In an interview this morning on CNBC, Thomas Peterffy stated that he thinks Bitcoin futures products are only going to add to the popularity of the already immensely popular bitcoin.
Specifically, Peterffy had this to say:
"I think that bitcoin being listed on two reputable exchanges gives a great deal of reputation to the product itself and I think as a result it will become even more popular than it's been before."
More popular than it has ever been before?
You don't say...
Those are very interesting words coming from Peterffy.
If you do not recall, he went out a couple weeks back and stated that he thought Bitcoin futures products were potentially going to bring down the world's economy.
Bring down the world's economy?
Those are some pretty big words.
They would sound outlandish if they hadn't come from the mouth of the Chairman of Interactive Brokers, one of the most professional retail brokers out there.
The specific quotes from Peterffy read as follows:
"The plans by the CME to launch Bitcoin futures is suicidal. It could bring down the entire economy"
"For the first time, I am extremely scared."
This was due to the fact bitcoin futures would be cleared on exchanges that also cleared many other futures products. The fear was that the volatility of bitcoin could bring entire exchanges down were they not able to react quickly enough.
Why the change of heart?
For one I think he is seeing that these things are cash settled and that they aren't really tied to the actual (physical?) product that is bitcoin.
Also, I think he is seeing what the rest of the world is seeing...
Bitcoin is here to stay, at least for now.
It's not a beanie baby, or some flash in the pan one hit wonder type of investment. It's a revolution that is supported by millions of millennials that are fed up with the way governments have run things since they've been alive.
The old way is done, at least their minds, something more along the lines of bitcoin is the future, at least according to them.
What this means is that these things have much more staying power than most people originally thought.
Just because they are the future, doesn't mean they will go straight up.
I have no doubts that we are currently in a price bubble and we will have a massive correction at some point here that shakes out a lot of the weak hands, it's just a matter of when at this point.
However, the staying power of cryptocurrencies in general has already surpassed what even I thought it could do in such a short time.
This run truly has been remarkable. Time will tell how high it goes and how long it lasts. It doesn't look like it is done yet though.
Stay informed my friends.
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Bitcoin is a mad goat.
It is not possible to stop bitcoin right now
The Bitcoin futures are great for Cryptocurrency but bad for Bitcoin. It is time to move on to better projects.
I agree, the price of BTC has been capped since futures started trading, other cryptos have started to move up in value. I think more people will move on from bitcoin and venture into different currencies. This could be bad news for bitcoin in the long run.
Still, bitcoin is bigger than the other top 5 cryptos in market cap
I completely agree with this statement. I just hope that large "pump and dumps" in bitcoin, by large investment companies, don't drag other cryptocurrencies down as well in the short term.
The pump and dumps by the investment firms are a big deal and something to be considered.
Yes we will see many more people change their minds about crypto in the months to come.
In the world of finance the bad is the good and the good is the bad. Long live STEEM !!
I just saw it peak over $3 for a couple minutes here. :)
Didn't know he made ANY comments about cryptocurrencies, but for him it makes sense to support the futures bc he gets to offer them to his customers. He wins no matter WHAT happens to bitcoin.
Great point.
Dabak
bagus
it helps thanks!
At least the chances of US regulations are gone, should bring some stability and all pr is pr :))
Thanks
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Sure. Thanks! No need to ask.
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Yes Bitcoin making popularity. Can't think what happen in next.
bitcoin,bitcoin and bitcoin everything is bitcoin😁😁😂
Did you know that his work (Steam) will reach about $ 100 in the next year
You think steem will hit $100?
I do believe Peterffy's concern is legit. That's why Interactive Broker requires a very high margin to trade Bitcoin Future. Other brokers such as GS only allow certain group of people to trade.
His concern that it could bring down the entire world's economy?
Yes. The minimum margin requirement for future contract usually is 10%, but let's say you have to put up 20% for Bitcoin future. The Bitcoin spot price current is at $20K, and you only need 4k to trade one. One day one guy shorts 10 contracts for 40K, then the price suddenly shoots up 30%. This guy got a margin call and is wiped out immediately. His account only have money to cover 20%, so the other 10% will need to come out from the brokerage company such as Interactive Broker. Peterffy is worried about the extreme situation because the Bitcoin market is a thin market.
Yes that is the point though, the market is way too small to bring down the global economy. The housing market that took us down in the 08 crisis was in the trillions. This is barely in the hundreds of billions.
The Bitcoin future trading market is a cash settled derivative market. It has nothing to do with the Bitcoin spot market. People can bid in trillions in future market despite the Bitcoin spot market is in billions. As long as there is one seller matching one buyer for a contract, the brokerages can sell billions of these kind of contracts if they are crazy enough.
I am definitely not looking forward to trading crypto with these retards on wall st. that are just looking for a quick return on their USD.
Future perfect...
People are gonna lose their minds when this brings down the world's economy, y'all should be ashamed of supporting Bitcoin!
JK
Are you 100% sure?
Sometimes when I think that Bitcoin (and cryptos in general) market cap is just a fraction of gold's market cap, or S&P500 market cap... I just only can think in all the room they have for growing.
Thanks for your posts, I always read and learn a lot from them :)
People can see all this growth but they still don't understand how it is growing which makes them skeptical. When I am with my family this Christmas, what is the best way to explain to them why crypto is the future?
Explain to your family all of the benefits of cryptocurrency, from the quick and cheap transactions anywhere in the world, to the financial freedom it can provide to people all over the world (including places where banks are not established). More importantly explain the implications of the blockchain. This is perhaps the most important aspect that bitcoin has provided to humanity. It can be used for transparency, and the sharing of many applications such as electricity, computing power and so much more.
Thank you. When they talk about changing their coin to cash I will have to tell them how difficult it is. Is that going to change?
Naturally, yes, it should get easier. Banks will most likely be forced to adopt crypto-currencies and will need to provide more elegant platforms.
BUT why stop there? I think the better solution is that one day soon you WONT NEED to switch back to cash ( aka common retails begin accepting crypto-currency as standard payment). When you can buy common items such as groceries with a digital decentralized account, the question becomes why even switch back to cash?
With the addition of the futures contract in the stock market sends a lot of signals to those out there who have been following cryptos for awhile that enough money is leaving these markets that they are trying everything in their power to keep that money there. They created this fund to take part in the massive wealth gains that bitcoin and other cryptocurrencies have been amassing this past year however this is a dangerous move for big institutions because there is a lot of money being played with in the futures and the high volatility of bitcoin could prove troublesome for institutions that have to cover these contracts.
It's crypto all the way
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Yes people are changing their perception with time
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Well informed, thank you jrcornel. My opinion is this is only the beginning because ther are so many digital product and also new ones that futures can get attach to. Maybe institution will on the whole will bring digital currency forward.
I've written it myself, I'm waiting for your views.
https://steemit.com/bitcoin/@mutluhan/everything-you-need-to-know-about-bitcoins
It seemed the Futures brought stability to the Bitcoin price.
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