Goldman Sachs to begin operations to trade bitcoin futures contract

The video discusses trading Bitcoin futures contracts, which are legal agreements to buy or sell assets at a predetermined price in the future. Goldman Sachs plans to trade Bitcoin but requires regulatory approval from the Federal Reserve. They must also implement security measures to protect Bitcoin from hackers, a common issue for digital currency exchanges.

What is a Bitcoin futures contract?

• A contract to buy Bitcoin at the current market price.

• A legal agreement to buy and sell Bitcoin at a predetermined price in the future.

• A contract to sell Bitcoin immediately.

• A legal agreement to trade Bitcoin without any price specification.

What must Goldman secure to trade actual Bitcoin in the future?

• A partnership with a digital currency exchange.

• Regulatory approval from the Federal Reserve.

• A new trading platform.

• A large amount of Bitcoin.

Why is regulatory approval necessary for Goldman to trade Bitcoin?

• To gain access to more Bitcoin.

• To reduce transaction fees.

• To increase Bitcoin's market value.

• To ensure compliance with financial regulations.

What is a major risk associated with storing Bitcoin?

• Limited availability.

• Price volatility.

• High transaction fees.

• Theft by hackers.

What has been a common issue faced by digital currency exchanges?

• Inability to process transactions quickly.

• Lack of customer support.

• High operational costs.

• Theft of digital currencies by hackers.