Someone wants to give you $1 million dollars. You can accept it in either bitcoin, or the Venezuelan bolivar. So, which one would you choose? The ‘real’ currency? Or this ‘fake’ internet money?
The latest to downplay the digital coin is Philip Lowe, governor of the Reserve Bank of Australia (RBA). Lowe called bitcoin a ‘speculative mania’. But of course that’s what you’d expect a central banker to say.
Litecoin price has skyrocketed in the last week. Jumping 111% on the back of the bitcoin futures market opening in America. This strong, positive relationship makes sense. Litecoin is essentially a 'spin-off' of bitcoin.
Traders in the bitcoin futures market feel like they’re at a free all you can eat buffet. According to Bloomberg: ‘Cboe (Chicago Board Options Exchange) Global Markets Inc.’s new contracts were priced as much as 13 percent higher than bitcoin itself since trading began Sunday night.’
The introduction of bitcoin futures could go either way. In the short term, it could drive the price even higher as speculators go for leveraged gains. But longer term (which in bitcoin world means a few weeks…or maybe even days) the impact could be negative.
I’m sure you’ve seen them around in the financial commentary. The references to ‘tulip crazes’. The ‘bitcoin is a bubble’ charts. You see, they’re comparing apples with oranges. Blinded by their internal biases, they’re not seeing what’s really happening.
Bitcoin is emerging unscathed from its first morning on the American futures market. Listed on the Chicago Board Options Exchange, the world watched on with clenched jaws as the market opened.
Bitcoin futures will launch today. As you can imagine, the market will be full of traders, all betting on the bitcoin price swings. So will bitcoin be even more volatile as traders try to profit from big swings and dips?
The mainstream is well and truly coming for bitcoin. As of 10 December, the Chicago-based Cboe Futures Exchange will become the first US exchange to list bitcoin futures. The shock announcement came this week. Cboe won't have the spotlight to themselves for long, though.
Australia was a bit of a slow starter with crypto. Now the Aussie government is trying to find ways to encourage ICOs. This is an opportunity. One which, handled right, could see tremendous growth for Australia. This openness means pioneering Aussie based crypto projects can launch hugely successful ICOs.