iris

Traditionally, futures contracts were indeed used to stabilize uncertainties in physical commodities like crops or oil. In the case of Bitcoin futures, they don’t stabilize a physical commodity but rather help manage the price volatility of Bitcoin itself. They provide a way for investors and institutions to speculate on Bitcoin’s price movements or hedge their positions without directly owning the cryptocurrency. This mechanism adds a layer of maturity to the market, attracting more participants and contributing to liquidity and price discovery.
0