Bitcoin Futures: What You Need to Know

Home Media B Bitcoin Futures: What You Need to Know
Published on January 14, 2020

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This cryptocurrency space is growing and gaining exposure to those who have their noses deep in the traditional financial markets. Much like anyone who is first introduced to this space, these guys can see some potential. But let me be clear, they are not seeing the same kind of potential as we do. They see a new market they can use to do more of the same old tricks. We’re seeing more and more companies trying to “merge crypto with traditional markets”. There is one issue here for these guys and I’ll explain it as this video progresses, but first, here is a brief review of the environment which ultimately helped inspire the creation of the first so far successful cryptocurrency, that is Bitcoin and all of its successors.

Let’s take a quick look at derivatives markets. They are massive and account for reportedly trillions of dollars worth of debt, (we’re going to talk about that concept of reportedly, but first) all with very questionable third parties that cover losses using money printed out of thin air. Case in point, the investment banks that were servicing these derivatives, think: Wells Fargo, JP Morgan, Goldman Sachs, Citigroup, Morgan Stanley, they all couldn’t pass it on to anyone else and therefore were the ones left holding the bag when the housing market bubble collapsed.

They took on losses that very easily would have left them bankrupt, jobless and broke. But instead of allowing those investment banks to suffer the repercussions of terrible business practices and immoral actions, the US government decided to use its taxpayers’ money, to the tune of trillions of dollars and perform what we all fondly know as the big bank bailouts. These bankers ended up seeing massive bonuses as a reward for “being good at their jobs” while US citizens watched their pensions and houses disappear and eventually this whole debacle affected other countries worldwide that were involved in the US markets. It should have been a wake-up call for everyone, and perhaps it was.

So let’s get it clear, For those who are incredibly worried about derivatives leeching its reputation into this space in the form of Bitcoin futures, there are some distinct differences between traditional markets and this crypto space. I’m not a particular fan of bitcoin futures, because they are pure speculation of the price and those who get into them really have no interest in being able to truly own the hardest asset and use it and experience that liberating feeling of being able to transfer value in a peer to peer fashion without the permission of some bank to use your own money.
But they do now exist and so with that comes this reminder: This crypto space is still a free market, there is no business that is “too big to fail” no government will bail out companies who make the same kind of mistakes seen by the investment banks we all know and love. Specifically pertaining to Bitcoin, it is a public and permissionless blockchain affords anyone the ability to know the exact status of the actual asset that is Bitcoin and its network. Unlike the housing market in 2007 and 2008 which had completely fabricated AAA ratings for loans that were actually quite unsafe.

You don’t have to rely on trusting some third party to lie to you, for any public and permissionless, open-source blockchain, you are completely free to investigate the code, set up your own node, and be a part of the network itself, allowing you to personally see and verify the transactions occurring. With an asset that has a known, set supply that cannot be altered to service the whims of whoever decides they want to bail out a company. The birth of Bitcoin and subsequent cryptocurrencies have brought us a kind of autonomy and transparency to monetary tools the likes of which have never been seen. It’s still valid to get excited about that fact, no matter what the price of Bitcoin is.

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Category :  Media B
Tags :  bitcoin , bitcoin futures , cryptocurrency
  1. Nick

    Good information but I kinda wished you would have explained a what futures / derivative markets are exactly, how they impact the underlying asset, and how this relates to Bitcoin futures specifically. Some references to CME and BAKKT would have been cool and your feelings on how these markets shape our beloved cryptosphere. Because like them or not, they're probably here to stay, and more derivatives will undoubtedly spawn around crypto as we go.

  2. Your Channel came up as a “as recommended for me” and I really love the content I would love to ask you a question. What are your thoughts on BAKKT or similar institutional players using bitcoin in the same way as the banks have manipulated Fiat or Gold i.e. fractional reserve banking or “Holding” Gold in the Vaults when the clearly haven’t been.

  3. Well stated, right on Heidi!!! Boo to the bank bailouts of 2008. Disruption of the banking system through decentralized currency, yay!!!

  4. Came for profit discovered a way to change the world

  5. Sean M

    I recommend newbies watch 10 Million Dollar Bitcoin Endgame and Murad Mahmudov: The Ultimate Bitcoin Argument. I began recommending Bitcoin in 2013 and thought I'd heard every argument for and against it until finally finding Murad's work, can't believe it escaped me all this time. McAfee thinks privacy and Bitcoin aren't compatible, but I have a more positive outlook after watching Murad's vids. It's a great thing that society is starting to participate in 'decentralized' models, but if Wall Street is allowed to guide the crypto markets with their false 'trade your liberty for our security' model, Bitcoin won't change the world, it won't end war, it will be nothing but a place for savvy investors to store their money while the military complex grows bigger than ever, which is exactly what President Eisenhower warned us about. Look at all the digital assets that are 'security- based', which are literally constructing 'The Matrix' and a 1984 mass surveillance system to control every man, woman and child with the microchip. Trying to gain riches in a corrupt system that deceives us into believing war is security is merely repeating the same thing over and over and expecting a different result. The real issue when it comes down to it is that we need to stop funding the war machine through taxation. The most dangerous deception in society is that we need a massive military and police force to 'protect us'. Trump keeps winning the approval of our idiocracy by saying 'America first', which I guess means he loves America so much that he doesn't mind sending your kids to their manipulated wars to kill themselves and other kids who are being fooled by their governments as well. Is this not doublethink? That's what America first actually means, divide and rule. But you can't blame Trump for your naivety.

