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by empath75 3112 days ago
I think all the bitcoin fans making this out to be a big deal is kind of funny. The volume of futures exchanges shits on any of the fly-by-night bitcoin exchanges. Professional traders don’t google CBOE to look at marketing material, lol.
1 comments
adsfasdf2332 3112 days ago
I think the consensus in the bitcoin community is that it won't have any effect and Bitcoin will continue chugging along as it has.

It was mainly the bears saying the futures would increase shorts on bitcoin.

Can't imagine anyone in their right mind would short bitcoin right now though...

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Xixi 3112 days ago
Futures were initially invented for hedging: imagine you own 1000 BTC and for any reason (liquidating, etc.) you don't want to make any P&L (profit and loss) on these => you sell futures contracts for 1000 BTC. What you gain on one side you lose on the other, so your P&L will be 0 (minus fees, you can think of these as a sort of insurance).

This is useful for instance for a fund that needs to neutralize its positions while closing them over a span of several days/weeks. If you expect a future payment in BTC and don't want to expose yourself to the risk that Bitcoin will crash: you short the equivalent amount in futures.

Because futures contracts are (usually) much more liquid that actual assets, they are very useful to short whenever you have the actual asset in your books and don't want to expose yourself to the risk of it losing value.

Not sure if I'm explaining all this very clearly...

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freeone3000 3111 days ago
The futures contract seems to be less liquid than bitcoin, though - you still have to trade it, and there's fewer buyers.
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GhostVII 3112 days ago
> Can't imagine anyone in their right mind would short bitcoin right now though...

Why not? I can't believe anyone in their right mind would significantly invest in Bitcoin right now.

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JumpCrisscross 3112 days ago
One can simultaneously believe something is neither worth buying nor shorting. In this case, Bitcoin’s volatility and meteoric rise make predicting the timing of its crash risky.
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namelost 3112 days ago
That doesn't mean you should short it. Bitcoin is casually up 6% today, in recent history it has had daily gains in excess of 20%. It can rise by multiple percent in a few minutes.

You would have to be completely nuts to short it, regardless of what you think it is going to do in the medium-term.

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lallysingh 3112 days ago
With this kind of volatility, you can do pretty well market making.
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