In the first edition of CRYPTO TREND, we introduced crypto currency (CC) and answered several questions about this new market place. There is a lot of news every day in this market. Here are a few highlights that give us a glimpse of how new and exciting this marketplace is:
The world's largest futures exchange to create futures contracts for bitcoin
Chicago Mercantile Exchange (CME) president Terry Duffy said, "I think in the second week of December you will see our (Bitcoin Future) deal for listing today. You can't do a short bitcoin today, so there's only one way." You can buy it or sell it to someone else so you create a two-way market, I think Is always more efficient.
CME intends to bring Bitcoin futures to market by the end of the year, pending regular review. If successful, it will provide investors with an effective way to go "long" or "short" on bitcoin. Some dealers in the exchange-traded funds also applied for the track Bitcoin futures at Bitcoin ETF.
These developments allow people to invest in crypto currency space without directly owning CC, or using CC Exchange services. Bitcoin futures can make digital assets more efficient by allowing users and intermediaries to hedge their foreign currency risk. It wants to accept Bitcoin payments but may be more likely to increase cryptocurrency acceptance by merchants who are wary of its volatile value. Institutional investors are also used to trading controlled futures, which is not plagued by money-laundering concerns.
CME's move further implies that Bitcoin has become too big to ignore, since the exchange has denied crypto futures in the recent past. Bitcoin is all about brokerage and trading companies, which have fallen into a growing but unusually calm market. If the futures of an exchange are closed, it is almost impossible for any other exchange like CME to catch them, as scale and liquidity are important in the derivatives market.
In an interview with CNBC, Duffy said, "You can't ignore the fact that it's becoming a story that won't go farther,". There are "mainstream companies" who want access to Bitcoin and there is a "huge pent-up demand" of clients, he said. Duffy also thinks that bringing in institutional traders to market may make bitcoin less volatile.
The Japanese village will use crypto currency to raise capital for the revival of the municipality
Japan's Nishiyakura Village is studying the idea of holding an initial coin offering (ICO) to raise capital for municipal revitalization. This is a very fancy method, and they can seek the help of the national government or private investment. Many ICO's have serious problems and many investors doubt that a new token will be worth it, especially if the ICO proves to be another joke or scandal. Bitcoin was certainly no joke.
Primary Currency Supply – (ICO)
We didn't mention the ICO in the first version of the crypto trend, so let's mention it now. Unlike Initial Public Offering (IPO), where a company has an actual product or service for sale and you want to buy shares in their company, the ICO can hold anyone who wants to create a new blockchain project by creating a new token in their chain. ICOs are not regulated and there have been several total shams. A legitimate ICO can raise a lot of cash to fund new blockchain projects and networks. It is very common for ICOs that a high token price can be generated near the start and then sink into reality shortly afterwards. Because if you know the technology and get a few bucks, keeping an ICO is relatively easy, there are many and today we have around 800 tokens playing. All of these tokens have a name, all of them crypto currency, and they are dubbed Alt-coin, excluding very familiar tokens like Bitcoin, Ethereum and Litcoin. At the moment, the crypto trend does not suggest participating in an ICO, as the risks are extremely high.
As we said in Issue 1, this market is "Wild West" right now, and we recommend caution. Some investors and early adopters have made big gains in this market place; However, there are many people who have lost a lot or lost everything. Governments are considering the rules, because they want to know about every transaction to tax them all. They all have huge debt and are stuck for cash.
Until now, many public and conventional bank financial issues and problems have been avoided in the crypto currency market, and blockchain technology is likely to solve many more problems.
One of the great features of Bitcoin is that the promoters chose a limited number of currencies that could ever be generated – 21 million – thus ensuring that this crypto currency could never be inflated. Governments can print as much money (fiat currency) and spread their currency to death.
Future articles will eliminate specific recommendations, but make no mistake, investing in this sector initially will only be for your maximum speculative capital, which you may lose money.
CRYPTO TREND will be your guide if and when you are ready to invest in this market.