Antonopoulos: Bitcoin futures traders liquidated in cash may take risks
Antonopoulos warns that Bitcoin futures traders liquidated in cash can take risks of unlimited potential.
Andreas Antonopoulos, the Bitcoin educator (BTC), says that cryptocurrency futures liquidated in cash could bring risks. He claims that, although they can put a brake on the price of digital currency, the bets are different than one might think. During an interview with the YouTuber “Ivan on Tech”, Antonopoulos made his fears public. He argued against common fears about the adverse impact of the price that Bitcoin futures trading has on spot prices.
The focus of his premise was that it is the speculators, not the HODLers, who really have something to fear.
Bitcoin futures traded on the Chicago Mercantile Exchange (CME) and the Chicago Board of Exchange (CBOE) have raised suspicions. This is because many argue that the price of Bitcoin is vulnerable to manipulation of contractual agreements. In fact, in the interview Antonopoulos mentioned that:
“We know for sure that when the Bitcoin bubble began to increase really fast in 2017, the US Treasury decided to accelerate the implementation of futures markets to stop that bubble. ”
However, he clarified that “many people see it as a conspiracy, but if you look at the mandate of institutions such as the Treasury, that is really their job.”
The crypto analyst assured that price suppression is not a matter of conspiracy. Instead, it is a market-based approach to allow those who do not believe in digital currencies to take an opposite position when shortening.
This has reduced both the price and the volatility of the asset.
A big risk
It is undeniable to admit that there are risks in the crypto industry. But, for Antonopoulos, there are some riskier situations than others. For example, according to the analyst, it is really dangerous to try to get involved with Bitcoin futures liquidated in cash. Mainly because the potential risk of unlimited.
“If they (institutional investors) faced a renewed Bitcoin bubble situation and continued to adopt an opposite position against the market, they would be throwing fiat into a black hole.”
There are already platforms that are implementing Bitcoin futures settled in cash. As reported, the Bakkt platform of Intercontinental Exchange (ICE) has recently confirmed its next launch of a Bitcoin (BTC) futures contract settled in cash.
Despite Antonopoulos’ warnings, it seems that most of the platforms that operate with Bitcoin futures point towards cash settlement.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.