Bitcoin for sure is the in thing in this decade. Starting just obscure and relatively circulating within some few people, Bitcoin right now has become the global phenomenon and some say we have not yet entered yet the mainstream. Can you just imagine how big this can be when the mainstream has already been a big part of the Bitcoin bandwagon?
Bitcoin has become the biggest and most popular virtual or digital currency and its reach is growing every day. At the same time, it has become the most expensive cryptocurrency of all time. Well, yes, it is the first and the original so all the copycats are just imitations no matter how good they claimed them to be.
Because of its famed volatility, Bitcoin trading has its ups and downs and can quickly burn a hole in anyone's pocket. In this atmosphere of unpredictable market, investing can be risky. Now, two of the biggest exchange companies based in USA are planning to be of help on this problem with the coming launch of Bitcoin futures products.
CME already told the whole world of their intention to introduce their Bitcoin futures product maybe before the year ends. This can be based on the already launched Bitcoin Reference Rate (BRR) they have.
There is also another company called Cboe that is planning to launch their contracts at the same time -- before 2017 evaporates. These, together with some favorable developments, are the catalysts that pushed a big leap in Bitcoin's price which is now playing above the $7000 level. To refresh, Bitcoin’s price has gone up by 500% since January 2017 which of course, lead to the attention of both Wall Street and Main Street as they are also looking for ways to gain more profits to the money they have on hand.
So what are these futures? The ideas here is that of betting on the future price of a commodity and in this case the object is, of course, no other than Bitcoin. Let's take an example. Right now Bitcoin is trading at $7000, now any investor can buy a future contract based on $8500 as they analysed that it would be its future price at a specific date. Now, in case Bitcoin can go as high as $10000, the investor will get the $2000 difference but when it goes lower than $8,500 then the investor loses some money.
Well, simple as that. Investing in futures is very popular with different commodities and this has been the source of big money for the many who have the analytical and predictive skills under their sleeves.
I am just wondering: Do you think futures investment (or should we say, betting?) can be good for Bitcoin in the long run?
