According to CNBC and the WSJ, Nasdaq has plans to launch bitcoin futures as early as the second quarter of 2018. Nasdaq isn't the only market maker looking to launch a product around BTC, they will be up against fierce competition by the CBOE and the CME who have also announced plans to launch futures tied to Bitcoin.
A Nasdaq spokesperson said that the exchange's futures would differentiate from CBOE and CME because Nasdaq would base its price off of 50 bitcoin sources from around the world, while CBOE is currently using one and the CME is using four.
Although I don't feel like Nasdaq's approach is groundbreaking, I do believe because of their superior method and brand recognition it may put the other two firms at a disadvantage.
One issue facing bitcoin products is the issue of what happens if there is a "hard fork," i.e. what happens if bitcoin splits into competing products. Nasdaq said that both sides of the fork would go in the index for one day, and after that the value of the other fork would be reinvested in bitcoin and the value of the index would be adjusted.
This is pretty much what modern day stock markets do. They create new products which peg to certain events. This is pretty much the same phenomenon which caused the great housing bubble crash in 2008. Its a slippery slope I say!
So, for example, if bitcoin at $11,000 split into two forks of $9,000 and $2.000, both would remain in the index for a day, and then the $2,000 fork would be reinvested in the $9,000 bitcoin and the index would be adjusted.
Bitcoin broke above $11,000 for the first time Wednesday and is up more than 1,000 percent in 2017.The Wall Street Journal first reported the Nasdaq futures launch. The Journal also reported that Cantor Fitzgerald is working to launch a bitcoin derivative next year.
Bitcoin started a whole new industry consisting of a whole array of different cryptocurrencies. Regardless of what happens to Bitcoin, the industry is here to stay. There's no putting the genie back in the lamp. Futures and derivitives may ultimately destroy Bitcoin but original believers of Bitcoin, people who appreciated it as an alternative to modern banking will certainly find another more suitable currency to invest their money into that more closely follows Satoshi Nakamoto's vision of a trustless decentralized economy.
What do you guys think about this news? Is Nasdaq getting involved a good thing for Bitcoin and the cryptocurrency industry?
Please leave thoughts and feedback below.
Thanks for dropping by @techblogger
Source:
Nasdaq to launch bitcoin futures in the second half of the year, officials say - CNBC
There comes the big money
Bitcoin seems to have a big future. It's becoming more widely accepted.
Now that the bankers are involved they will do their best to ripe owners of bitcoin. They will crash it to the ground and grab as much of it as they can and then let the demand pull it back up and collect dividends. They have done this with stocks, oil, and gold. Not going to surprise me that once they get publicly involved they will make price of bitcoin go down for their own good.
Since they are a technology company listing mostly tech stocks, NASDAQ should have been the first to allow bitcoin futures rather than CME.
hope that dosent affect the characteristics of bitcoin in any way . by characteristics i mean its unique features.
Well, I think if you look into Segwit and the Lightning Network you'll see today's Bitcoin is very different from the original BTC of a year ago...
I think segwit and lightening network actually maintain the integrity of the original Bitcoin vision. They are off-chain additions that leave the Bitcoin core untouched. The on-chain changes and evolution of other blockchains is a risk with those of security vulnerabilities and lose of vision
Here's a video that might make you change your mind. I'm not a big fan of BCH but I know why it was created (to keep Satoshi's dream more intact..) :
Thanks for sharing this about the possible nefarious agenda behind the Lightning Network. But something that wasn't clear to me...why will the transactions fees be prohibitive to getting coins back out of the Lightning Network? Transactions fees will be an overhead to transacting Bitcoin in general and this doesn't impact you much of you're using Bitcoin as a store of value i.e. Not all Bitcoin will go on the LN for Blockstream's plan to work out
It's like traditional finances are going through the 5 stages of grief. Here comes acceptance! Thanks for your brilliant article.
I'm still undecided on what to think of these futures markets. No money will actually be entering crypto, yet they will have a very influential effect on the price of crypto..
But long term it does mean regulated adoption may be coming which is of course a great thing.
Good read! I think big institutions coming into Bitcoin will try to manipulate the market and essentially look to act to the detriment of the network. This is because ultimately, Bitcoin is the biggest death threat to the current financial system. Of course, like you said, there is no putting back genie into the bottle...
