In the first edition of CRYPTO TREND we introduced Crypto Currency (CC) and answered several questions about this new market space. There is a lot of NEWS in this market every day. Below are some highlights that give us a look at the new and exciting space in this market:
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 at some point in the second week of December you’ll see our [bitcoin futures] contract for the list. Bitcoin cannot be shortened today, so there is only one way. Either buy it or sell it to someone else. So create a bilateral market, I think it’s always a lot more efficient. “
CME intends to launch Bitcoin futures later this year pending a regulatory review. If successful, this will provide investors with a viable way to go “long” or “short” to Bitcoin. Some exchange traded fund sellers have also requested bitcoin ETFs that track bitcoin futures.
These developments have the potential to allow people to invest in cryptographic space without having to fully own CC, or use the services of a CC exchange. Bitcoin futures can make digital assets more useful by allowing users and intermediaries to hedge their exchange rate risks. This could increase the adoption of cryptocurrency by traders who want to accept payments with bitcoins, but are wary of its volatile value. Institutional investors are also accustomed to trading regulated futures, which are unaffected by money laundering concerns.
The CME move also suggests that bitcoin has become too big to ignore, as the exchange seemed to rule out cryptocurrency futures in the recent past. Bitcoin is almost everything anyone talks about in brokers and trading companies, which have suffered amid growing but unusually placid markets. If futures on one stock market soared, it would be nearly impossible for any other stock market, such as CME, to catch up, as scale and liquidity are important in derivatives markets.
“You can’t ignore the fact that this is increasingly becoming a story that won’t go away,” Duffy said in an interview with CNBC. There are “major companies” that want access to Bitcoin and there is a “huge accumulated demand” from customers, he said. Duffy also believes that incorporating institutional traders into the market could make bitcoin less volatile.
A Japanese people will use the cryptocurrency to raise capital for municipal revitalization
The Japanese people of Nishiawakura are investigating the idea of holding an initial coin offering (ICO) to raise capital for municipal revitalization. This is a very new approach and you can ask for help from the national government or seek private investment. Several ICOs have had serious problems and many investors are skeptical about the fact that any new testimony has value, especially if the ICO turns out to be another joke or scam. Bitcoin was certainly no joke.
INITIAL CURRENCY OFFER – (ICO)
We didn’t mention ICO in the first edition of Crypto Trend, so let’s mention it now. Unlike an initial public offering (IPO), in which a company has an actual product or service for sale and wants you to buy shares in their company, any ICO can have an ICO that wants to start a new Blockchain project with the intent to create a new witness in his chain. ICOs are unregulated and several have been a total disgrace. A legitimate ICO, however, can raise a lot of money to fund a new project and Blockchain network. It is typical for an ICO to generate a high token price near the start and then return to reality shortly thereafter. Because an ICO is relatively easy to maintain if you know the technology and have a little money, there have been many and today we have about 800 tokens at stake. All of these tokens have a name, they are all cryptocurrencies, and except for the well-known tokens, such as Bitcoin, Ethereum, and Litecoin, they are called high currencies. At this time, Crypto Trend does not recommend participating in an ICO, as the risks are extremely high.
As we said in No. 1, this market is the “wild west” right now and we recommend caution. Some investors and early adopters have made huge profits in this market space; however, there are many who have lost a lot, or all. Governments are considering the regulations as they want to know all the transactions to tax them all. They all have huge debt and are charged with cash.
To date, the cryptocurrency market has avoided many problems and financial pitfalls from government and conventional banks, and Blockchain technology has the potential to solve many more problems.
A great feature of Bitcoin is that the creators chose a finite number of coins that can never be generated (21 million), thus ensuring that this cryptocurrency can never be inflated. Governments can print as much money (fiat currency) as they want and inflate their currency to death.
Future articles will delve into specific recommendations, but make no mistake, as early investment in this sector will be only for your most speculative capital, money you can afford to lose.
CRYPTO TREND will be your guide if and when you are willing to invest in this market space.