Bitcoin futures trading could burst the cryptocurrency

Article Last updated on: 13-11-2019

Wondering to know the reason behind the Bitcoin futures trading? If yes, then, you are absolutely in the perfect place.

We all know that Bitcoin is the hottest and most trending subject of discussion among the people nowadays, especially youth of the current generation, and so, it is very obvious to have inquisitive to know that how bitcoin futures could burst the cryptocurrency’s bubble.

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Let us have a brief discussion over it.

Bitcoin and Chicago board of exchange:

When the Chicago Board of exchange became the first major derivative to exchange to launch Bitcoin futures on December 10, then, the endless Bitcoin mania became more attractive. When the price movements were excessive, then, trading was halted twice due to CBOE speed breakers.

The Chicago Mercantile Exchange(CME) group followed the launch of Bitcoin futures at CBOE. Nasdaq is also preparing for a similar launch in the second-half of 2018.

Bitcoins futures allow traders to conjecture about the price of Bitcoin later.  Let us consider a real-life situation, the January contract for Bitcoin was trading around US$18,300, up from an opening price of US$15,000. Along with Bitcoin, you can also use altcoins for margin trading, for instance you can trade ripple futures on exchanges like Delta.

At the launch of the futures, there was such a high enthusiasm that the Bitcoin price touched an all-time high of US$17,382.64 after one day of CBOE trading. After hearing this, bitcoin lovers may feel very happy, but it could lead to failure for the cryptocurrency for a long run.

It would probably have been possible that bitcoin future may end up lowering the price of Bitcoin. Future trading brings a number of new choices for the investors to bet against Bitcoin and also allows them to settle the contracts in dollars.

Futures lessons:

Though the crypto futures is new to the people as well as market, we must be aware of the futures contract trading dates back to ancient times.

In 1750 BC in Mesopotamia the Babylonian king, Hammurabi, introduced a legal code, the code consisted stipulations for trading goods at a future date for an agreed-upon price.

A good contract can easily be understood in terms of buying and selling an asset at a future date at the decided amount. One party to the contract agrees to buy a given quantity of the asset (such as stocks or bonds) or commodities (oil, gold, Bitcoin), and take the delivery on a future date while the other party agrees to deliver the asset.

Here come some new terms, “Hedgers” and “Speculators”. These both are involved in future markets. Hedgers are concerned about saving and protecting themselves from future price drops, they buy or sell the asset. They lock the price of the commodity at no risk of dropping it.

On the other hand, speculators make assumptions. They assume the possible risks. In case if the market goes against them, then, they will lose more than that if they have earned.

The rise of Bitcoins and other cryptocurrencies:

One of the most trending and popular stories of 2017 was a drastic rise in Bitcoin, not only Bitcoins, Other forms of cryptocurrencies as well.

At the beginning of the year 2017, the cost of bitcoin was still under $1,000 before beginning a meteoric rise that would peak in December at just under $20,000. Then, the price of bitcoin and other cryptocurrencies fell off. In 2018 alone, bitcoin prices started at $12,000, spiked to above $17,000, dropped down to just a shade over $7,000, before rising back to $10,000.

Because of continuous rise and fall of the price of cryptocurrencies, some believers such as Xapo CEO Wences Casares predicts that bitcoin prices could go as high as $1 million while the investor Warren Buffett believes cryptocurrencies will not have a good ending.

Well, nothing can be predicted according to the current scenario as nobody knows the future. There may or may not be a good ending of cryptocurrencies, this is something beyond assumption as well as imagination.

Final words:

So, this was all about Bitcoin futures and how Bitcoin futures trading could burst the cryptocurrency’s bubble.

Here, we covered all the necessary details regarding the subject such as CBOE plans and decisions, future lessons, the rise of Bitcoins and other cryptocurrencies and some other assumptions and predictions related to bitcoin futures.

We tried our best to give you all the required details about the Bitcoins futures. If you still have any doubts or queries, just feel free to contact and ask us. If you have some other details regarding the subject or some other assumptions which you think can be a part of the content, must share with us. It will be good to have a two-way conversation.

Hope the content must have helped you.




90% of People Mess This Up When It Comes to Finances

Hey what’s up everyone. Davey Pockets here, man of the financial frontier. Here to help you increase your financial IQ, grow your passive income, and increase your net worth. Today we are going to talk about something that 90% of people mess up when it comes to finances.