  6. Besides my wife I think you are the most beautiful woman on the planet and much smarter than her

  7. Thanks Heidi. Great video!
    The scary part is these companies have so much money they pretty much make up their own rules and now they
    recognize they can make a truck load of money with Bitcoin futures.

  8. All my wolves, begin to howl
    Wake me up, the time is now
    Oh, can you hear the drumming?
    Oh, there's a revolution coming …..

  9. I practice what I preach and believe that Bitcoin and other cryptocurrency will change the world financially in a positive way for the everyday person. The greed of banks and financial institutions along with governments will gradually lose their power, bringing forward a new system that works for us, the people.

  10. C C

    The Futures Market can easily be manipulated, taking Bitcoin on some wild rides. Max Kaiser and guests have talked about it for years regarding gold and silver.

  11. Eventually when Bitcoin becomes a medium of exchange and a number of account, the derivatives traders feel bad they did not invest in real bitcoins. And when they understand that, it’s too late and they have pay high prices for real BTC.

  12. It should be what's BTC future. Rekt

  13. Curious

    Bitcoin is about sound currency for me.

  14. I'm going to have to disagree with you here. Let's be frank, the majority of crypto holders are holding the coins to make money. At this point, BTC is being treated more like a store of wealth which is extremely volatile. Right now, it's not a use of an everyday currency. As for futures, in every currency it's healthy to have both speculators and hedgers in a market. The natural market price of BTC will eventually get smoothed out with derivative markets, so to say those who trade derivatives are bad for crypto isn't a correct blank statement.

  15. Come on, you are sure to have a money button account.

  16. TARP is now automatic through the Federal Reserve. It's happening in real time as the Fed pumps hundreds of billions of dollars into the market daily. No vote needed.

  17. Heidi I love your content! It's all focused on fundamental principles of crypto and it means the world to me that you strengthen the education into new folks joining the space. Thank you! I really can't wait for another of your videos, they're very educational.

  18. Like where is there warehouse address with all this so called btc lol?

  19. Great talk. Covered a lot of major points beautifully.

  20. Yes stay away from bakkt. … they not backed. Cme also! 100% paper coin meaning you never actualy / functionally receive btc or any other alt against a " promise " its basicly like buying btc off Robinhood lol! But with the additional risk of leveraging your life away 150x lol! yeahhhhh goin to lose my house and kids tonight honey lmao

  21. Thank you for the good audio, at least are there some people where give a shit on Quality 🙂

  22. Derivatives are tools and as such can be used wisely or poorly. Miners for instance probably find very useful to have a way to hedge the incredible amount of risk they're exposed to due to price volatility.

  23. HARR

    Making profit in any market trend in bitcoin should be the main concern of all investors. Hardcore hodling is too risky due to the volatile and unpredictable nature of bitcoin. We are on the verge of a strong bull run but at the same time things could go sideways. So making profits and accumulating should be of outmost importance to all investors, that’s why I trade with signals provided by Caleb Easterby, he is the best amongst other signal providers I have used. With his signals being implemented in my trades I have grown my portfolio to 10 btc from its initial amount of 3 btc. Caleb’s signals are precise, accurate, efficient and gives you a constant winning streak. He can be reached through WhatsApp (+31 635250332) or Telegram (@Easterby) for more insights on cryptocurrency and also for those looking to make big strides in the crypto sphere.

  24. You rock !! m/
    I share your points of view.
    We need to give this crypto-movement more space in our daily life.
    And promote them as you do.
    Good job !!

  25. Heidi you are gorgeous and intelligent. are you somekind of crypto hologram? haha <3

  26. Bitcoin future are a trap to diluite real Bitcoin with digital fake money

  27. cryptos = value outside the usual corrupt world systems. By the way, you have great fashion style. Could start a new line called "Crypto Clothing".

  28. Giak Q

    "We will tame Bitcoin" CME futures ahole

  29. this is great, i've been telling people this, now i have a video to refer them to now instead of try to explain it!! btw have u saw that cash app has now added stock option buying an selling, that is big news no ones talking about, and Bitpay now takes Ether so that's another i think big moves for us

  30. Bitcoins natural price flow to its halvings has been altered by cme and bakkt futures spot price manipulation. Futures should display their wallets for cross checking. But its using fiat bitcoin so how do you check that? The world is now relying on a spot price that is reliant on futures fiat btc. They dont rely on the old global combined decentralised exchange spot prices its to weak in volume and often more expensive than the futures prices displayed. Hard to notice as the market is sooooo efficient, the arbitrage effect which was rampant before has lmkst disappeared. Btc price is now controlled and they can do pretty much what they want with thr price. Many people will get bored and sell their bitcoin to the new owners at cheap prices. Someday thr new owners may decide to destroy it or let it rip making them rich. What will they do is anyones guess. But meanwhile all the other features of bitcoin remain in tact. For now. It is uncharted waters ahead.

  31. Feet on the ground. Love this channel.

  32. Yep, the current economic situation is rigged. I'm personally not excited by crypto at 'any price' as for most that price is a big fat zero. The basic premise is of course is awesome but can humans live with such a perfect system? We just love drama! It's how we waste energy instead of achieving god /Buddha consciousness/enlightenment (pick your label). THAT'S the human story.

    Anyway I'd say best to hedge our bets in this space as we don't know which if any of the cryptos will survive and thrive. Diversify and stay safe. Peace.

  33. There can not be enough thumbs up for this video. Short the traders, – don't trade.

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