Just the word, "Derivatives," carries a negative connotation with it - to me. It's almost like another name for FIAT currency. It's fake, it's paper, it's "based" on BitCoin - but it is not BitCoin.

This is what has happened to the Gold & SIlver markets: right now, there's something like 200 paper silver contracts out there on the market, for every 1 oz. of bullion held in reserve. This enables market manipulators to destroy the value of silver, whenever they feel like dumping massive amounts of paper contracts out onto the market - it crashes the prices of precious metals.

I fail to see how this is "good" for BitCoin. This is going to be a way for the central banksters to manipulate the value of BitCoin, which may just end up devaluing the true value of blockchain technology. It undermines everything cryptocurrencies are about: proof of stake, trust in an assets true value, transparency, and authenticity - all of these things are destroyed by the derivatives markets.

That being said - there does have to be some kind of a way for cryptocurrencies to "meld" with the mainstream marketplaces. Hopefully more and more people will be exposed to the true value and potential of the blockchain for making the markets honest again, and helping to provide a much more accurate tool for price prediction - and less room for speculators to jack the prices of assets around.

I have faith in the blockchain, though. It is resistant to hacking & is resilient by its' very nature. If this helps more and more people become aware of its' superior qualities, then this is a good thing. I just hope we don't end up with a situation where the banksters can crash the price of BitCoin, at will.

Upvoted and Resteemed.