In the first release of CRYPTO TREND we introduced Crypto Currency (CC) and answered many questions about this new market space. There is a lot of news in this market every day. Here are some highlights that give us a glimpse into how exciting new market space is:
The world's largest futures exchange to create a Bitcoin futures contract
Terry Duffy, president of the Chicago Mercantile Exchange (CME), said: "I think that sometime in the second week of December, you will see our bitcoin futures listed. Today you can't sell bitcoins, so there's nothing possible. It's one way you can either buy or sell it to someone else, so you're creating a market on two sides, and I think it's always more efficient.
CME plans to launch Bitcoin futures contracts by the end of the year pending regulatory review. If successful, this will give investors a viable way to enter "currencies" or "sell" on Bitcoin. Some ETF vendors have also applied for Bitcoin ETFs that track Bitcoin futures.
These developments have the potential to allow people to invest in cryptocurrency space without owning a full copy of CC or using CC exchange services. Bitcoin futures can make a digital asset more useful by allowing users and brokers to hedge foreign exchange risk. This could lead to increased cryptocurrency adoption by traders who want to accept Bitcoin payments but are worried about their volatile value. Institutional investors are also used to trade regulated futures, which do not suffer from money laundering concerns.
The CME move also indicates that the Bitcoin currency has become too large to be ignored, as the stock market seems to rule out the encryption of futures contracts in the recent past. Bitcoin currencies revolve around everything anyone talks about in brokerages and trading companies, which have suffered amid unusually quiet but emerging markets. If futures on a stock exchange begin, it will be almost impossible for any other exchange, such as CME, to catch up, since volume and liquidity are important in derivatives markets.
"You cannot ignore the fact that this story is becoming more and more a story that will not disappear," Duffy said in an interview with CNBC. He said that there are "major companies" want access to the currency of Bitcoin and there is a "pent-up demand" from customers. Duffy also believes that bringing institutional traders to the market could make bitcoin currencies less volatile.
Japanese village to use cryptocurrency to increase capital to revitalize the municipality
The Japanese village of Nishiawakura is looking for the idea of an initial currency offer (ICO) to raise capital to activate municipalities. This is a very new approach, and they may seek national government support or seek private investment. Many ICO problems have faced serious problems, and many investors doubt that any new token will be valuable, especially if the ICO turns out to be a joke or other scam. Bitcoin was definitely no joke.
Initial Currency Offer – (ICO)
We didn't mention ICO in the first release of Crypto Trend, so let's mention it now. Unlike the IPO, where a company has a physical product or service to sell and wants you to buy shares in its company, ICO can have anyone who wants to start a new Blockchain project with the intention of creating a new token on their chain. ICO's uncensored and many of them were total sun. However, the legitimate ICO could raise a lot of money to fund a new Blockchain project and network. It is customary for the ICO to create a high symbolic price near the beginning and then return to reality shortly. Since ICO is relatively easy to carry if you know the technology and have a few dollars, there were a lot of them, and today we have about 800 game codes. All these symbols have a name, they are all cryptocurrencies, and except for the well-known tokens, such as Bitcoin, Ethereum, and Litecoin, they are called alternative coins. At this time, Crypto Trend does not recommend participating in the ICO, since the risks are too high.
As we said in Issue 1, this market is the "Wild West" at the moment, and we recommend caution. Some early investors and adopters made big profits in this market; however, there are many who have lost a lot, or everything. Governments are considering regulations, because they want to know every transaction in order to tax them all. They are all huge debts and tied in cash.
To date, the cryptocurrency market has avoided many financial problems, traditional government banks and predicaments, and Blockchain technology has the potential to solve many other problems.
One of the great features of Bitcoin is that the creators have chosen a limited number of coins that can be created at all – 21 million – thus ensuring that this encryption currency is not inflated. Governments can print as much money (paper currency) as they want and inflate their currency to death.
Articles in the future will delve into specific recommendations, however, don't be mistaken. Early investment in this sector will be only for your speculative capital, which is money you can lose.
CRYPTO TREND will be your guide if and when you're ready to invest in this market space.