The history of Bitcoin futures and what you need to know about them

Many people don't know that Bitcoin futures were originally introduced to allow investors to bet on the price of Bitcoin without actually owning it. In other words, if you believe the price of Bitcoin will go up and you want to buy something but don't want to pay for it, you can short Bitcoin futures. Although you don't actually own a physical bitcoin, you can earn interest by borrowing bitcoin and later buying it back at the price you paid for it.

The idea behind it was that people could speculate with Bitcoin without owning it themselves. And it worked! His first two years of trading were very successful for his CME and CBOE. The company's average daily trading volume increased by more than 300% each year until peaking in 2017, surpassing his $400 billion average daily trading volume, established just two years ago. almost double the previous record.

However, since 2017, things have accelerated as regulators began cracking down on what they see as excessive speculation among retail investors using these platforms to bet on other people's money rather than investing themselves. changed to As a result, many exchanges have stopped offering bitcoin futures altogether, while others have not.