it’s Here! US Regulators Approve Bitcoin Futures To Start In December

[Kargai]

If you ask yourself why the BTC price rise lately, one of the reason is here.

It was announced since few weeks (https://forum.stake.com/topic/2036-derivatives-giant-cme-group-to-launch-bitcoin-futures-contract/?tab=comments#comment-28665) but now it's official : Bitcoin futures from CME Group and CBOE will “begin by year end,” US regulators have said as they give trading the official green light Friday.

So now it's official, people will can buy paper contracts without the need to really own any BTC. Seem weird

The rest of the story : http://bitcoinist.com/us-regulators-approve-bitcoin-futures/

 

[Snike]

Uiuiui that sounds like even more rising up of the btc. If I understood it right

[Shaniqua]

3 minutes ago, Snike said:

Uiuiui that sounds like even more rising up of the btc. If I understood it right

lol i ddont think i did understand it right =P

[Kargai]

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Interesting. What advantages does the paper contract give someone, over say, just purchasing the bitcoin outright?

For lot of people the advantage will be that they don't have to put their hands on it. No need to understand the technology, buy BTC online, using a wallet, ... they will don't have to know what a BTC is, just look at some graphics and buy/sell contract.

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If someone owns a paper contract, aren't these contracts stored by the banks that issue them?

Probably yes. There will be alos some broker dedicated only to cryptos.

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In which case I think this is terrible from the buyer point of view as they are missing out on the main advantage of the currency which is owning their own currency and being in control of it.

But I'm likely missing something... What's the point of these paper contracts? Is it to do with limiting risk, that they will only be allowed to lose or gain a certain % no matter what bitcoin does? I read something about that the other week too... but it's all getting a little confusing lol. 

 

Same thing as Gold or Silver right now. Bankers and brokers will sell the advantages without mentionning too much the inconvenients. For precious metals they say that the problem with owning them VS paper contracts is that you can loose them, being rob, damage them, that it take some place, ... and if you put them in a vault at the bank it will have an extra-cost, etc. What they never say is that there is 100x the existing amount of physicial Gold bought in paper contracts. So if everyone want to recover his own Gold ... less than 1% will really receive it.

Same will go for BTC. Only 21 millions available ? No problem for paper contracts, you can sell 2 billions BTC if you want since the buyers don't have to have them in their possession. Free money for brokers & co. It will be just "promises" of BTC. 

Seem crazy ? yes but it's what happen with Gold for decades. People are still willing to invest in a simple paper and not owning the pgysical gold in their hands.

[remember]

you mean we can see higher prize of btc in future like over 20k ? any business has risk  but more risk more profitable

1 hour ago, Han2x said:

So the future of BTC starts this month? I guess not. It already started the past months. But I guess it will be more brighter future since it's now included in CME. In my opinion it will make BTC grow more. As what I have read in CME's page: CME Group's product and services ensure that businesses around the world can effectively manage risk and achieve growth. 

 

 

[Kargai]

People just blindly trust banks & co. 

Right now (at least in France) you can't withdraw all your FIAT money at once at the bank, people don't even know that. If you have let's say 75.000 €, you just can't take them all there is some maximum limit. Even if you do that by speaking with a banker directly inside the bank (so i'm not talking about the ATM limitation or else). Why? Because they don't have money for everyone. But people blindly believe that their money is safe with the bank and that they'll just have to ask the bank when they will need it.

I bought real Gold & Silver by the past, physical one, and my bank really put me brakes on it : trying to sell their own paper contracts, not allowing me more than a certain amount to pay gold seller, not sending my transfer enough time for the seller cancelling the transaction, ...