Who: Chicago Board of Exchange
What: Bitcoin Futures
When: December 11, 2017
Why: This will allow market participants to have another way to bet on Bitcoin.
Last month I highlighted that a Goldman Sachs analyst predicted Bitcoin could hit $7,941 and boy did he nail it! Am I the hater here, the old man sitting on his porch shouting get off my lawn? “Everyone is doing it” and Bitcoin surged again when futures trading opened for the cryptocurrency. For those of you who do not know what a futures contract is check out this link here.
I believe having the name of the CBOE behind these Bitcoin futures contracts will cause the price of bitcoin to be even more volatile in the future. This will just give speculators a way to bet bigger and not be forced to hold the actual underlying crypto. With Bitcoin futures contracts each day the parties involved will mark-to-market their positions and someone will have won the day while the other will lose. The guaranteed winner in this scenario is the exchanges. They are the MVP’s moving in on this market to churn a big profit off the Bitcoin craze.
Personally, I will still be staying away. If any of you out there have turned a big profit from the Bitcoin madness kudos to you. No way can I be mad at anyone for making a big bet and cashing in that’s what makes America so great! My only advice would be not to get caught up in the excitement and limit your trading of crypto to only what you can afford to lose. Keep making money and making the naysayers like me look dumb!
What Are Your Thoughts?
- Anyone going to trade these futures?
- Do you think this will boost the price of Bitcoin or have no effect?
- How much money do you think market makers will make during this craze?