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 virtual debit card instant every day. Here are some highlights that offer us a view of how new and exciting forex space is:
World’s largest futures exchange to manufacture a futures contract for Bitcoin
Terry Duffy, us president of the Chi town Mercantile Exchange (CME) said “I think sometime in the second week in November you’ll see our [bitcoin futures] contract out for listing. Today you cannot short bitcoin, so there’s only one way it can go. You either buy it or sell it to somebody else. So you create a two-sided market, I think it’s always much more efficient. inch
CME expects to launch Bitcoin futures by the end of the year pending regulatory review. If successful, this will give investors a viable way to go “long” or “short” on Bitcoin. Some sellers of Exchange-Traded Funds have likewise filed for bitcoin ETF’s that track bitcoin futures.
These developments have the potential to allow people to buy the crypto currency space without owning CC’s straight up, or using 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 could increase the cryptocurrency’s adopting by merchants who wish to accept bitcoin payments but are wary of its volatile value. Institutional investors are also used to trading regulated futures, which aren’t suffering from money-laundering worries.
CME’s move also suggests that bitcoin has become too big to ignore, since the exchange appeared to exclude crypto futures in the recent past. Bitcoin is just about all anyone is talking about at brokers and trading firms, which have suffered in the middle of rising but unusually placid markets. If futures at an exchange shot to popularity, it would be extremely hard for any other exchange, like CME, to catch up, since scale and liquidity is important in derivatives markets.
“You can’t ignore the fact that this is becoming a lot more of a story that will not go away, inch said Duffy in an interview with CNBC. There are “mainstream companies” trying access to bitcoin and there’s “huge pent-up demand” from clients, he said. Duffy also thinks bringing institutional traders into the market could make bitcoin less volatile.
Japanese people town to use crypto currency to increase capital for city and county revitalization
The japanese town of Nishiawakura is researching the idea of holding a preliminary Coin Offering (ICO) to increase capital for city and county revitalization. This is a very novel approach, and they may ask for national government support or seek private investment. Several ICO’s have had serious problems, and many investors are sceptical that any new expression will have value, especially when the ICO happens to be a another ruse or scam. Bitcoin certainly was no ruse.
INITIAL COIN OFFERING — ( ICO )
We did not mention ICO in the first edition of Crypto Trend, so let’s mention it now. Unlike a preliminary Public Offering (IPO), where a company has an actual service or product for sale and wants you to buy shares in their company, an ICO can be held by anyone who wants to start a new Blockchain project with the purpose of fabricating a new expression on their archipelago. ICO’s are unregulated and several have been total shams. A legitimate ICO can however raise big money to invest in a new Blockchain project and network. It is typical for an ICO to generate a high expression price near the start and then sink back to reality right after. Because an ICO is relatively simple to hold if you know the technology and have a few bucks, there have been many, and after this we have about 900 tokens in play. All these tokens have a name, they all are crypto currency, and apart from the very well known tokens, like Bitcoin, Ethereum, and Litecoin, they are named alt-coins. At this time Crypto Trend does not recommend participating in an ICO, as the risks are extremely high.
Even as said in Issue 1, forex is the “wild west” right now, and we are advocating caution. Some investors and early adopters have made large profits in this market space; however, there are many who have lost a lot, or all. Governments are thinking about regulations, as they want to know about every transaction in order to tax them all. They all have huge debt and are secured for cash.
So far, the crypto currency market has avoided many government and conventional bank financial problems and pitfalls, and Blockchain technology has the potential to unravel many more problems.
A great feature of Bitcoin is that the originators chose a limited number of coins that can ever be generated — 21 years of age million — thus ensuring that this crypto coin can never be filled with air. Governments can print as much money (fiat currency) as they like and blow up their currency to death.