Sunday, November 26, 2017

Opinion - Futures Trading will Fuel Rise In Bitcoin Prices Beyond Imagination

I have seen many people want to short Bitcoin (BTC) when futures start trading and I think it's just stupid.

People who understand BTC know that it is very easy to pump up the price by flooding the market with big money. This asset is not created with big money in mind. Conversely, it is extremely difficult to make the price drop unless you have accumulated a large amount of BTC to dump, and even then there are many new buyers and funds waiting to buy the dip as previous corrections have shown. 

The introduction of BTC futures provide big money easy access and leverage to an asset that can be easily manipulated. The derivatives market is much bigger than BTC or any other cryptocurrency.

The unregulated nature of cryptocurrency means that all the illegal manipulation activities will happen. Huge positions can be taken up by big money in the futures market and the BTC market can be easily moved to achieve maximum profits.

In view that it is easier to push prices up than down and big money is being presented a rare opportunity to make crazy profits with no supervision, I can only conclude that BTC will hit prices beyond our imagination.

I don't think predictions of 20K, 100K or 200K are ridiculous at all if you understand the immense power of human greed.

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