In the first issue of CRYPTO TREND, we introduced Crypto Currency (CC) and answered a few questions about this new marketplace. Every day there is a lot of NEWS in this market. Here are some highlights that give us an idea of how new and exciting this market space is:
The largest futures market in the world to create a futures contract for Bitcoin
Terry Duffy, president of the Chicago Stock Exchange (CME), said: "I think you will see our (bitcoin futures) announcement agreement in the second week of December. You can't shorten bitcoin today, so there's only one way to go. You either buy it or sell it to someone else. So creating a bilateral market, I think it's always much more effective. "
CME intends 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" in Bitcoin. Some stock market sellers have also applied for bitcoin ETFs that track bitcoin futures.
These developments have the potential to enable people to invest in the cryptocurrency space without having a definitive CC or using CC exchange services. Bitcoin futures could make digital assets more useful by allowing consumers and intermediaries to hedge their currency risks. This could increase the adoption of cryptocurrency by merchants who want to accept bitcoin payments but are shielded from its variable value. Institutional investors are also accustomed to trading regulated futures that are not subject to money laundering concerns.
CME's move also suggests that bitcoin has become too big to ignore as the stock market seems to be turning off cryptocurrencies in the recent past. Bitcoin is just about everything that everyone talks about in brokerage and trading companies that have suffered in the face of growing but unusually quiet markets. If stock futures were to take off, it would be almost impossible for any other stock market, such as CME, to catch up, as scale and liquidity are important in derivatives markets.
"You can't ignore the fact that this is becoming more and more of a story that won't go away," Duffy said in an interview with CNBC. There are "mainstream" companies that want access to bitcoins and there is "huge limited demand" from customers, he said. Duffy also believes that bringing institutional traders to the market can make bitcoin less volatile.
Japanese village to use cryptocurrency to raise capital for municipal revitalization
The Japanese village of Nishiavakura is exploring the idea of conducting an initial coin offering (ICO) to raise capital for a community revival. This is a very new approach and they may seek support from the national government or seek private investment. Several ICOs have had serious problems and many investors are skeptical that any new tag will have value, especially if the ICO is another joke or a scam. Bitcoin was certainly no joke.
OFFERING PRIMARY COINS – (ICO)
We didn't mention ICO in the first issue of Crypto Trend, so let's just mention it now. Unlike initial public offering (IPO), when a company has an actual product or service for sale and wants to buy shares in their company, an ICO can be held by anyone who wants to initiate a new Blockchain project with the intention of creating a new sign of their chain. ICOs are unregulated and several were complete scams. However, a legitimate ICO can raise a lot of money to fund a new Blockchain project and network. It is characteristic of an ICO to generate a high price of a token at the beginning and then return to reality shortly thereafter. Because an ICO is relatively easy to run, if you know the technology and have a few bucks, there were many, and today we have about 800 characters in play. All of these tokens have a name, all of them are cryptocurrencies, and except for the very well-known tokens, such as Bitcoin, Ethereum and Litecoin, they are called alt-coins. Crypto Trend does not currently recommend participating in an ICO, as the risks are extremely high.
As we said in issue 1, this market is the "wild west" right now and we recommend caution. Some investors and early adopters have made huge profits in this market space; however, there are many who have lost a lot, or all. Governments are considering regulations because they want to know about each transaction to tax them all. They all have huge debt and are bound by money.
So far, the cryptocurrency market has avoided many state and conventional banking financial problems and pitfalls, and Blockchain technology has the potential to solve many more problems.
A great feature of Bitcoin is that the creators have chosen a limited number of coins that can ever be generated – 21 million – thus ensuring that this cryptocurrency will never be inflated. Governments can print as much money (fiat currency) as they like and inflate their currency to death.
Future articles will go into specific recommendations, but make no mistake, early investing in this sector will only be for your most speculative capital, money you can afford to lose.
CRYPTO TREND will be your guide if and when you are ready to invest in this market space.