In the primary edition of CRYPTO TREND we introduced Crypto Currency (CC) and answered several questions relating to this new market space. There is a lot of NEWS in this market every day. Here are some highlights that impart us with a peek at how new and exciting the forex market space is:
World's largest futures exchange to make a futures contract for Bitcoin
Terry Duffy, president from the Chicago Mercantile Exchange (CME) said "I do think sometime in another week in December you'll see our bitcoin futures contract out for listing. Today you cannot short bitcoin, so there's only the best way it may go. You can buy it or flip it to somebody else. So you produce a two-sided market, I do think it's always much more efficient."
CME intends to launch Bitcoin futures by the end of the entire year pending regulatory review. If successful, this will likely give investors a viable approach to take "long" or "short" on Bitcoin. Some sellers of Exchange-Traded Funds have in addition filed for bitcoin ETF's that track bitcoin futures.
These developments have the potential allowing people to advance the crypto currency space without owning CC's outright, or working with a CC exchange. Bitcoin futures might make the digital asset more useful by getting users and intermediaries to hedge their foreign-exchange risks. Which could raise the cryptocurrency's adoption by merchants that accept bitcoin payments but they are wary of their volatile value. Institutional investors are accustomed to trading regulated futures, which aren't stricken by money-laundering worries.
CME's move also shows that bitcoin is becoming too large to ignore, since exchange seemed to eliminate crypto futures in the current past. Bitcoin is many anyone is speaking about at brokerages and trading firms, that have suffered amid rising but unusually placid markets. If futures at an exchange became popular, it might be nearly impossible for some other exchange, like CME, to catch up, since scale and liquidity is important in derivatives markets.
"You can't ignore the fact this really is getting increasingly of any story that won't disappear," said Duffy in a conversation with CNBC. You'll find "mainstream companies" that are looking usage of bitcoin and there's "huge pent-up demand" from clients, he said. Duffy also thinks bringing institutional traders in the market will certainly make bitcoin less volatile.
Japanese village to work with crypto currency to raise capital for municipal revitalization
The Japanese village of Nishiawakura is researching the concept of holding an Initial Coin Offering (ICO) to get capital for municipal revitalization. This is the very novel approach, and they could want national government support or seek private investment. Several ICO's have experienced serious problems, and many investors are sceptical that any new token should have value, specifically ICO turns out to be a another joke or scam. Bitcoin certainly wasn't joke.
INITIAL COIN OFFERING - ( ICO )
We failed to mention ICO in the primary edition of Crypto Trend, so let's bring it up now. Unlike an Initial Public Offering (IPO), where a corporation posseses an actual products on sale and wants you to acquire shares into their company, an ICO can take place by anyone who would like to initiate a whole new Blockchain project with the intention of earning a different token for their chain. ICO's are unregulated and some have already been total shams. A legitimate ICO can however raise a lot of cash to fund a whole new Blockchain project and network. It is actually typical to have an ICO to develop a high token price near first then sink time for reality soon after. Because an ICO is actually comparatively easy to hold once you discover we have and have absolutely a couple of dollars, we have seen many, and already we have now about 800 tokens in play. Every one of these tokens have an identity, all are crypto currency, and aside from ab muscles well-known tokens, like Bitcoin, Ethereum, and Litecoin, these are dubbed alt-coins. At this time Crypto Trend will not recommend engaged in an ICO, as the potential for loss are incredibly high.
Once we said in Issue 1, forex could be the "wild west" today, and were recommending caution. Some investors and early adopters are making large profits in the foreign exchange market space; however, there are various who've lost a good deal, or all. Governments have decided you're regulations, as they like find out about every transaction as a way to tax them all. They all have huge debt and are also strapped for cash.
So far, the Токенизация currency market has avoided many government and conventional bank financial problems and pitfalls, and Blockchain technologies have the wide ranging to fix a lot more problems.
A element of Bitcoin would be that the originators opted for a finite range of coins which could ever be generated - 21 million - thus making certain that this крипторубль 'coin can not be inflated. Governments can print just as much money (fiat currency) because they like and inflate their currency to death.https://twitback.com/post/224409
Future articles will investigate specific recommendations, however, make no mistake, early paying for this sector will likely be limited to your most speculative capital, money that you really can afford to lose.
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