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RE: How futures contracts are used to manipulate Gold and Bitcoin (and everything else).
How exactly are they going to bring the price down using the future markets if demand of btc is going up and supply is going down?
In a few years btc is going to have less inflation than gold.. Even if the demand just stays the same, it's hard to keep the prices stable..
And we dont even yet talk about spekulation and the possible image of a safe haven in the current rough worldwide financial times..
The market makers do exactly to BTC what they have repeatedly been prosecuted for doing to gold: make large futures orders that they do not execute, which suppress the price, exactly as @le56percent explained. It is this mechanism which was used to drop the price of BTC at it's peak, immediately following the creation of the futures market for BTC.
IIRC, there is yet another case being prosecuted against a multinational bank for exactly this fraud ongoing presently. Financial regulators serially prove this fraud is being perpetrated by banksters, and fail to nominally sentence the individuals and institutions to discourage it.
Also, BTC isn't comparable to gold as an asset, because BTC is liable to numerous mechanisms that can reduce it's value that gold is not, just as fiat isn't comparable to gold as an asset for the same reasons, which is why gold and stocks are inversely price related. BTC is far more akin to fiat than gold as a hedge against inflation, because of it's susceptibility to arbitrary transaction fees that are part of the price of BTC.
Transaction fees rose to as high as 25% during the height of the BTC bubble, essentially rendering BTC impossible of being bought or sold for many. Gold does not necessarily depend on virtual mechanisms for it's sale or purchase, and thus is immune to such transaction fees for capable investors.
Thank you for your comments, always a pleasure to read.
A youtuber named The Crypto Lark released a video today about Bakkt. He gives an updated version since Bakkt is more recent than CME futures. Very straight-forward and easy to understand.
https://invidio.us/watch?v=7k3cBdjo7UA