BITCOIN SEASON 2: Can Bitcoin Go Negative? How Bitcoin Futures Contracts Work

Aug 6, 2025

Matt Wraith, CTO of Bitnomial and digital asset futures expert, dives into the complex world of Bitcoin futures. He explains the mechanics behind physical delivery versus cash-settled futures. The conversation highlights how Bitcoin forks create trading opportunities and the unique dynamics of fork futures. Wraith also discusses the looming threat of quantum computing on Bitcoin's security. Listeners gain insights into market structures and the vital role of regulatory compliance in shaping the future of digital assets.

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INSIGHT

Basics of Futures Explained

Futures contracts are agreements to buy or sell an asset at a specific price on a future date.
They enable hedging price risk and allow for market speculation on price movements.

ANECDOTE

Oil Futures Went Negative

Oil futures went negative in March 2020 because physical storage was full.
People were paying others to take oil barrels, showing the impact of storage costs on futures.

INSIGHT

Bitcoin Futures Physical Delivery

Bitcoin futures differ because Bitcoin has no physical storage cost.
Our futures use a settlement facility model similar to oil where Bitcoin is pooled and distributed.

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