In the first edition of CRYPTO TREND we have introduced Cryptocurrency (CC) and answered various 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 glimpse of how new and exciting this market place is:
The world’s largest futures exchange to create a futures contract for Bitcoin
Terry Duffy, president of the Chicago Mercantile Exchange (CME), said: “I think you’ll see us in the second week of December. [bitcoin futures] Deal out for list. Today you can’t shorten bitcoin, so that’s the only way it can go. You either buy it or sell it to someone else. So you create a two-way market, I think it’s always more effective. “
The CME regulator plans to launch Bitcoin Futures by the end of the year pending review. If successful, it will give investors an effective way to go “long” or “short” in Bitcoin. Some sellers of exchange-traded funds have also filed for Bitcoin ETFs which track Bitcoin futures.
These developments are likely to allow CC to invest in the cryptocurrency space without full ownership of CC or without using the services of CC Exchange. Bitcoin Futures can make digital assets more useful by allowing users and intermediaries to hedge their overseas-exchange risk. This may increase the acceptance of cryptocurrency by traders who want to accept Bitcoin payments but are wary of its volatile value. Institutional investors are also accustomed to trading regulated futures, which is not plagued by money laundering concerns.
The move by CME also suggests that Bitcoin has become too big to ignore, as the exchange appears to have canceled crypto futures in the recent past. Bitcoin is all about brokerage and trading firms that have suffered in a growing but unusually quiet market. If the futures of an exchange are closed, it will be almost impossible for another exchange like CME to capture it, as scale and liquidity are important in the derivatives market.
“You can’t ignore the fact that it’s becoming a story that won’t go away,” Duffy said in an interview with CNBC. There are “mainstream companies” who want access to Bitcoin and there is “huge paint-up demand” from clients, he said. Daphne thinks that bringing Bitcoin into the market by institutional traders can make it less volatile.
Japanese village to use cryptocurrency to raise capital for municipal revival
The Japanese village of Nishiyavakura is researching the idea of having an initial currency offer (ICO) to raise capital for the revitalization of the municipality. This is a very fancy approach, and they can ask for help from the national government or private investment. Several ICOs have had serious problems, and many investors are skeptical that any new tokens will be worth it, especially if the ICO turns into another joke or scandal. Bitcoin was certainly no joke.
Initial Currency Offer – (ICO)
We didn’t mention ICO in the first version of Crypto Trend, so let’s talk about it now. Unlike the initial public offering (IPO), where a company has an actual product or service for sale and you want to buy shares of their company, an ICO can be for anyone who wants to start with the intention of creating a new blockchain project. A new token in their chain. The ICO is uncontrolled and there have been several complete shutdowns. A legitimate ICO, however, can raise a lot of cash to fund a new blockchain project and network. It is common for an ICO to create a high token value near the beginning and then soon return to reality. Because having an ICO is relatively easy if you know the technology and have some money, there have been many and today we have about 800 tokens. All these tokens have a name, they are all cryptocurrencies, and with the exception of very well known tokens like Bitcoin, Etherium and Lightcoin, they are called alt-coins. Crypto Trends does not recommend participating in ICOs at this time, as the risk is extremely high.
As we said in Issue 1, this market is now “Wild West” and we are advising caution. Some investors and early adopters have made huge profits in this market space; However, there are many who have lost a lot or everything. Governments are considering regulations because they want to know about every transaction so that all of them are taxed. They all have huge debts and are stuck for cash.
So far, the cryptocurrency market has avoided the financial problems and shortcomings of many government and conventional banks, and blockchain technology has the potential to solve many more problems.
One of the great features of Bitcoin is that the entrepreneurs chose a limited number of coins that could ever be made – 21 million – thus ensuring that the cryptocurrency would never inflate. The government can print as much money (fiat currency) as it wants and inflate their currency till death.
Future articles will discuss specific recommendations, however, make no mistake, the initial investment in this sector is only for your most speculative capital, money that you may lose.
If you are ready to invest in this market space then Crypto Trend will be your guide.