So what is that almost all people get wrong? It’s School IQ vs. Financial IQ and which is more important.

If you don’t believe me on the numbers ask yourself these following questions-

How many people do you know are saving up to send their kids to college?

How many people do you know are saving up to send their kids to financial seminars, programs, and classes?

If you had to choose which would you rather have- A child who was a high school valedictorian, college graduate of Harvard with a Master’s and Doctorate degree but with NO MONEY.

Or a child who started buying assets right out of high school, that has an inexhaustible monthly passive income and can choose to work or not.

If the previous financial example sounds a bit extreme it is meant to be. However, just realize that it is not unrealistic. In fact all across the US today there are people stashing money away for college and tons of graduates stuck with a mountain of BAD debt from student loans.

At the same time we have a record number of millionaires and young entrepreneur’s who are financially set for life due to their high financial IQ.

So which is more important? School IQ or Financial IQ?

As a former high school teacher, I must say one of the biggest flaws in our school system is that it teaches you to be an employee. If you want to be rich, school is not the place to learn. Being an employee you will fall into a very unfavorable tax situation and even worse the more money you make via a pay raise, the more money the government will get from your taxes. More about how to save money on taxes here.

So what if you did learn about money in school?

Most schools do have a few basic courses- You may learn how to balance a checkbook or budget your rent, but you won’t learn how money actually works.

So you aren’t really increasing your financial IQ when learning these things. At best you are just honing your calculating and math skills.

Another problem with only being school smart is that we start out being told what to do and are rewarded for complying. This makes for a simple transition from a school to a job where someone else tells you what to do. That leads us to automatically trusting the government and the bankers who handle things such as a 401k. If you want to know more about why a 401k is such a bad idea click here.

The top 10% use their financial IQ to make themselves richer and richer. While the bottom 90% think they are getting richer by investing in their school IQ aka higher education. But then they complain when gas prices go up, turn to extreme couponing for groceries, and a large student debt to payoff from their “investment?” in higher education. Yet this strategy is supposedly ideal for them and they get the feeling they are doing the right thing…

The journey to financial freedom and a higher financial IQ starts with the ability to think and act for yourself.

So have you decided? Which would you rather have?

A very high financial IQ or a very high school IQ?

Be sure to share your thoughts in the comments section.

As always thank you for reading and subscribing and stay tuned for more money and mind expanding tips!




5 Top Blogs On Finance

Hey what’s up everyone. Davey Pockets here, man of the financial frontier. Today we are going to talk about some other great blogs on finance.

Having a finance blog of my own, I can say that there really are some amazing personal finance blogs available to you out there. This is especially true if you want to learn things such as- how and where to invest, how to make money on the internet, and many other great topics and ideas.

If this is what you are looking for then you will want to check out these Top Personal Finance Blogs!

  1. One of my all time favorite blogs on finance and he has some really good ideas to get you thinking outside the box such as why paying off your mortgage early is silly!
  2. This is arguably one of the best blogs on finance as well. Here you will find many great ideas on how to spend less and save more. You will also find my personal favorite posts where he asks the reader’s things such as how and where to invest. Also has a pretty cool 10 questions and a pizza place guest post for other blogs on finance.
  3. Another one of the coolest blogs on finance on the internet. I highly suggest this blog if you are thinking how to begin investing in stocks. You will find a lot of tips of how and where to invest. As well as many great dividend paying stocks that can help make you some money right away!
  4. Mr.MoneyMustache- Mr. Money Mustache has to be the most unique blogs on finance available. His cool and refreshing writing style comes through on every single post, making this one of the top personal finance blogs.
  5. J Money has another one of my favorite blogs on finance. Here you will find many great ideas such as budgeting and “side hustle” also known as making money on the side!

That’s all the personal finance blogs I am going to leave you with today. In my opinion these are the top personal finance blogs you will find and just reading through their posts can make a huge impact on your personal finances as it did for me!

Don’t see your blog listed here? Feel free to share in the comments other personal finance blogs readers may want to see!

Also thank you to our new readers here! Have seen quiet an uptick in viewers and readers here at which is really exciting!

Thinking of making money blogging yourself? Sign-up today and receive a free month of coaching from Evan Louis to get you started!



Hi everyone, Evan Louis here. Man of thee danetidwell.

Today we are going to talk more about 401k investments and why they may not be the best. This is a continuation of the post you will find here.

