I'm going to get real with you biz, normie style. No memes, no jks, no copypasta

I'm going to get real with you biz, normie style. No memes, no jks, no copypasta.

Take it or leave it, but I want you to know there is a serious, serious amount of money to be made with BTC, unlike we've ever seen before. I speculate shitcoins, so for me to be shilling BTC, its definitely out of the ordinary.

So I'm loving all the FUD about the futures market and bitcoin over the next week. The price for BTC has dipped and dipped, allowing me much cheaper entry and I've literally stocked up on as much as I financially can.

My dad was a futures trader, soybean and wheat mostly, speculating for years. I don't have a professional level understanding of futures and derivatives but I'd definitely say I'm about as close to professional level as I could be, growing up with my dad.


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The CME Group, arguably the world's most liquid futures exchange, will begin listing bitcoin futures within days. Futures contracts are financial derivatives, an asset whose price is determined by an underlying asset. CME's bitcoin futures will settle in USD, thus, traditional financial institutions will be able to effectively trade bitcoin - i.e. speculate on the price movements of bitcoin. You will note: the futures contracts settle in USD. How does this affect the price of bitcoin? The answer lies in the arbitrageurs who will straddle both the futures market and the market for the underlying bitcoin.

This is getting technical so before proceeding, I want to provide an analogy. ExxonMobil operates in both the market for physical oil and the futures market for oil. ExxonMobil is in the business of drilling for oil, and not speculating on the price of oil; thus, ExxonMobil sells (short) oil futures contracts to mitigate the price volatility of the oil they own (and are long) before they can physically sell it. I hope this idea of hedging is clear. Now, here is why the CME bitcoin futures contracts are bullish for the price of bitcoin in the coming weeks to months. The bitcoin futures arbitrageurs will hedge in a manner similar to ExxonMobil. Arbitrageurs are not in the business of speculating on the price of bitcoin, they are in the business of lending money to people who buy futures contracts.

Buyers of futures contracts are using margin (i.e. borrowing money). The interest rate at which arbitrageurs lend is determined by the market (but my guess it will be slightly greater than LIBOR). What happens in financial markets when you can earn interest rates higher than LIBOR effectively risk-free? Large financial players make trades worth billions of dollars.


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IN SHORT/TLDR/IMPORTANT SHIT:

Arbitrageurs will sell short bitcoin futures contracts and buy the underlying bitcoin.
This buying of underlying bitcoin will be bullish for the price of bitcoin - billions of dollars of new money will seek to buy bitcoin. We will see growth like we've never witnessed before, and in turn BTC prices will NEVER go below 15k USD again.

Good luck Veeky Forums, Ive never really gave a fuck about any of you fagets, but you've provided me with multiple shitcoins that weren't on my radar that I've made quite a bit of money from. I doubt many of you will read this, but the ones that do; I hope you make the right move and stock up, and stock up fast on as much BTC as you can possibly afford.

Thanx?

>there is a serious, serious amount of money to be made with BTC

wow really made me think thanks for that insight

shut up faggots. the OP was good.

nah im stocking up on Bitcoin Cash

i dont want to sell my cash for bitcoin short term

just bought more on this dip, thanks OP

I went all usdt, starting to consider getting some bch. I hope BTC takes a nosedive

this is a nicely done pasta. feels like ive read it a few times this weekend. Are u larping or for reals?

I am so close to caving and purchasing my first coin, but would waiting be better until next week? thanks user appreciate the tips!!

he's just betting sneky jews gonna jew and buy the bitcoin and pocket the difference in the future on the future contract sold that they bought with the money for the contract

But people want oil. Not even drug dealers want bitcoin nowadays.

>My dad was a futures trader, soybean
S O Y B O Y
O
Y
B
O
Y

OPINION FUCKING DISCARDED

u literally copied this from reddit you retard

thx babe

my reply on reddit you retard

That's right normies, fill up those bags

So do I hold btc or do I buy futures

>OP desperately tries to shill BTC one more time before it gives up the ghost
>fails
RIP bitcoin, it's been swell (not really)

So let's assume that I agree with you, I don't know if I do but it's an interesting assessment. What is the mechanism to "make" this money?

Do I put fiat into bitcoin? I cashed out mostly at 16,900 and my remaining holdings are various shitcoins, the application of which I think is promising or novel in some way and I consider them all entirely speculative though I would say i am long these positions.

Where do you see bitcoins price going in a year and what are the indicators in the timeframe to buy btc vs take profits?

Thanks for the post, interesting even if a LARP.

Also, in your analogy the underlying commodity is purchased for consumption rather than as an investment. This difference seems very significant to me in terms of the affect of the futures market on the value of the commodity. Meaning, I can't see shorting the futures as a long term hedge unless more and more money comes in over time perpetually increasing btc's market cap. It seems like a great way to make money once off the crash...

>So let's assume that I agree with you, I don't know if I do but it's an interesting assessment. What is the mechanism to "make" this money?

Long BTC

>Do I put fiat into bitcoin?

Yes.

>Where do you see bitcoins price going in a year and what are the indicators in the timeframe to buy btc vs take profits?

100% speculation. Not going to shill you on X price by X date, but I'll go so far as to say it's growth CY2018 will double (or more) the growth experienced in CY2017.

>Thanks for the post, interesting even if a LARP.

no larp.

>Also, in your analogy the underlying commodity is purchased for consumption rather than as an investment. This difference seems very significant to me in terms of the affect of the futures market on the value of the commodity. Meaning, I can't see shorting the futures as a long term hedge unless more and more money comes in over time perpetually increasing btc's market cap. It seems like a great way to make money once off the crash...

The commodity was just an example, and arbitrageurs are not bound by WHAT the commodity is, just the fact it's purchased on margin.

How much lower do you think it will go for this little dip I think it's at 13.5k right now (I'm on cad). I'm new to all this shid so I don't know all the terminology yet. If I have the right idea plenty of people probably cashed out at the peak so are those transactions still waiting to be completed - take 2to3 days and then the price is affected (goes down because massive sellouts? ). How do futures work with bit coin is it just when you buy at a certain price then it's held there then in a week or some set amount of time you get it?

you're a faggot.
btc has proven over the last 2 months that it has absolutely no scalability
its obsolete tech and will eventually be worthless
i'll enjoy your wojacks one day faggot but dont say i didnt tell ya so

Do you see Bitcoin being dumped starting Sunday before the huge growth in 2018?

Bitcoin is gonna go down. Not sure when, but it will. It's slow and pricey and nowhere near as secure as the futures.

>The commodity was just an example, and arbitrageurs are not bound by WHAT the commodity is, just the fact it's purchased on margin.

But given bitcoin's only method of bringing new money in over time is if people buy it to hold it rather than consume it why will the money continue to come in? The value would have to stabilize for people to buy it and spend it while the amount available increases with mining.