Why is physical Bitcoin better than derivatives?
Revolut, plus500, TMS Brokers, XTB .... All these companies advertise themselves as intermediaries in buying bitcoin. The truth is, however, that buying real bitcoin on these platforms is impossible. What is possible, however, is to play a rule-based game with a broker where only one can win. Read the article below and check for yourself why you should have real bitcoin.
The easy way out is not always the best. By buying bitcoin derivatives we are choosing to invest in an asset the we do not own. The risk is therefore increased while the expected return is not.
Bitcoin is the first, economical application of blockchain technology. Comparing it to traditional money, it does not base its value on the credibility of the issuer, but only on a social contract that we 'sign' by purchasing bitcoin and creating our address within the network. The omission of the intermediary role increases the certainty of the relationship by excluding a link in a chain that very often has different interests from the general public.
ETF, from English is Exchange Traded Fund. It is a publicly traded financial institution that aims to reflect the value of an asset or stock market index. A bitcoin ETF is therefore a security that gives the illusion of owning a bitcoin.
Futures are derivative transactions concluded on the market. They consists of setting a certain date and price in the future at which the asset would be valued. Depending on the future price the person buying the contract will either make or lose money. It consists in setting the terms of buying a sale at a fixed price at a certain point in the future. In a shallow potential Futures issuers to manipulate the rate of digital currencies in such a way that the futures favorable to the issuer are realized, to the detriment of the buyer.
Bitcoin as a concept by Satoshi Nakamoto was created to allow people to directly exchange values with each other, without having to use the authority of a third party. This means that attempting to introduce bitcoin-based derivatives is a clear breach of the social contract that was initiated by the Bitcoin Creator. Ideology, however, it is only one reason why you should own real bitcoin. The remaining ones include:
Bitcoin derivatives are very often compared to paper gold. Gold can be possessed in several forms. The most commonly associated of them is gold in physical form, most often it takes the shape of bars or coins. Unfortunately, unlike the bitcoin market, participants in the precious ores market allowed them to manipulate their industry by enabling the introduction of paper gold. Paper gold is a contract, written on paper, that 'guarantees' the payment of an equivalent amount. The effect is that there is many times more gold in circulation than all gold on earth, and the system of derivatives on this gold serves only to regulate the rate of gold in physical form.