What is bitcoin futures contract and how will it affect the market...

What is bitcoin futures contract and how will it affect the market? I tried googling but I'm

Then why do you think you will understand it when someone here explains it to you?

Use a food analogy.

People explain things differently

I just want to have a constructive discussion

Crypto is dead. That's all you need to know.

Being this delusional

Being this delusional

well its like a few years back a Japanese chef opened up a fantastic restaurant chain that serves a revolutionary food with a new taste that no one has ever tasted before. About a year ago a bunch of very wealthy sons of oven dodgers decided they wanted to buy a bunch of these restaurants. 6 months ago this restaurant began really taking off and growing in popularity.

The oven dodging sons decide to setup a fund that allows people to bet if more or less restaurants will be opening up worldwide

Being that the oven dodgers bought a lot of the restaurants, they're going to bet that less restaurants are going to exist in the future while selling a lot of the restaurants they have.


Basically a bunch of kikes are shitting on your plate and you're going to have to deal with it if you continue to use this restaurant

But who pays out the bet if they win?

> inb4 "well user, you see futures are nothing but a bet..."
WRONG

Every bet has two sides. Some people are betting it will go up, some bet it will go down. There can only be one winner (that guy gets the money from the other guy).

Yeah but are they all Jews because then /pol/ lied to me and half the Jews lose.

the pool of people betting on the amount of future restaurant

no one expected McMoto's to go downhill as it was just taking off in popularity, of course unless (((they))) decided to sell off thousands of the restaurants they bought for cheap

You put effort in some food version of btc futures contracts expiration. God damn biz.

there's two kind of jews:

inner circle jews
out of circle jews

inner circle jews always win and you probably don't know many of them

Some people say it might create a bullrun and some say it could crash the market even more. Why?

Okay, I get it now, I didn't know there were different types of Jews because /pol/ always says to gas them(with many brackets) all.
I feel smarter already.

if they go long, which they will soon, there will be a gigantic bullrun.

Think about it this way, they wanted to sell a lot of their shit anyway, but they have so much shit that it would crash the market if they sold it all

So they set up futures so they can sell while profiting from the crash they cause

but they know cryptocurrency has a future so they want back in after the crash

so what do they do?

When its time they want back in they go long and pour a shit ton of their earnings from selling/shorting the last few months

BTC will be 1million by the time they're done, and it will be 500k a month later. Mark my fucking words

I'm a libertarian at heart but futures needs to be regulated like silver/gold

Being this delusional

Michlan is that you?

Bring this delusional

the futures are ending soon.

We will likely see what's going on now continue through the 26th. Around Feb 10th we will have a clearer direction of where this is all going. The long would most likely happen around then if it ever did.

I hope you're not being sarcastic, it really is always the jews man. I'm don't even hail from /pol/ but those fuckers are outright vile

and not the normie civilian jews, I mean the fuckers who all group together to try to scam the world and get away with it with their equally long nosed lawyers

there's a reason why Pinocchio's nose gets longer when he lies, its wisdom beyond the ages

I predict they will go long on BTC next time and that BTC will dip to about 7.5 to 8.5k before current one expires on the 26th

agreed

This cleared some fog

Both things are going to happen, first the current crash to scare people, then they're going to throw a curve ball in the form of bull run and fuck anyone in the ass

what's stopping them from shorting it for months on end everytime one of these contracts end?
especially if it's already overvalued like people say

Bring this delusion

hodl my child and you shall rise

>people actually think futures effect the market in any meaningful way

Nothing. They just want more money and they can do this for as long as it bring them money.

People with big bucks and big dicks bet on the future price of bitcoin. If they go short, they fuck us over, if they go long BTC to 100K.
Also we can't affect it because this board has around $70.

They can't do this for two reasons

1. They don't want to sell the BTC below what the bought it for, whatever that might be

2. They need BTC to sell in order to to this

they could keep shorting it, but the more months they short it the more likely it is that the next month they will go long because they will run out of BTC or it will become less profitable for them to sell/short

It's simple, if you are betting that the market is going down, you're going to make sure the market goes down.

It doesn't even take that much to start a panic sell in this environment.

Hasn’t read a single financial history book

Isn't there alwayas the same money long as there is short? So what tells us what (((they))) think, since half of them goes short and half of them has to go long?

you actually wasted your time to click our IDs to post something this stupid

here's your (you)

can't they just buy up a fresh supply of dipped bitcoin after they're done to resupply for the next contract?

A futures market is basically a way of gambling between two people who are willing to bet that the price of an asset will go up/down without actually having to hold the asset. No food analogy is needed as this already happens in commodities like corn and oil.

A bitcoins futures market basically means people can now make money on Bitcoin without ever having to touch the hot potatoes themselves

yeah but they'd be selling that new batch for less than what they bought it for if they short it again, it would be more profitable for them to go long, especially since BTC rallies cause such massive spikes

You really suck at this.

