In the first issue of CRYPTO TREND we introduced Crypto Currency (CC) and answered several questions about this new market place. There are many NEWS in this market every day. Here are some points that give us a look at how exciting and exciting this market is:
World's Largest Futures Exchange to Create Bitcoin Futures
Terry Duffy, president of the Chicago Mercantile Exchange (CME), said: "I think at some point in the second week of December you will see our futures contract (bitcoin futures) is just one way you can either buy it or sell it to someone else. So you create a two-way market, I think it's always much more profitable. "
CME plans to launch Bitcoin contracts 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 traders have also filed for bitcoin ETFs that track bitcoin contracts.
These developments have the potential to allow people to invest in the encrypted currency of the currency without owning the CC alone or using the services of a CC exchange. Bitcoin contracts could make digital asset more useful by allowing users and intermediaries to hedge their currency risks. This could increase the adoption of cryptocurrencies by traders who wish to accept bitcoin payments but are skeptical of their volatile value. Institutional investors are also used to negotiate regulated futures, which are not plagued by concerns about money laundering.
CME's move also suggests that bitcoin has become too big to ignore, as the exchange seemed to unravel the secrets of the future of encryption in the recent past. Bitcoin is just about everyone who talks about the brokerage and trading companies that have endured, amid growing but unusually calm markets. If futures on a stock market started, it would be almost impossible to cover other interest rates, such as CME, since scale and liquidity are important in derivatives markets.
"You cannot ignore the fact that this is increasingly becoming a story that will not go away," Duffy told CNBC in an interview. There are "mainstream" companies that want to access bitcoin and there is "huge demand" from customers, he said. Duffy also believes that institutional marketers could make bitcoin less volatile.
Japanese village to use cryptocurrency to raise funds to revitalize municipalities
The Japanese village of Nishiawakura explores the idea of owning an initial coin offering (ICO) to raise funds to revitalize municipalities. This is a very innovative approach and they can seek government support or seek private investment. Many ICOs have had serious problems and many investors are skeptical that any new token will be of value, especially if the ICO turns out to be another joke or fraud. Bitcoin was certainly not a joke.
INITIAL CURRENCY OFFER – (ICO)
We didn't mention ICO in the first release of Crypto Trend, so let's just mention it now. Unlike an initial IPO, where a company has a real product or service for sale and wants to buy shares in their company, an ICO can be withheld by anyone who wants to start a new Blockchain project with the aim of creating a new badge on their chain. ICOs are not regulated and some are global. However, a legitimate ICO can raise a lot of money to fund a new Blockchain project and network. It is typical that an ICO will create a high symbol value near the beginning and then sink back to reality soon after. Because an ICO is relatively easy to hold if you know the technology and have a few dollars, there have been many, and today we have about 800 chips in the game. All of these brands have a name, they are all cryptographic currencies, and besides the well known brands like Bitcoin, Ethereum and Litecoin, they are called alt-coins. At this time Crypto Trend does not recommend participating in an ICO, as the risks are extremely high.
As we said in version 1, this market is the "wild west" right now and we recommend caution. Some investors and early adopters have made big profits in this market place. However, there are many who have lost many or all. Governments are examining regulations as they want to know about every transaction in order to tax them all. They all have huge debt and are cash-strapped.
So far, the cryptographic currency market has avoided many government 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 finite number of coins that can never be created – 21 million – thus ensuring that this encryption coin can never be inflated. Governments can print as much money (fiat currency) as they like and inflate their currency to death.
Future articles will come with specific recommendations, however, make no mistake, timely investment in this area will only be for the most speculative capital, the money you can afford to lose.
CRYPTO TREND will be your guide if and when you are ready to invest in this marketplace.