Noob here with a burning question:
Back when Bitcoin Futures were announced, everyone anticipated them being paid out in Bitcoin, and that the prices for bitcoin would skyrocket as a result. We eventually learned that the futures contracts are all cash settled, and seem to have had little effect on the price of bitcoin (if anything, its been a big steady decline since the contracts were released).
Q. people are speculating right now that because so many alt coin projects are built on the ETH/NEO foundations that ETH/NEO will rise in the coming year as well. Do we know if the success of any these alt coins will actually have an impact on the price of ETH/NEO? Or are we just assuming like the Bitcoin Futures contracts?
Thanks for the help!
A comparison of the effect of Bitcoin futures with Ethereum or NEO is a bit misleading. Investors buy to see the price higher than they entered. What drives the price higher? Demand. Bitcoin futures do not increase demand for Bitcoins on OTC market (or at least not significantly) therefore do not push the price higher technically.
On the other hand, if anybody wants to participate in ICO, they must first buy ETH or NEO. Larger demand produces higher price. That is why I find more upside potential in ETH/NEO than in Bitcoin for 2018.