The effect of short CME Futures contracts on the price of bitcoin.

[Cuddles]

I don't know much about futures but wonder if this article has any legs? It read somewhat reasonable. I'm not saying this is the cause, just wonder if the argument is sound.

http://genesisblocknews.com/the-bit...finitely-the-reason-for-bitcoins-price-crash/

 

[Metamega]

Interesting article.

https://www.google.ca/amp/s/www.cnb...r-bitcoin-price-was-propped-up-illegally.html

Read this one recently. I never touched this stuff. I just don’t understand the idea of having a currency that requires a crap ton of power to process, and then having a currency that’s so volatile. I’d ditch my CAD dollars if it ranged 10% a day or more compared to the rest of the globes currency.

 

[Palindrome]

I'm about to launch my own Crypto. It will be called Noodle, and they are colored purple.

Each Noodle is worth $1.

I'm distributing 500million Noodles soon, in exchange for $500,000,000.

1 Noodle is expected to be worth $4,000 in 6 months.

Does anyone want to buy a Noodle from me?

(there is a place for Crypto's....but largely a complete scam)




.

 

[Overnight]

I don't know much about futures but wonder if this article has any legs? It read somewhat reasonable. I'm not saying this is the cause, just wonder if the argument is sound.

http://genesisblocknews.com/the-bit...finitely-the-reason-for-bitcoins-price-crash/

The fundamentals drive the futures. That is, the FUNDAMENTAL OUTLOOK for the coin is what drives the future price. It is not the other way around, in any market. If Bitcoin had any legs and the coin had value and base bitcoin traders saw that value and kept buying the coin, the futures would be going up as well.

When the base holders of the underlying start showing weakness in their belief of the thing to keep gaining value, the futures respond by shorting the future. If the basic fundamental holders suddenly start buying because they now believe in it, the futures will respond accordingly.

I feel the addition of a future on the coin has zero effect on the price of the coin. In my mind, the reason for the bitcoin crash is because bitcoin has only the value assigned to it, which is based on nothingness. That is not a good baseline to start from.

 

[Overnight]

...I’d ditch my CAD dollars if it ranged 10% a day or more compared to the rest of the globes currency.

Fukin' A right there. If at 8AM I went to a car dealer and said "Hey, I'd like to buy your car for your bitcoin price of 10,000..." As we haggle over the price for 5 hours... I don't want to hear the dealer say at 1 PM that because it is a crypto, and the price was 10,000 then, the car price is now DOUBLE at 20,000, because the value of my currency just halved.

Am I the only one who sees that instability in currency value is bad, or should I just go to bed because I do not know anything logical? I am not snorting the magical pixie dust and this will all work out in the end? WTF.

 

[Cuddles]

The fundamentals drive the futures. That is, the FUNDAMENTAL OUTLOOK for the coin is what drives the future price. It is not the other way around, in any market. If Bitcoin had any legs and the coin had value and base bitcoin traders saw that value and kept buying the coin, the futures would be going up as well.

When the base holders of the underlying start showing weakness in their belief of the thing to keep gaining value, the futures respond by shorting the future. If the basic fundamental holders suddenly start buying because they now believe in it, the futures will respond accordingly.

I feel the addition of a future on the coin has zero effect on the price of the coin. In my mind, the reason for the bitcoin crash is because bitcoin has only the value assigned to it, which is based on nothingness. That is not a good baseline to start from.

Well, I get that, however, I do wonder if the shorter's momentum was not accelerated by having these paper bitcoins and not have to risk taking delivery of the coins. I guess I'm wondering if these paper futures are common in other markets and/or if it would be detrimental if allowed.

I suppose outside of forex, everything is paper?

 

[Cuddles]

Interesting article.

https://www.google.ca/amp/s/www.cnb...r-bitcoin-price-was-propped-up-illegally.html

Read this one recently. I never touched this stuff. I just don’t understand the idea of having a currency that requires a crap ton of power to process, and then having a currency that’s so volatile. I’d ditch my CAD dollars if it ranged 10% a day or more compared to the rest of the globes currency.

That's old news, I think the consensus was that the tether cap was way to low to drive the price during the pump.....something like 10% at most I think

 

[Overnight]

Well, I get that, however, I do wonder if the shorter's momentum was not accelerated by having these paper bitcoins and not have to risk taking delivery of the coins. I guess I'm wondering if these paper futures are common in other markets and/or if it would be detrimental if allowed.

Well, here's the thing...They are not paper coins...They are agreements to buy or sell the actual paper coins which is what bitcoins are. Hehe.

Without getting into any real detail, the futures are just a promise to buy or sell a coin at a certain price by the expiration date of the future. What happens in between is immaterial. It is all up to you fundamental holders to determine where the price will go. In the most basic basic sense.

 

[Overnight]

I'm about to launch my own Crypto. It will be called Noodle, and they are colored purple.

Each Noodle is worth $1.

I'm distributing 500million Noodles soon, in exchange for $500,000,000.

1 Noodle is expected to be worth $4,000 in 6 months.

Does anyone want to buy a Noodle from me?

(there is a place for Crypto's....but largely a complete scam)




.

 

[Cuddles]

Well, here's the thing...They are not paper coins...They are agreements to buy or sell the actual paper coins which is what bitcoins are. Hehe.

Without getting into any real detail, the futures are just a promise to buy or sell a coin at a certain price by the expiration date of the future. What happens in between is immaterial. It is all up to you fundamental holders to determine where the price will go. In the most basic basic sense.

Yeah, that's my understanding of a futures contract, it read like the guy was talking about something else.....I guess his expectation was for bitcoin to trade like forex?