In the very first edition of CRYPTO TREND we introduced Crypto Currency (CC) and answered several questions about that new market space. There is a lot of NEWS in this market every day. Here are a few highlights giving us a view of how new and exciting this market space is Latest NFT News VNN:
World's largest futures exchange to produce a futures contract for Bitcoin
Terry Duffy, president of the Chicago Mercantile Exchange (CME) said "I believe sometime in the next week in December you'll see our [bitcoin futures] contract out for listing. Today you can't short bitcoin, so there's only 1 way it may go. You either buy it or sell it to somebody else. Which means you create a two-sided market, I believe it's always a great deal more efficient."
CME intends to launch Bitcoin futures by the finish of the season pending regulatory review. If successful, this will give investors a practical strategy to use "long" or "short" on Bitcoin. Some sellers of Exchange-Traded Funds also have filed for bitcoin ETF's that track bitcoin futures.
These developments have the potential to permit people to buy the crypto currency space without owning CC's outright, or utilizing the services of a CC exchange. Bitcoin futures could make the digital asset more useful by allowing users and intermediaries to hedge their foreign-exchange risks. That might raise the cryptocurrency's adoption by merchants who would like to accept bitcoin payments but are wary of its volatile value. Institutional investors will also be used to trading regulated futures, which aren't plagued by money-laundering worries.
CME's move also shows that bitcoin is now too large to ignore, since the exchange seemed to rule out crypto futures in the recent past. Bitcoin is most anyone is discussing at brokerages and trading firms, which may have suffered amid rising but unusually placid markets. If futures at an exchange shot to popularity, it could be nearly impossible for any exchange, like CME, to catch up, since scale and liquidity is important in derivatives markets.
"You can't ignore the fact that that is becoming more and more of an account that won't disappear," said Duffy in a interview with CNBC. You can find "mainstream companies" that want usage of bitcoin and there's "huge pent-up demand" from clients, he said. Duffy also thinks bringing institutional traders into industry could make bitcoin less volatile.
Japanese village to make use of crypto currency to improve capital for municipal revitalization
The Japanese village of Nishiawakura is researching the notion of holding an Initial Coin Offering (ICO) to improve capital for municipal revitalization. This can be a very novel approach, and they could request national government support or seek private investment. Several ICO's have had serious problems, and many investors are sceptical that any new token could have value, especially if the ICO works out to become a another joke or scam. Bitcoin certainly was no joke.
INITIAL COIN OFFERING - ( ICO )
We didn't mention ICO in the very first edition of Crypto Trend, so let's mention it now. Unlike an Initial Public Offering (IPO), where a company has an actual product or service available and wants you to get shares in their company, an ICO may be held by anyone who would like to initiate a brand new Blockchain project with the intention of fabricating a brand new token on their chain. ICO's are unregulated and several have been total shams. The best ICO can however raise a lot of cash to fund a brand new Blockchain project and network. It's typical for an ICO to generate a higher token price near the start and then sink back again to reality soon after. Because an ICO is relatively easy to carry once you learn the technology and have a couple of bucks, there has been many, and today we have about 800 tokens in play. Every one of these tokens have a name, they're all crypto currency, and with the exception of the very well-known tokens, like Bitcoin, Ethereum, and Litecoin, they're dubbed alt-coins. At this time Crypto Trend does not recommend participating in a ICO, because the risks are incredibly high.
Even as we said in Issue 1, this market may be the "wild west" at this time, and we're recommending caution. Some investors and early adopters have made large profits in this market space; however, there are lots of who've lost a whole lot, or all. Governments are considering regulations, as they want to know about every transaction in order to tax them all. They all have huge debt and are strapped for cash.
Up to now, the crypto currency market has avoided many government and conventional bank financial problems and pitfalls, and Blockchain technology has got the potential to resolve a lot more problems.
A great feature of Bitcoin is that the originators opt for finite amount of coins that may ever be generated - 21 million - thus ensuring that crypto coin can never be inflated. Governments can print just as much money (fiat currency) as they like and inflate their currency to death Latest NFT News VNN.
Future articles will delve into specific recommendations, however, make no mistake, early investing in this sector will soon be limited to your most speculative capital, money that you can afford to lose.
CRYPTO TREND will soon be your guide if and when you are ready to buy this market space.
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