In the first edition of CRYPTO TREND we introduced Crypto Currency (CC) and answered several questions about any of it new market space. There will be a lot of NEWS in this market every day. Below are a few highlights that give crypto crash us a glimpse of how new and exciting this market space is:
World's largest futures exchange to produce a futures contract for Bitcoin
Terry Duffy, president of the Chicago Mercantile Exchange (CME) said "I think sometime in the second week in December you'll see our [bitcoin futures] contract out for listing. Today you cannot short bitcoin, so there's only one way it could go. You either buy it or sell it to somebody else. So you develop a two-sided market, I think it's always a lot more efficient."
CME intends to launch Bitcoin futures by the end of the year pending regulatory review. If successful, this can give investors a feasible approach to take "long" or "short" on Bitcoin. Some sellers of Exchange-Traded Funds have filed for bitcoin ETF's that track bitcoin futures.
These developments have the potential allowing people to purchase the crypto currency space without owning CC's outright, or utilizing the services of a CC exchange. Bitcoin futures might make the digital asset more useful by allowing users and intermediaries to hedge their foreign-exchange risks. That could increase the cryptocurrency's adoption by merchants who want 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 implies that bitcoin has become too big to ignore, since the exchange seemed to rule out crypto futures in the recent past. Bitcoin is most anyone is speaking about at brokerages and trading firms, which may have suffered amid rising but unusually placid markets. If futures at a trade became popular, it would be nearly impossible for any other exchange, like CME, to catch up, since scale and liquidity is very important in derivatives markets.
"You can't ignore the truth that that is becoming more and more of a story that won't disappear," said Duffy within an interview with CNBC. You will find "mainstream companies" that are looking access to bitcoin and there's "huge pent-up demand" from clients, he said. Duffy also thinks bringing institutional traders into the market might make bitcoin less volatile.
Japanese village to utilize crypto currency to raise capital for municipal revitalization
The Japanese village of Nishiawakura is researching the idea of holding an Initial Coin Offering (ICO) to raise capital for municipal revitalization. This can be a very novel approach, and they might look for 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, particularly if the ICO works out to be always a another joke or scam. Bitcoin certainly was no joke.
INITIAL COIN OFFERING - ( 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), where a company posseses an actual product or service available and wants you to purchase shares inside their company, an ICO could 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 now been total shams. A legitimate ICO can however raise plenty of cash to fund a brand new Blockchain project and network. It's typical for an ICO to generate a high token price near the start and then sink back once again to reality soon after. Because an ICO is not too difficult to carry once you learn the technology and have several bucks, there were many, and today we've about 800 tokens in play. Each one of these tokens have a title, they're all crypto currency, and except for the well-known tokens, like Bitcoin, Ethereum, and Litecoin, they're dubbed alt-coins. Currently Crypto Trend doesn't recommend participating within an ICO, whilst the risks are really high.
Once we said in Issue 1, this market may be the "wild west" at this time, and we are recommending caution. Some investors and early adopters have made large profits in this market space; however, there are many who've lost a lot, or all. Governments are considering regulations, as they would like to find out about every transaction in order to tax them all. They all have huge debt and are strapped for cash.
To date, the crypto currency market has avoided many government and conventional bank financial problems and pitfalls, and Blockchain technology has got the potential to solve many more problems.
A great feature of Bitcoin is that the originators chose a finite quantity of coins that could ever be generated - 21 million - thus ensuring that this crypto coin can never be inflated. Governments can print as much money (fiat currency) as they like and inflate their currency to death.
Future articles will delve into specific recommendations, however, make no mistake, early purchasing this sector will undoubtedly be limited to your most speculative capital, money that you could afford to lose. crypto crash
CRYPTO TREND will undoubtedly be your guide if and when you're ready to purchase this market space.
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