Please answer this user

They do the think that is most logical. At christmas BTC was overbought and overhyped. It's easier for them to make it go down than up at that point.

So they do the logical thing and push it down, as it was going to do that anyway.

>muh futures is going to destroy the market
Demand for crypto is going to outweigh any of this shit.

Yet you took shit like at face value

In a futures contract the buyer agrees with the seller to buy at a predetermined price in the future. Futures mostly involves commodities.

There are currently two different Bitcoin futures contracts we need to take in to considerarion: the CBOE futures and the CME Futures. The CME Futures expire on the last Friday each month, that means this Friday. The CBOE contracts are on the 17th each month.
The CME contracts are based on an average of many exchanges whilst CBOE futures are based on Gemini only. This mean CBOE can be easier to manipulate.

As many have said the futures investors have probably been depressing the price. I am sure we will have them going long soon too.

At least he made an effort.

similarly, IF we get down to 8k-9k-10k, it will be very difficult to push it down further.

The logical thing for them to do would be to to start pumping it up again while going long.

In the end they still follow the market trends, they just push it down/up further to get more money out of their bets.

Futures make it profitable to manipulate the market with limited risk.

you shit on my comment I worked so hard on?

You fuck you've brandished my ego on this anonymous Sudanese christian dating site and now I have to call you a nigger

you fucking nigger

But still there have to be a lot of losers in the future market because those short guys need someone to go long to initiate the future contract?

Imagine that I'm cooking a really delicious pizza and you are on the living room right now and you smell it, and you say "wow that smells really good and want to try it", and I tell you that you can come next week and I'll bake some pizza then.

Next week you arrive and I serve you noodles because the store ran out of wheat and tomato sauce.

Yet that's not how futures work at all.

Apply yourself.
Well done, A+.

honestly they probably will stop trying to manipulate the market because of this, who the fuck has the balls to go long or short BTC without being one of the biggest whales in the game? You'd have to be a fucking retard to do that. I doubt the long pool is very big at all for these recent futures

>The oven dodging sons decide to setup a fund that allows people to bet if more or less restaurants will be opening up worldwide
>Being that the oven dodgers bought a lot of the restaurants, they're going to bet that less restaurants are going to exist in the future while selling a lot of the restaurants they have.
How the fuck are they making money if they own both the restaurants and the fund.
They're the ones betting, they're playing their own game.

>well done
You want it medium or medium-rare, you know nothing..

Who are those long-position-losers now? I guess none of us normie faggots goes into futures, so the long-positioned must be some expirenced people too. Why aren't they stonger and manipulate the market to go up? With all those new shitheads in the space it should be as easy to FOMO push it up as it is to push it down?

do we know how much the future contracts are worth?

It's of course simplified here, but the system works. Some brokers will allow you to bet against the house. Let's say i'm your broker.

You bet me that BTC will go up for $1000. I will now buy $1000 worth of BTC. If BTC does go up, I sell my BTC and pay out your prize (didnt cost me anything). If it goes down I sell my BTC at a loss, but I get your bet's money to compensate.

This example makes me go break-even, but a real broker will be asking fees and commission and stuff, so they will always be winning.

It's again simplified and I'll get some hate for this, but thats the basic idea for some types of futures.

this

and ballsy whales / actual retards

Exactly, thanks for explaining. And what some of the "muh, futures detached from underlying assets" idiots don't seem to understand is that you can make double the money (and with a fraction of the risk) if you actually have a certain level of control over the price of the underlying asset, i.e., in this case meaning you hold a lot of BTC (for crashing the price)/have a lot of fiat (to pump the price).

>muh, futures detached from underlying assets

I hope you do know that almost all futures contracts don't actually involve buying the actual asset, only paying its agreed price in dollar. That's why people that know how this shit works warned futures won't make more money actually enter the bitcoin market.

That's true. Pure futures don't affect the market.

However, you can short via futures, and then sell millions of btc to help the market dip, amplifying their profits.

The futures are not the problem. It's them manipulating the market (via fud, sell-offs, ..) to help make their bets more money that is the problem.

With 10m-20m you could easily make BTC drop like 2k in value in seconds, potentially starting a panic sell that goes much further. Thats a pretty cheap investment if you're shorting during this.

Uhm, did my post in any way imply that I think you HAVE to own the underlying asset? All I was saying is it doesn't HURT to own the underlying assets.

Think of it like private prisons in the US. The private prison companies don't HAVE to own the politicians proposing legislation regarding non-violent offenses such as drug possession, but it sure doesn't HURT for them to do so and get millions of innocent drug abusers aka slaves sent to their shit holes to boost their profits. See what I did there?

Thanks for the info, anons.

Futures basically means you buy X at a agreed upon price 30 days from now.
I don't understand the anons here, how does crashing the market benefit to buyers at all? It benefits the sellers, but not the buyers.