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RE: Why I think Bitcoin Futures are the key to several major retailers accepting Bitcoin
why wouldnt they just use payment processors like Graft or Utrust? Seem like a lot less of a pain to me. Still not very known, but these should be better for hedging (instant and lower cost) than futures. And retailers wouldnt have to connect to the futures exchanges (saving resources and time)
They dont have to always be connected with Future exchanges.
What happens is that big retailers might, for example, buy an certain amount of BTC Future contracts with one month expiration date, lets say 10 BTC, and no matter what Will be price of BTC at the expiration date Will be worth the same amount in dollars.
That way, they can accept 10 BTC for 1 month without worrying about the price.
but they DON'T. buy ANY bitcoin to back up the futures contracts because they are not really futures contracts they speculative BETS on the PRICE of BITCOIN and not on BITCOIN it's self
Technically true but the futures contract tracks the price of bitcoin. So what's your point
two of the keys to value is scarcity and usability The Faux futures add nothing to either and perpetuate the illusion of the Debt Fiat system. The bigger point is, they are contracts that contain NOTHING. Yes they track value but they do not change value, neither do they help spread the real USE of bitcoin. ALSO the delude those of us who actually believe in crypto into makeing decisions based on futures contracts that are not really contracts for ANYTHING. Folks selling their bitcoin because they see the futures contract constricting, when the fact is the futures contract is constricting either manipulatively to push down the price of REAL Bitcoin or to PUMP it up so they can WALE SALE. It is all NOT GOOD unless you can take, or at least potentially take posession. The market can then base trade value on supply and demand and not gambling speculation .. ANYWAYS.. :-)
Future contracts are not only about speculation.
The main reason of an Future contract is to hedge risk.
And with BTC it works the same way with other commodities.
For an example, Oil are negotiated on an open market, and it is a product that have lots of uses.
An company like an airline that have to buy a huge amount of oil uses Future contracts to lock the price of the oil it is buying.
That way, no matter what will be the price of the Oil on the Future, the cost for the company is already defined, so it brings stability on the costs of operations.
The same can work on the future with BTC.
Retailers may acquire future contracts to protect themselves agains the price volatility of the BTC.
They mey acquire a 10 BTC future contract with an expiration date for 1 month, and that way, they can receive 10 BTC without worrying if the price will be higher or lower 1 month later.
Future contracts doesn't trade BTCs, but they add a way to counter the volatility.
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Graft and Utrust are not that established yet. A big retailer will either build it in-house or go with a more established crypto payment processor.
BTC futures currently are only for 1 and 5 btc increments; e.g. large-scale hedging.
Bitcoin Futures do not exist. There are no bitcoins to be owned in a faux bitcoin futures contract for any amount. It is a BET on the price of Bitcoins on exchanges not in contracts. it is all a scam. I would be glad to get involved in a real futures contract where I could speculate on the price of bitcoin in the future and then force settlement by taking possession but that is not available.
Watch the exchanges and see at the time of "settlement" if there are any purchases that match the contracts. There are none. it is a pure speculation BET on the price of something in the future and not on the actual ITEM in the future.
Bitcoin futures obviously do exist but they are cash-settled. If you saw my previous posts than you'd have known that is precisely why bitcoin and crypto etfs are much bigger.
And yes had we realized that there was difference on price impact between cash-settled and underlying commodity-settled futures than we'd all have sat out the last hype cycle
It is a bait and switch. Read the details, cash settled bets not bits. There are no underlying actual assets in the product because there is no product in the true Futures reality.
That's why the products from Greyscale and the like for physical index funds/ETF's would be huge if approved for everyone and not just for accredited investors.
Keep in mind that even physically-settled futures can be heavily manipulated--check out gold and suspected price suppression by the central banks/big banks.