Important information to the small investor community concerning futures

in #bitcoin7 years ago

Hello everyone,

I used to be a day trader and believe the following sentiment is severely underrepresented within the bitcoin community dialogue and should be exposed in much more depth since it will have a large impact on a budding small investor community. The nice thing about this realization which I have observed in a few commentors on reddit and finance websites is that it is completely neutral to any optimism/pessimism in the future price of bitcoin, from my experience the real manipulation begins with the introduction of futures and it will result in a tearing of the community (divide and conquer) over time, unreleated to price gains or losses.

On the topic of futures trading as one commenter accurately predicts:

Yeah I'm not buying anything other than neferious intent. Futures are used extensively to manipulate precious metals which is why Bitcoin has succeeded so well as people seek an alternate safe haven.
Oil prices are also extensively manipulated. As is Iron ore. Any commodity with global ramifications is manipulated.
If they own the printing press and have the desire, they will most likely play with Bitcoin prices repeatedly over years to get their desired result. These futures give them control. It doesn't matter whether that control is small, any control is what they are seeking.
What they will aim to do is manipulate sentiment. Emotional sentiment. They could for example cap a price rise during a bull market by selling against it. Weak hands then sell, the establishment then buy back in at a discount.
Using leverage they will push prices either way to incite either fear or greed and play ahead to profit each way. Slowly cornering the market.
I'm disappointed that there is so little said about this, but then most guys in precious metals that understand the game are still stuck holding precious metals... All these new Bitcoin investors haven't been there and are much more 'tech' oriented and know little about finance/economics or even establishment geopolitics.

http://kiddynamitesworld.com/lets-talk-arbitrage-bitcoin-futures-edition/

I have a very tiny amount of bitcoin myself and researched whether or not to enter the market with much more capital before the end of the year, but this discovery makes me very reluctant due to earlier experience with wall street. A small investor should not underestimate the psychological warfare that this institution is capable of.

Bitcoin is about to be usurped by very powerful entities with a long history of global wealth management, and the bitcoin community is primed for manipulation according to simple psychological principles that no amount of sophisticated tech can protect you from. I don't have a solution to this dilemma yet but I will study it and I think real discussion and awareness is appropriate.

For those long term investors who buy using dollar averaging this does not apply, however my personal view of bitcoin only apply to medium term, long term it is likely that something with great utility to society will replace fiat within the next 5 to 10 years.

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