Are you hodling bitcoins expecting a bullish trend after Bakkt? What if the future of futures contracts launch holds the unexpected?
Well, I know you guys are very hopeful that Bakkt’s launch will be a bitcoin price booster, so, I am here to remind you that crypto world is the very wild west. As the bitcoin futures contract platform is ready to board the reality in just six days, it seems as if this reality is a mirage.
Bitcoin saw red with Bakkt’s declaration
Bakkt is a full-packed innovative network, I don’t doubt, but what I believe is the negative aspect these innovations carry towards bitcoin and its value. If we move back to when Bakkt was announced in 2018, it accompanied an attack on bitcoin’s price. Further, the second time the platform declared the commencement of its Warehouse services, the digital coin again witnessed a price crash. If Bakkt is much of a revolution, why is it driving to dip bitcoin even before it starts the wheels?
You wonder why? Let me take you to the clues.
Bakkt will promote institutional manipulations
What stands above all is the manipulations that reside in the crypto world. If you think everything is a fair play, you are definitely on the surface with no idea about the dirt in depth. Bakkt, through rendering the futures contract, has opened wide gates for investors. Where Institutional investors favor the bigger, the better, small investors indeed fear the high-risk crypto derivates as the institutions hold manipulative powers. You must embed this fact in your knowledge that institutions will never pay such huge amount to buy the contracts. They are undoubtedly capable of rolling big dices to initiate their win and others’ loss. The possession of enormous domination and capital by big investors is the sole basis of dipping the crypto prices.
Bakkt’s arrival will centralize bitcoin
Moving ahead, Bakkt is entirely skilled to hurt the essence of Bitcoin as it can prove to be fatal to its decentralization. Backed by ICE, the platform beholds the strength of increasing bitcoin’s institutionalization. As the institutional investors holding hands with manipulations can grab the majority of the bitcoins, they can eventually control the coin’s market, harming its sole principle.
Bakkt will counterbalance BTC mining limitation
Simultaneously, Wall Street owns the tendency of controlling the crypto coins. It can ascend its influence through leverage by increasing the claims to the virtual currencies. And, moreover, if it invades to claim without actual bitcoin backing, it can nullify the enforced scarcity of bitcoin which subsists as a significant promoter of its value.
As an investor, would you support blinders or attain a comprehensive view of the upcoming “revolution,” because if we look deeper, the community’s expectations are at odds with the history.
Bitcoin Futures’ history suggests loss
In 2017, the crypto industry experienced the first-ever bitcoin futures contracts. Launched by the Cboe Global Markets and the Chicago Mercantile Exchange Group (CME), the contracts turned to be a bane for the cryptocurrency. After pumping the bitcoin prices to some extent, they, in no time, pushed the valuations in a descending movement.
Along with this, if we look inside the book of Gold futures contracts, we will see the loss. Introduced in 1974 to enhance the valuation of the precious metal, the contracts played an opposing role. Gold prices plunged by 50% and failed to soar to its all-time high value for the next three and a half years.
Short before there is no long
Although the Bakkt’s inauguration is believed to be a giant leap for cryptocurrencies, the platform is assisted with its own box of flaws.
What if this might be the last time bitcoin cross the five-figure resistance? Choose wisely and stay wealthy!