In the first issue of CRYPTO TREND, we introduced Cryptocurrency (CC) and answered several questions about this new market area. There is a lot of NEWS in this market every day. Here are some points that give us an idea of how new and exciting this market space is:
The world’s largest futures exchange to create a futures contract for Bitcoin
Terry Duffy, president of the Chicago Board of Trade (CME), said: “I think that in the second week of December, you will [bitcoin futures] sign a contract for enrollment. Today, you can’t do abbreviated bitcoin, so there’s only one way it can go. You either buy it or sell it to someone else. So you’re creating a two-way market, and I think it’s always more efficient. “
CME intends to launch Bitcoin futures by the end of the year, awaiting regulatory review. If successful, it will give investors a convenient way to go “long” or “short” over Bitcoin. Some Exchange-Traded Funds sellers have also applied for bitcoin ETFs that track bitcoin futures.
These developments have the potential to allow people to invest in the cryptocurrency space without having to directly own a CC or use CC exchange services. Bitcoin futures can make digital assets more profitable by allowing users and intermediaries to hedge foreign exchange risks. This could increase the acceptance of the 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 without the hassle of money laundering.
CME’s move also shows that bitcoin is too big to be overlooked, as the exchange has ruled out cryptocurrency futures in the recent past. Bitcoin is everything that everyone is talking about in brokers and trading firms that are suffering against the backdrop of rising but unusually calm markets. If futures rose on the stock exchange, it would be almost impossible for any other stock exchange, such as the CME, to grow, as scale and liquidity are important in derivative markets.
In an interview with CNBC, Duffy said, “You can’t help but notice that this is becoming a story that will not go away.” According to him, there are “major companies” that want to access bitcoin, and there is a “huge reduced demand” from customers. Duffy also thinks that bringing institutional traders to market can make bitcoin less volatile.
The Japanese village will use cryptocurrency to raise capital to revitalize municipalities
The Japanese village of Nishiawakura is exploring the idea of holding an Initial Coin Proposal (ICO) to raise capital to revitalize municipalities. This is a very new approach, and they may seek support from the national government or private investment. Several ICOs have serious problems, and many investors are skeptical that any new token will gain value, especially if the ICO turns out to be another joke or scam. Bitcoin was certainly not a joke.
FIRST COIN OFFER – (ICO)
We did not talk about the ICO in the first issue of Crypto Trend, so let’s mention it now. Unlike an Initial Public Offer (IPO) in which a company has an actual product or service for sale and you want to buy shares in their companies, it can be held by anyone who wants to start a new Blockchain project with the intention of creating an ICO. a new sign in their chain. ICOs are unregulated and some are completely fake. A legitimate ICO, but it could raise a lot of money to fund a new Blockchain project and network. It is typical that the ICO creates a high token price near the beginning and soon returns to reality. If you know the technology and have a few dollars, it’s relatively easy to maintain an ICO, so there have been many, and today we have about 800 tokens. All of these tokens have a name, they are all cryptocurrencies, and with the exception of very popular tokens such as Bitcoin, Ethereum, and Litecoin, they are called sub-coins. Currently, Crypto Trend does not recommend participating in the ICO, because the risks are very high.
As we said in Issue 1, this market is currently a “wild west” and we recommend caution. Some investors and early practitioners have made huge gains in this market space; however, there are many who have lost most or all. Governments are reviewing regulations because they want to know about every transaction to tax them all. They all have huge debts and are stuck for cash.
So far, the cryptocurrency market has escaped the financial problems and pitfalls of many state and traditional banks, and Blockchain technology has the potential to solve many more problems.
A big feature of Bitcoin is that the creators chose a limited number of coins that could never be created – 21 million – thus ensuring that this cryptocurrency would never be inflated. Governments can print as much money (fiat currency) as they want and kill currencies.
Future articles will focus on specific recommendations, but make no mistake, an early investment in this sector will be only for your most speculative capital, the money you can lose.
KRYPTO TREND will be your guide when you are ready to invest in this market space.