At 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. Here are some highlights that allow us to see how new and exciting this market space is:
The biggest future exchange in the world to create a Bitcoin futures contract
Chicago Mercantile Exchange (CME) President Terry Duffy said: “I think you’ll see our second week of December [bitcoin futures] hire for the list. Today, you can’t shorten bitcoin, so there’s only one way. You buy it or sell it to someone else. So you create a market on both sides, I think it’s always a lot more efficient. “
CME plans to launch Bitcoin futures by the end of the year, pending a regulatory review. If successful, it will give investors a viable way to make Bitcoin “long” or “short”. Some Exchange-Traded Funds vendors have also introduced bitcoin ETFs that track bitcoin futures.
These developments allow people to invest in the cryptocurrency space without owning a CC or using the services of a CC exchange. Bitcoin futures may make digital assets more useful by allowing users and intermediaries to hedge their currency risks. This could increase the adoption 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 that have no money laundering concerns.
CME’s move also suggests that bitcoin has become too big to ignore, as the exchange seemed to rule out the future of cryptography in the recent past. Bitcoin is all that brokerage and trading companies talk about, which has suffered from a rising but uncommon market. If futures were to emerge in an exchange, it would be almost impossible for any other exchange, such as CME, to capture, because scale and liquidity are important in derivatives markets.
“You can’t ignore the fact that this is becoming more and more of 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 “high demand” from customers, he said. Duffy also believes that bringing institutional traders to the market could make bitcoin less volatile.
The use of cryptocurrency by the people of Japan to raise capital for the revitalization of municipalities
The Japanese town of Nishiawakura is researching an Initial Coin Offer (ICO) to raise capital to revitalize the city. It is a very innovative approach, and they can ask for support from the national government or seek private investment. Many ICOs have had serious problems, and many investors are skeptical that any new tokens will be of value, especially if the ICO becomes another joke or scam. Bitcoin was certainly no joke.
INITIAL COIN OFFER – (ICO)
We didn’t mention the ICO in the first edition of Crypto Trend, so let’s mention it now. Unlike an Initial Public Offering (IPO) where a company is selling a real product or service and wants to buy shares in their company, anyone who wants to create a new Blockchain project can have an ICO. a new token in their chain. ICOs are unregulated and there have been several counterfeits. A legal ICO, however, can raise a lot of money to fund a new Blockchain project and network. It is common for an ICO to generate a high token price near the beginning and then return to reality soon. It’s pretty easy to have an ICO if you know the technology and have a few bucks, there have been a lot of them, and today we have about 800 tokens at stake. All of these tokens have a name, all of them are cryptocurrencies, and with the exception of very popular tokens, such as Bitcoin, Ethereum, and Litecoin, they are called alt-currencies. Crypto Trend does not currently recommend participating in an ICO, as the risks are very high.
As we said in No. 1, this market is now a “wild west,” and we recommend you be careful. Some investors and first-time users have made huge profits in this market space; however, there are many who have lost, or all of them. The government is looking into the regulations because they want to know about each transaction in order to tax them all. They all owe a lot of money and are in debt.
To date, the cryptocurrency market has avoided many of the financial problems and pitfalls of government and traditional banking, and Blockchain technology has the potential to solve more problems.
A great feature of Bitcoin is that the creators chose a limited number of coins that could ever be created – 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, however, make no mistake, investing in this sector early will only be for your most speculative capital, the money you can lose.
CRYPTO TREND will be your guide if you are willing to invest in this market space and when.