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
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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.