In the first edition of CRYPTO TREND we introduced Crypto Currency (CC) and answered many questions about this new market space. There is a lot of NEWS in this market every day. Here are some highlights that give us a brief look at how new and exciting this market place is:
The largest futures exchange in the world to create a futures contract for Bitcoin
Terry Duffy, president of the Chicago Mercantile Exchange (CME) said “I think sometimes in the second week of December you see our [bitcoin futures] contract for listing. Today you can’t shorten bitcoin, so there’s only one way to do it. You can buy it or sell it to others. So you create a two -sided market, I think it’s always more efficient. ”
CME intends to launch Bitcoin futures by the end of the year pending a regulatory review. If successful, it will give investors a practical way to go “high” or “short” on Bitcoin. Other traders of Exchange-Traded Funds have also filed for bitcoin ETFs that track the future of bitcoin.
These advances have the potential to allow people to invest in the crypto currency space without directly owning CC, or using the services of a CC exchange. The future of Bitcoin will make the digital asset more profitable by allowing users and intermediaries to hedge their foreign exchange risks. That will increase cryptocurrency adoption by traders who want to accept bitcoin payments but are wary of its unchanging value. Institutional investors are also used to trading regulated futures, unaffected by money laundering concerns.
The CME move also suggests that bitcoin has become too big to ignore, as the exchange seems to have held back the futures of crypto in the recent past. Bitcoin is just all that is discussed by any of the brokerages and trading firms, which suffer amid rising but not usually peaceful markets. If the future of an exchange, it is almost impossible for any other exchange, such as CME, to reach, because size and liquidity are important in derivatives markets.
“You can’t ignore the fact that it’s become so much more of a story that won’t go away,” Duffy said in a CNBC interview. There are “mainstream companies” that want to access bitcoin and there is a “huge demand” from clients, he said. Duffy also thinks that bringing institutional traders to the market will make bitcoin less volatile.
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Japanese village to use crypto currency to raise capital for municipal transformation
The village of Nishiawakura in Japan is researching the idea of conducting an Initial Coin Offering (ICO) to raise capital for the revitalization of the municipality. This is a very new approach, and they can ask for national government support or ask for private investment. Many ICOs have serious problems, and many investors doubt that any new token has any value, especially if the ICO turns out to be another joke or scam. Bitcoin is definitely not a joke.
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INITIAL SENTENCE – (ICO)
We didn’t mention ICO in the first edition of Crypto Trend, so let’s talk about it now. Unlike an Initial Public Offering (IPO), where a company has an actual product or service being sold and you want to buy shares in their company, an ICO can be held by anyone who wants to start one. new Blockchain project with the purpose of creating. a new sign in their chain. ICOs are unregulated and several have become total shams. A legitimate ICO can instead raise a lot of money to fund the new Blockchain project and network. It is common for an ICO to generate a high token price near the start and then sink back into reality soon after. Because an ICO is easy to maintain if you know the technology and have some money, there is a lot, and now we have about 800 tokens to play with. All of these tokens have a name, they are all crypto currency, and apart from the very well-known tokens, such as Bitcoin, Ethereum, and Litecoin, they are called alt-coins. At this time Crypto Trend does not recommend joining an ICO, as the risks are extremely high.
As we said in Issue 1, this market is the “wild west” right now, and we recommend caution. Other investors and early adopters have made huge profits in this market space; however, there are many who have lost much, or all. Governments consider regulations, because they want to know the nature of each transaction so they can tax them all. They all have huge debts and are tied up for money.
Currently, the crypto currency market avoids many government and conventional banking financial problems and pitfalls, and Blockchain technology has the potential to solve many problems.
A good feature of Bitcoin is that the creators choose a limited number of coins that can be produced – 21 million – thus ensuring that this crypto coin is never raised. Governments can print as much money (fiat currency) as they want and hoard their money until they die.
Future articles will examine specific recommendations, however, make no mistake, early investing in this sector is only for your most speculative capital, money you may lose.
CRYPTO TREND can be your guide when and when you are ready to invest in this market space.