However, this move can be compared to the introduction of a similar product just before the Tulip bubble in the 17th century.
The Tulip craze in the Netherlands saw the price of the flower go to dizzy heights - this resulted in a crash of that market in 1637.
The cash settled futures contract which means that the cash is to be delivered upon expiry of the contract.
As the CME said this week that it plans to launch Bitcoin Futures in the last quarter or early 2018 subject to regulatory review - those futures will be based on cash settlements too.
The issues with the cash settled contracts for Tulip and now a similar Bitcoin Futures Contracts puts a doubt in the minds of the Bitcoin Community whether there would be a similar crash like Tulips in 1637.
So to summarize, this seems like a ploy to kill Bitcoin and the Digital Tokens Market as a whole since the Crypto Markets are moving by leaps and bounds and this is a big threat to the business of the bankers.
Hence, this will become the Survival Of The Fittest - it seems this is just a last chance for the bankers - if they fail they will be wiped out completely and De-centralized Currency will prevail Worldwide.
Bitcoin Hardfork
Here are a few Q&A of the Bitcoin Hardfork :-
When will the fork happen?
The Bitcoin Hardfork is supposed to take place on - November 16, 2017 at 05:42 GMT - however the actual details can be checked on the SegWit2 website.
Why this split?
As there is a disagreement between the key stakeholders over the update of the Core Software that runs Bitcoin - there is a fight to double the size of blocks of Bitcoin.
These blocks are added every 10 minutes and these blocks serve as a record of all Bitcoin transactions to create a permanent blockchain ledger.
There have been Bitcoin forks earlier notably Bitcoin Cash - Bitcoin Gold, however, the original Bitcoin has not been affected. This time it's different.
Who is supporting this Fork?
This fork is supported by consortium of Bitcoin Miners who are the advocates for the bigger blocks (B2X) who earn bitcoins.
They argue that bigger blocks are needed for the rapid growth of Bitcoin Network and reduce the transaction fees.
These Miner consortium's are being backed by Companies that provide eco-system that supports Bitcoin.
Who is opposing it?
There is an opposition to this fork by the developers of the core software as they consider this fork as a Corporate takeover of Bitcoin. There is also a doubt in the mind of the developers that they are trying to set Bitcoin on a path of Centralization by making it difficult for people to run the nodes.
What version of Bitcoin will prevail?
No one really is sure - if most miners get behind the proposed split and stay behind it then the big block version will become the version of Bitcoin.
Hence, if the market continues to support the original Bitcoin then the miners certainly will go back to the smaller version if it is profitable.
The real picture will be known only after the split happens.
What is the scope of current Bitcoin holders?
If Bitcoin fork goes through the existing Bitcoin holders, they will also get equal B2X tokens as this has been confirmed by Coinbase and other major exchanges that they will accommodate both the versions of the blockchain.
Free money to all the Bitcoin holders as you will happen to wake up in the morning with digital assets you did not own a day earlier.
Any further information feel free to contact me via email : contact@fundsmagnet.com
Cheerful Weekend!
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