Here’s an interesting example most people do not consider when it comes to a 401k-
Let’s say person A, we’ll call Tim. Tim does not put money in 401k. Instead he blows it on a million dollar mansion with a pool, basketball court, and the whole bit. Timmy, after 40 years of hard work gets a heart attack and dies. His heirs and children are left with a huge mansion to sell. They sell it a few weeks later and how much are they taxed on their inheritance of the sale?

If you guessed $0, then you got it right. Kind of ironic since buying a huge home is not a wise financial decision, but even it can have an advantage over a 401k.

Now let’s say person B, we’ll call Rhonda. Rhonda on the other hand is 401k fanatic. She loves putting away $100 a month in her account. Unfortunately, just like Timmy she has the awful fate of heart attack. For example sake we will say she works the same 40 years at the same job at the same pay and dies the same day. Instead of ever buying the huge mansion she is “smart” by putting it in her 401k and she leaves $1,000,000 to her heirs. Can her heirs and children get the money out? Yes, but not without rules and penalties as to when and how much they cab withdraw.

Are they taxed on the million? Yes. Ooof!

One final point on 401k’s before you decide if they are the right investment for you.

Let’s say you do follow the Suze Orman plan but you don’t start socking away the $100 a month until the age 35 instead of starting at age 35.
So basically you save $100 a month for 30 years, 360 months, 131,400 days and how much will you have?
Not a million.
Try $300,000.
You see “the magic” of compound interest does not really work unless you have either A- a large sum of money or B- you have your money withheld from every single paycheck for 40 years!
Also remember that 300,000 is also taxable, in fact typically at a higher tax rate now that you have more money!

If you figure 50% to taxes, that’s $150,000 and even at the poor old age of 65 you still can’t access it all!!

Only small portions and increments that someone else sets the rules and laws for!
At the end of the day it is your money and you have to decide what’s best for you! Obviously putting money in a 401k can be a solid decision at times. It is certainly better than putting it into Beanie Babies or Nascar Collectibles. However, when it comes to the notion of investing and taxes, I think it is time we take a harder look at the facts and consider other alternatives of investing!

Agree with this post? Disagree? Share your opinion in the comments. Thanks for reading and following this blog. Until next time!



Taking Out a Car Loan, Good Idea or Bad Idea? The Surprising Answer..

Hey what’s up everyone. Davey Pockets here, man of the financial frontier. Ready to help you increase your financial IQ, increase your net worth and show you how and where to invest.

For today’s topic we are going to discuss taking out a car loan.

Is taking out a car loan a good idea?

The funny thing is the answer will vary based on your experience with money.

Let’s say for an example someone where to ask you the question- should I do 300lb dead lifts for my workout routine?

Well the answer depends on the person and their experience. If the person is a body building man who has worked out for 5 days a week for 10 years or more then the answer might be YES.

However if the person is a 40 year old mother who just had her 3rd child and has not lifted since high school then the answer is most likely a NO. In this case we might suggest a cardio class to best fit her unique situation.

The one thing I can’t stand is when an infomercial comes on and says something like “cut-up your credit cards and get out of debt? You hear financial advisors such as Suze Orman and Dave Ramsey support this school of thought in their books and programs.

To them the best way to get a cheap car loan, is to pay it off entirely! 100% with cash and have no interest to pay so that you are supposedly at peace financially.

Although this is sound advice to someone who struggles with money or someone who is a beginner. It does not take into effect people who are beyond this beginner level of financial IQ.

You see there is good debt and bad debt. A car can actually be either one depending on your level of financial IQ and what you do with the money.

If you want a big Ford F150 to show off to the guys at work and you have no money to put down on the truck so you are searching for a cheap car loan, this is DEFINITELY bad debt!!

If you are at this level of financial IQ please read and follow the advice of Dave Ramsey. The last thing you want is to take out a loan on something you do not need. Basically you are borrowing money to buy something that takes even more money away from you, also know as a liability.

On the other hand lets say there is an investment opportunity for you with a foreclosed home in your neighborhood. You know that the home is worth $100,000 but it could be had for $50,000 due to seller foreclosure. Let’s also say that you have $10,000 dollars to put down for a down payment, but you already have a lot of your money invested in other things that are making you even more money, also known as assets.

