Lets say hypothetically you decide to buy a BTC future as you calculate that you will make 10x return if BTC doubles again in the next 6 months. Its a good risk weighted bet right?
WRONG! Heres why.
You will be paid out in fiat. If btc doubles in the next six months, recognize that means fiat is worthless and BTC wins. In this (admittadely extreme) mindset, fake fiat money will be used to keep BTC supporters from holding actual BTC.
To me, allowing BTC futures signals that the powers that be are attempting a last ditch effort to slow BTC's growth and the downfall of fiat. It will result in BTC's exponential growth to go more exponential or for the growth to stop. At the extreme, buying BTC futures will result in one of two scenarios:
1) Money that was destined to bringing the price of BTC up is channelled to futures (which billionaires can back with puts relatively limitlessly), quelling upwards pressure of BTC itself, causing BTC price to steady.
2) BTC goes up even more exponentially, and the payouts for your futures contracts are meaningless anyway, as you will be paid in fiat.
Any criticism of my arguments are appreciated or if you can formulate the idea better, please share!
TLDR: If you are a fiat billionaire, it would make sense to stop bitcoin growth by offering to sell BTC futures at really cheap rates. This will ensure new money doesn't make it to BTC exchanges where BTC quantities are limited. Offering unlimited cheap BTC futures takes the wind out of BTC's sails.
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