold bitcoins and see after a year. This will give you results of a near future and just relate it to some extra years of holding.

Bitcoins are so incredible that they don’t take much time to change a person’s life if he is willing to consider a turn in his financial health.

[nebuch]

I guess the impact will be the BIG CHANGE.
Why.? Change in every business payment. Change in everything involves in money. Change is everywhere. Schools payment, pair, payphone, foods, dress, food chains, sports, markets, hospitals, every payment.
It will be a revolution of CHANGE. The world of crypto is coming soon. just watch and listen. The BIG CHANGE is soon. Btc is coming to change the world. Be ready and alert. Change is the impact.

[eekkaa]

I don't fully understand the Futures market.
How could futures impact bitcoin and its price?

the impact of bitcoin we can use money more easily when buying something goods without issuing banknotes because only with smartphones we can use the balance bitcoin connected in our smartphone and we can get the goods we want.

[braveheart]

There would be a dual market, futures and Bitcoin market, might be interdependent or independent. Cash-settled Bitcoin futures would allow Bitcoin skeptics/institutional investors to bet against Bitcoin without even buying it or there is a possibility that these investors will want to suppress the price so they can buy Bitcoin at a discount, either way this would lead to a new price discovery mechanism.

Just read an article on, will the futures market do to Bitcoin what it did to gold?

1: The velocity of information is orders of magnitude faster — I doubt most market participants in 1975 even knew that gold futures were a thing.

2: The Demand to hold Bitcoin is one of the highest of any assets ever — Bitcoiners have learned to buy the dip and hodl.

3: Bitcoin has more competitors than gold.

https://medium.com/swlh/will-the-futures-market-do-to-bitcoin-what-it-did-to-gold-b7d35704641

Interesting article.

[JTEN18]

I don't fully understand the Futures market.
How could futures impact bitcoin and its price?

the impact of bitcoin we can use money more easily when buying something goods without issuing banknotes because only with smartphones we can use the balance bitcoin connected in our smartphone and we can get the goods we want.

We can easily buy things we want as easy as buying though cash, but the impact is bitcoin will have a high fee for every transaction as bitcoin price increases. With that other persons will just hold it instead of using it for investing, with that bitcoin will truly get high more that we are expecting, and we can't afford anymore to buy it.

[braveheart]

I forgot to add that there was also a link in that article to this
https://medium.com/swlh/the-5-minute-guide-to-bitcoin-futures-804a4935b583

Also worth a read.