With your current car on it’s last leg, you decide to go out shopping. Rather than buy the truck that you don’t need you find a used economy car with low miles and pick it up for a nice $10,000.

Now you are asked the same question should you take out a car loan?

In this case I say yes. Take out a cheap car loan at 3% and take 100% of the loaned money towards buying a cash flowing asset! Note you must take th money and put it towards an asset. This is the only way the math works.

So let’s say you take money buy the foreclosed home and within a month you have it rented out. After paying your taxes, loan, and property manager to deal with all maintenance and headaches you see a monthly return of 20% on your money!

This is actually a great investment idea because you are now paying back your cheap car loan at 2% and earning 20%, a net gain of 18% on your money without doing any work or even having the money in the first place!

This is one of the best ways to increase your net worth. You can repeat this process in many forms. Using car loans, home loans, rental loans, business loans, private lender loans, etc. The most important thing is that you always make sure the numbers work and that you more than have enough cash to cover it in case the deal goes bad on you. Someone with a high financial IQ will recognize an opportunity like this and totally take advantage of it.

So as you can see the answer of taking out a car loan just really depends on what level of investor you are currently at.

If the thought of more money equals shiny new cars, vacations, and a new watch then the answer is no! Pay cash and stay out of debt!

If the thought of more money equals an opportunity to pick up another cash flowing asset to add to your portfolio then the answer is yes! Bring on the good debt and hello payday!

Agree? Disagree? We love hearing from you in the comments!

Also check out your financial thermostat setting to see more ways to increase your net worth and financial IQ.

Thanks for reading!




Difference between asset and liability.

Hey what’s up everyone. Davey Pockets here, man of the financial frontier. Ready to help you increase your financial IQ, increase your net worth and show you how and where to invest.

For today’s topic we are going to talk about the difference between asset and liability.

Understanding the difference between an asset and liability can make a huge impact in your financial future and drastically increase your net worth.

Just a few short years ago I used to believe that I knew the difference between asset and liability. I was getting along just fine financially. However it seemed like the harder I worked the more I stayed about right where I was. I was not increasing my net worth and I did not understand why. I had always been taught that hard work would put me in a better position financially. Once I realized that my hard work was not going towards the right things then I realized why I was not getting ahead.

You see sometimes it is better to work smarter before you work harder. If all of your hard work is going towards buying liabilities instead of assets then you will not get ahead financially!

To begin with let’s start by defining a liability and an asset.

A liability is something that takes money out of your checking account, out of your net worth, and out of your pocket whether you go to work or not.

An asset it’s something that puts money in your checking account, in your net worth, and in your pocket whether you go to work or not.

So is a house in asset?

I used to think that a house is an asset and in some cases it actually can be. However in most cases a primary home is not an asset.

Let’s go back to the definition- does it take money from my pocket or does it put money does it or does it put money in my pocket?

If I am NOT renting out my primary home and I have to pay the bills on it such as taxes, insurance, electricity, water, heating, natural gas, etc. then my house takes money from my pocket every month whether I go to work or not.

Therefore my house is a liability and in terms of wanting to increase my net worth I would want to find the cheapest, most affordable, most low-cost, most cost efficient home that I could find.

The only way my house could be considered an asset is if I rented out some of the rooms and my renters paid enough monthly rent to cover my taxes, insurance, heating, water, gas and all my bills.

Another item I made a huge mistake on was a motor vehicle. Is it an asset or a liability? Once again it can be both. But in my case my red Dodge Ram was taking money from my pocket every month in the form of maintenance, tires, gas, and oil changes whether I worked or not.

The only way for my truck to have been considered an asset would have been if I was renting it out for others to use and the rent I was being paid was putting more money in my pocket than the expenses were costing me.

So once again if you are wanting to increase your net worth it is ideal to have a low price, very cost efficient, and low maintenance vehicle.

So now you may ask what is an asset? If a house and a car are not assets then what are?

An asset can come in many different forms- dividend paying stocks, a mutual fund, a certificate of deposit, a rental home, a business, intellectual property- such as books, CDs, DVDs, an ebook, a blog, etc. These items require a bit of work in the beginning but once they are setup properly they will put money in your pocket over and over again whether you work or not!

Hopefully after reading this you now have a better feel of the difference between asset and liability. If you understand the difference between asset and liability you will have a much higher financial IQ and a lot better chance of increasing your net worth!

Thank you for reading and subscribing!