Source: thedailycoin.org
Dave Kranzler of Investment Research Dynamics just penned an article with his views on the new bitcoin futures contract proposed by the CME. He wrote that the cheers (in favor of this new contract) are analogous to chickens in the barnyard cheering at the appearance of Colonel Sanders.
He cites a GATA article titled 'So Long Cryptos'. This article points out the ability to manipulate precious metals futures contracts by the official entities motivated to SUPPRESS the price of gold is reinforced by the volume trading discounts given from the CME to governments and central banks whom trade on the CME.
Mr. Kranzler reasons that the same discounts will be available to the crypto futures contracts. He stresses that per the CME prospectus it states that this contract will be settle in cash 'only' and he infers that this is contrary to the reasons cryptos were introduced. Weren't the cryptos suppose to be an alternative to the fiat dollar? He correctly states that this is not a bona fide futures contract but a derivative of the index price of Bitcoin.
Mr. Kranzler feels that this new contract maybe a blessing if it diverts trading volume away from gold and silver futures because it may mitigate the ability of the banks to price cap the price of gold and silver.
I posted an article outlining these points and a link to this posting in listed below.
https://steemit.com/crypto/@outwalking/bitcoin-futures-contract