Dont worry be happy. All coins going to the moon
They can't manipulate it like gold.
https://steemit.com/bitcoin/@ni-co/how-do-bitcoin-futures-influence-the-price-of-btc
Will the launching of bitcoin futures lower the price or bitcoin or will it give more bullish to bitcoin? thanks
It's going to be hard for them to manage the future contract long term with no deliverable, imo. We might even see it implode, which could end up working out really well for bitcoin. I read that their whole reason for creating the future was to control price and stabilize the market. They obviously misunderstand what bitcoin is at it's core... will see what happens in a couple weeks!
Bitcoin future is used for hedging in case of there is a crash in bitcoin. You do not need to sell the bitcoin when bitcoin price goes on. This is good. However, it can be very speculative and volatile in movements of price. Opportunities for gains are positive.
bitcoin was made to end the world. think about it, when all our money is is digital all they have to do is shut the internet down and everyone will die because no money for food or water no grocery stores, and the few that survive will get killed off by drones
Interesting thoughts there.. You may be right or this may be the rant of a raving lunatic! Only time will tell eh?
they can't shot down the internet it's made of many smaller networks run by ISP's so to shot down the internet they would need to close all the ISP's in the entire world.
(ISP = Internet service provider)
shut
well that or a solar storm -- EMP...
correct and emp
lol wow, since you feel this way, start taking action to protect yourself. Grow a garden, get ready now! Start buying things to barter. Buy guns and ammo.
you are exactly right hun. you shoiuld stock up too. Look up 5g internet its killing everyone
Bitcoin futures may lower prices with short-selling. Altcoins will rise!
https://steemit.com/cryptocurrency/@xsid/vertcoin-continues-steady-pace-with-no-signs-of-slowing
Whenever I mention that futures are coming, the first thing the bitcoin/blockchain illiterate from Wall Street says is “great! Now I can short”. With the current crypto trend, these guys are going to get slaughtered by the mother of all short squeeze..
Not sure how this could play out ultimately will see a short term price rise because of it though.
Yep. Short term BTC, ETH and BCH are all looking very bullish!
Bitcoin futures on CME already seems to be green lighted by regulators, so bitcoin will soon grow even bigger.
https://steemit.com/bitcoin/@petermail/how-big-bitcoin-will-b
The future trend will be pay-apps with more than just one cryptocurrency. On January 7, 2018 there will be a new pay-app available for Bitcoin and Futurocoin. Why is the launch of the Futurocoin so important? Behind the Futurocoin there is Futurenet Club, a community of more than 2 million people. Right away from the start, there already exist acceptance places and the Futurocoin will be listet at the BitBay-exchange. Futurocoin has a real decentralized blockchain and everything that makes a real cryptocurrency. Its strength is the huge community awaiting its launch. People who acquire new acceptance places will be rewarded with a small percentage of the turnover in Futurocoins of that merchant. This will cause a fast increase of acceptance places for the new coin. As the pay-app includes also Bitcoin, the good old cryptocurrency will also profit from the activities of the Futurenet members. This is really good news, as many acceptance places will spread the use of a cryptocurrency and ensure a steady future price increase of these cryptocurrencies. This is very diffrent from the actual volatile behaviour of the Bitcoin. High volatility means only shorttime price gains, while many acceptance places cause a steady longtime increase of the value of a cryptocurrency. By the way, those who join Futurenet Club before January 7, 2018 and directly upgrade to Royal for USD 1685 will receive 50 Futurocoins into their wallet. This is considered cheap. I expect a price of the Futurocoin between USD 30 and USD 120 within the first few days. There are already approx. 750,000 buyers waiting on the sideline while the supply will be very limited. For joining please use this link: https://successcoach.fn.xyz/
BITCOIN to the moon
Thank you
The post was really informative.
Thanks sir
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Let's wish dimson short BitCoin futures in NASDAQ and burn his fingers !!!!
The Wall Street Journal is not enamored with Bitcoin...yet.
https://steemit.com/cryptocurrency/@xsid/wall-street-journal-decries-bitcoin-saying-no-one-uses-it
really bitcoin is a great cryptocurrncy ,
A lot to think about. Thank you.
Great post! I think will hit 15k by the end of the year. View my previous analysis where i predicted bacon will hit 12.5k!
https://steemit.com/bitcoin/@cryptofrombed/bitcoin-hits-11-200-what-s-next
Hi,Thanks
I found this content very useful
I would ask you the permission to translate your post for italian's steem comunity
Thank again
Go ahead! Thanks.
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