years is that the CFTC, the Treasury, the SEC and… Gary Cohn (the National Economic Council director at the time) believed that the launch of bitcoin futures would have the impact of popping the bitcoin bubble. And it worked,”
He further explained that in a market with only belivers there was a need for a balance where pessimists can express their opinion, but they can’t so we accepted the creation of CME and CBOE futures. This derivative product allowed bitcoin pessimists to place their bets creating a more free market.
“If you don’t have that derivative, then all you’ve got are believers [and]it’s a believers’ market.” He said.
Giancarlo concluded the interview saying:
“I believe it shows the power of markets to bring discipline to prices.”
However, taking all the credit seems a bit a long shot. Bitcoin retraced 85-90% after every bubble. And speaking about derivative markets, Bitmex, a platform for the pessimists to short bitcoin was available from 2014. However bitcoin dice is maybe is not considered a regulated trading platform, but eToro is a regulated one and it allowed shorting bitcoin since 2014.
But maybe these 2 platforms were unable to pop the bitcoin bubble because …