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‘Father Of HFT’ On Bitcoin Futures: Peterffy Warns CFTC Of ‘Suicidal’ Decision
Well you can count Thomas Peterffy, the billionaire founder and chairman of Interactive Brokers, among those who think Bitcoin futures are an absolutely terrible idea.
And Peterffy is a man who knows a thing or two about terrible ideas that are potentially dangerous, because after all, he's "the father of high frequency trading."
Over the years, Peterffy has variously suggested that HFTs serve to suck liquidity out of the system just when it's needed most (a contention that of course flies
This may or may not be an issue for cryptocurrencies whose commercial/merchant transactions and acceptance represent less than 1% or their total transactions – the other 99% being speculation. If you are like most investors you are still trying to get a more detailed understanding of how cryptocurrencies work, their risks and rewards, and their limitations in the current economy. I highly recommend this seven part series in depth highly detailed expose being written by Paulo Santos on Seeking Alpha now. (https://seekingalpha.com/article/4121499-bitcoin-series-1-basics)
Mr. Dugger is absolutely correct. For investors with more technical training, the book “Bitcoin and Cryptocurreny Technologies; A Comprehensive Introduction,” by Narayanan, Bonneau, et. al provides an excellent understanding of the technology behind Bitcoin and other so-called “cryptocurrencies” without advocating for or against the adoption of such instruments. FWIW, I am also in complete agreement with Mr. Peterfly. This is a market driven by pure sentiment. When you combine high volatility with leverage, the degree of hazard for the unwary increases beyond anything acceptable to the proverbial “prudent man.”