
Ask HN: Bitcoin futures scam? - jotjotzzz
I don&#x27;t understand Bitcoin futures, or how futures work in general. The media keeps publicizing how this now gives &quot;legitimacy&quot; to Bitcoin, like it needed it. It lets people bet on Bitcoin, but they don&#x27;t even own actual Bitcoins? How is this not a Wall Street scam? Please explain.
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bob_theslob646
According to the CBOE

>XBT futures are cash-settled futures contracts that are based on the auction
price of bitcoin in U.S. dollars on the Gemini Exchange. XBT futures are
designed to reflect economic exposure related to the price of bitcoin.
([http://cfe.cboe.com/products/bitcoin-
qrg.pdf](http://cfe.cboe.com/products/bitcoin-qrg.pdf))

I think scam is a harsh word. One feature of trading futures is to hedge or
"lock-in" in the price of btc. What this allows people who actually own
bitcoin or accept it as payment, to reduce uncertainty in the price of it.

Apparently, to the best of my knowledge, when a transaction is initiated it,
it queued in the network. You as a user have no control on what price the
transaction will be cleared at.With futures, you can get more certain so that
the price doesn't fluctuate wildly away from the agreed transaction price.

Where I think you are seeing it as scam, is that the futures are levered
meaning someone can buy a bitcoin on margin, without having to put up the full
notional/total value of the entire bitcoin, up front.

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doug3465
Here
[https://www.youtube.com/watch?v=o7TtwckPCUI&feature=youtu.be](https://www.youtube.com/watch?v=o7TtwckPCUI&feature=youtu.be)

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csomar
Futures are a derivatives. You can use any currency or collateral to trade a
derivative. Why do you want people to own bitcoin in order to bet on it?

