Bitcoin futures (did not) create the chaos people were hoping for (sorry). 🙇
In my humble opinion...
here's your answer to the fiat vs. crypto debate.
Fiat is to gold as lightning network is to Bitcoin.
Fiat was effectively a layer 2 solution to scaling gold. It was backed and settled to gold until that backing was removed. Unlike fiat though, LN's settlement to Bitcoin is cryptographically secured and cannot be removed!
— Charlie Lee [LTC] (@SatoshiLite) December 10, 2017
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Bitcoin futures were released last night, and Bitcoin's price ultimately spiked, rather than crash (we're looking at you, naysayers). Scalability growing pains are being felt all around.
Christmas seems to have come early in the form of CBOE's Bitcoin futures contracts, which were released last night at 6 PM EST. Naturally, the CBOE website crashed almost immediately from heavy traffic use, while Bitcoin's price increased about 10% within the first few minutes of trading. Nice. Bitcoin futures can now be traded under the ticker symbol "XBT," and the first contract expires (cannot be traded after) January 17th. FYI: Under the "symbol" category, the word "F8" corresponds to the month and year the contract expires; F = January, and 8 = 2018. Each contract size is the equivalent to one Bitcoin and is only redeemable for cash. The futures will have no price limit, just a time limit for the order book, and all prices are taken from the crypto exchange Gemini.
After waiting anxiously to see how the markets would react to this new currency, people were somewhat disappointed to see what we in the crypto community would consider 'stability.' Andreas Antonopoulos, Bitcoin evangelist and beloved long-time member of the cryptocurrency space, released a fantastic video delineating how Bitcoin futures work (watch it below). A few takeaways? Miners will the be the ones shorting Bitcoin (we know, a bit surprising) so that they can accurately predict their electricity bills, and stand to gain a lot more than they lose.
It seems that everyone is getting crypto-FOMO; from banks to governments, 2018 is looking to be an epic year in the form of mainstream adoption. Pay attention.
The fear of missing out is strong. There's still a lot of anxiety being passed around online, as no one's quite sure as to how crypto's prices will react in the long term. Those in the more traditional financial world are relieved, hoping it'll help reduce the volatility that Bitcoin has famously established over the past nine years. Others think it will trigger an overall crash, which will result in a correction period of about a year (similar to Bitcoin's previous dip a few years back) and mimic the traditional financial charts, which often begin the year weak and build to a stronger performance. ZeroHedge published an interesting article pointing out that the futures contracts don't precisely follow Satoshi's true vision – whatever that means to you (it's an interesting read, go check it out).
— Bloomberg (@business) December 11, 2017
Finally, some enthusiasts believe that the futures will create a sense of affirmation in the traditional market, allowing the coin to become more liquid and perhaps even spur an ETF (exchange-traded fund) – although a key downside is that this would result in Bitcoin being classified as a security. Hm. Nonetheless, people are somewhat freaked out but mostly fascinated with this early mainstream adoption of Bitcoin. We'll leave you with the thoughts of New York Stock Exchange (NYSE) Chairman, Jeff Sprecher, who said yesterday that he and the exchange, “may be stupid for not being first [to introduce Bitcoin futures]… I don’t have the answers, I wish I knew… I don’t know what to make of cryptocurrencies.” Their reluctance to move towards futures surprised us all since the NYSE was the first to introduce Bitcoin indexes las summer. Bummer.