Bitcoin Futures: Good or Bad for Cryptocurrencies?

The CME recently announced they're going to be launching bitcoin futures…

And this brings some massive opportunity, but also some big potential downsides. So, in this episode, we're going to take a quick look at the history of futures and how this could work with bitcoin.

In this episode, you'll learn:

– What are futures and how do they work?
– The top 3 benefits of bitcoin futures
– The biggest potential downsides and dangers to bitcoin futures
– Why Wall Street is rushing into the cryptocurrency markets
– Who recently placed an ad in the Wall Street Journal against bitcoin futures
– 3 predictions for how I think these futures contracts will affect the markets

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Disclaimer: I'm not a financial advisor, and nothing I say is meant to be a recommendation to buy or sell any financial instrument. I will NEVER ask you to send me money to trade for you. Please report any suspicious emails or fake social media profiles claiming to be me. Don't invest money you can't afford to lose. My videos may contain affiliate links to products I believe will add value to your life.

39 Comments on Bitcoin Futures: Good or Bad for Cryptocurrencies?

  1. Question of the day – Do you think bitcoin futures are a good or bad thing for cryptocurrencies long-term, and why?

    • I will not be leveraging btc at all. But everyone is looking for a good reason to jump into BTC so I plan to try and profit from this trend. By swing trading

    • Yes! the more exposure to Bitcoin the better. I think the spirit of Bitcoin is much bigger than the CME. Question for you @Chris – what affect will Bitcoin have on the CME?

    • Honestly, it scares the hell out of me. I’ve day traded futures since 2002 and always loss money. The key word there is “daytraded”. Why? Because the leverage that comes with futures prevented me from being able to withstand even small swings against my position, thus requiring me to day trade. With Bitcoin I started as an investor and I started very small. But the trader in me kicked in when I noticed the price action followed standard technical analysis very well. And because I wasn’t trading a leveraged product, I could withstand large moves with little worry. Bitcoin would literally have to go to zero in order for me to lose all of my money. This allowed me to trade very comfortably. I can now surmise that my failure trading futures was due to over leverage. I am afraid that the CME getting involved in bitcoin will allow the type of manipulation that confuses traders and will interfere with the easy to read price action that we currently enjoy in bitcoin.

      I plan to sit in cash once Wall Street is released on bitcoin and watch to see how their involvement affects the market. The professional future traders job is to take as much money as possible from the undercapitalized and under experienced participants. Even after all of these years, I still fit that category. Hopefully they don’t mess things up too bad and I am still able to swing trade bitcoin. But I’m also going to be looking at other crypto currency markets going forward.

    • Futures are used to regularly suppress the price of gold. Could be used the same for BTC….

  2. Hello Chris, I think is good opportunity for stock trader (outside of cryptocurrency ecosystem) to trade bitcoin.

    I understand that this contract does not affect the price of the bitcoin inself, what I mean by that is when you buy a future contract, you don’t actually buy a 5 bitcoin, it is just speculative position, so if there are many buyer of future contract that does not mean the bitcoin is going to up, right? the same for seller. Because they just going to take the data from exchange but they don’t actually interfere with bitcoin price. please confirm that?

    • That is how I understand it.  But you know there are big money guys buying up Bitcoin right now getting ready to short it and will dump their holding to make a lot more money in the futures market.  – that will be when I look to buy more bitcoin.  I’m expecting a major drop that will shock us all to the core in the next 3 months.  Be ready to back up the truck….if your a long term believer in Bitcoin.

    • Price action is fine the way it is now. I’m making a killing. But I never made a dime trading futures. Why? I now know that it was because I was overleveraged and couldn’t withstand even the smallest move against my position. Plus there’s tons of manipulation in the futures markets. I don’t think it will be good for bitcoin. It definitely won’t be good for me.

  3. How many people can say they own 100s of Bitcoin. Well we have a chance not. Checkout BTCRED Bitcoin RED. So low Price and rising everyday. A Bitcoin with Ether Tech.

    • Hmm.. I visited their site and there is no info on the team.. Plus they use bad english and no real info on their roadmap… Seems to me like they’re just trying to rip off the Bitcoin brand to create a coin that already has top rank competition :/

    • Crypto Bucks that’s the game. The team I’d trying to be anonymous like Satoshi. And who know it can be them. And the roadmap is gonna change soon. Visit their Twitter. What I am looking for is to buy cheap and sell high.

    • Crypto Bucks get your to man. In Cryptos tech doesn’t pay till it’s proven but name does. Tell me why is kyber so high without a working prototype, because it’s backed by the founder of etherium.

  4. Man you summarized the whole things in 10 min, before your video I watch a lot of videos and I didn’t get it. plz keep making videos, I got sick of those creepy youtubers out there with bad accent and poor info.

  5. Bitcoin has no future, it is old tech. Eyeon IOTA and IOTA-like coin. No mining, no fees, no scalable problems, no huge electricity power comsumption.

  6. Basically it’s the rats getting in on the cryptocurrency world. I recently watched ‘The Big Short’ about the rat-baggery of the housing and loans equity leveraging that crashed wall street in 2008. This bitcoin futures trading looks to me like exactly the same rats wanting to leverage even worse the money of the gullible.
    I don’t think this magnifies the admirable ‘survival of the fittest’. I think it feeds the reptile rats on the bodies of the humans.

  7. I feel futures will add credibility to bitcoin which will help drive it and other coins to mainstream use. Credibility is always a good thing.

  8. Will be very positive. More people will want to go long than short so there will initially be a premium on futures vs. ‘physical’ markets. This will incent new players in the market that I will call custodians. They will buy and secure large amounts in the ‘physical’ market and sell rolling futures against it (taking no price risk). The premium on the futures will be a combination of the time value of money and the custodial fee. As the custodians scale up this process it will drive bitcoin to new heights. Custodial services have been the missing link. Futures facilitates the payment of custodial services enabling a massive amount of institutional buying. Easy triple on bitcoin price in the next 6 months to over $20k imo.

  9. No I dont it is a good thing…
    Like being at a party and halfway through a bunch of thugs show up, grab what they want, create mayhem and ruin everything for everyone else.
    Thanks for your videos and information. You explain everything very well. You make a very good teacher.

  10. Actually BYE BYE futures coinbase just announced institutional accounts! This Weill demolish the futures of crypto , not sure who the hell would buy a bitcoin future anyways why not just go an exchange or place like coinbase or anywhere and go buy some dam bitcoin

    • Monero is THE coin for the future forget bitcoin and put your money on the cryptocoin that still have the features witch bitcoin was ment to be

      there are no other privacy enabled cryptos like monero – essentially, all others (zcash, dash) are bitcoin blockchains, with an option to ‘go private’ or have various forms of ‘coin-mixing’ algorithms, – all of which have many fundamental problems associated with them that are core to ‘what they are’ – a public blockchain asset that tries to hide itself sometimes.

      monero is unique in how it approaches transactions. it is essentially born anonymous with the option to occasionally announce your transaction to the world if you want. it cannot be hacked or reverse enginerred for identity because that data -does not exist- like it does in btc-like blockchains

  11. I am creating a new currency out of a special bean. I will only grow so many of these beans. Who wants in?

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