In the first issue of CRYPTO TREND, we introduced Crypto Currency (CC) and answered some questions about this new market area. There is a lot of NEWS in this market every day. Here are some key pointers in moving forward with your new site.
The world’s largest futures exchange to create a futures contract for bitcoin
Chicago Mercantile Exchange (CME) President Terry Duffy said: “I think you will see us in the second week of December [bitcoin futures] contract for listing. You can not reduce bitcoin today, so it can only go one way. You either buy it or you sell it to someone else. So you create a two-way market, I think it is always much more efficient. ”
CME plans to launch bitcoin futures by the end of the year, pending regulatory review. If successful, it will allow investors to go “long” or “short” on bitcoin. Some traders on the stock exchange have applied for bitcoin ETFs, which trace bitcoin futures.
These developments allow people to invest in cryptocurrency without having to own CC directly or through CC exchange services. Bitcoin futures can make digital assets more useful by allowing users և brokers to hedge their currency risks. This may increase the acceptance of cryptocurrency by traders who want to accept bitcoin payments but are wary of its volatile value. Institutional investors are also accustomed to trading in regulated futures that do not suffer from money laundering concerns.
The CME move also suggests that bitcoin has become too large to be ignored, as the exchange seems to have ruled out cryptocurrencies not so long ago. Bitcoin is all that’s talked about in brokers and trading companies, which have suffered from growing but unusually quiet markets. If futures rise in the stock market, it will be almost impossible to reach any other stock exchange, such as CME, as scale-liquidity can be found in derivatives markets.
“You can not ignore the fact that this is becoming more and more a story that will not disappear,” Duffin told CNBC. There are “major companies” that want to access bitcoin, there is “huge closed demand” from customers, he said. Duffy also believes that bringing institutional traders to market can make bitcoin less volatile.
Japanese village to use cryptocurrency to raise capital for urban revitalization
The Japanese village of Nishiavakura is exploring the idea of conducting an Initial Coin Offering (ICO) to raise capital for urban revitalization. This is a very new approach, they can ask for the support of the national government or seek private investment. Several ICOs have had serious problems, և many investors are skeptical that any new sign will have value, especially if it turns out that the ICO is just another joke or scam. Of course, Bitcoin was not a joke.
INITIAL COIN OFFER – (ICO)
We did not mention the ICO in the first edition of Crypto Trend, so let’s mention it now. Unlike an initial public offering (IPO) where a company sells an actual product or service and wants you to buy shares in their company, the ICO can be anyone who wants to start a new Blockchain project. a new sign on their chain. ICOs are unregulated,: some are completely fake. A legitimate ICO, however, can raise a lot of money to fund a new Blockchain project և network. It is common for the ICO to initially generate a high token price and then soon fall back into reality. Because the ICO is relatively easy to maintain, if you know the technology եք you have a few dollars, it’s been a lot և today we have about 800 tokens. All of these tokens have a name, they are all cryptocurrencies, except for many popular tokens such as Bitcoin, Ethereum and Litecoin, they are called alt-coins. Crypto Trend does not recommend participating in ICOs at this time as the risks are too high.
As we said in issue 1, this market is the “wild west” right now, and we advise you to be careful. Some investors և early adopters have made big profits in this market area. however, there are many who have lost a lot or all. Governments are discussing regulations because they want to know about every transaction to tax everyone. They all have huge debts, they are closed for cash.
So far, the cryptocurrency market has avoided the financial problems and pitfalls of many state-owned traditional banks, and Blockchain technology has the potential to solve many other problems.
The great feature of Bitcoin is that the originators chose a limited number of coins that could ever be created – 21 million, thus ensuring that this cryptocurrency can never be blown. Governments can print as much money (fiat currency) as they want to inflate their currency to death.
Future articles will delve into specific offers, however make no mistake, early investments in this area will only be for your most speculative capital, the amount you can afford to lose.
CRYPTO TREND will be your guide if you are ready to invest in this market area.
Stay with us!