Crypto TREND – Second Edition

In the first edition of CRYPTO TREND we introduced Crypto Currency (CC) and answered several questions on this new market space. There is a whole lot of NEWS within this market everyday. Here are some highlights that provide us a glimpse of how new and exciting forex space is:

World’s largest futures exchange to make a futures seek Bitcoin

Terry Duffy, president on the Chicago Mercantile Exchange (CME) said “I think sometime in the other week in December you will notice our [bitcoin futures] contract out for listing. Today you can’t short bitcoin, so there’s just one way it can go. You either buy it or flip it to someone else. So you develop a two-sided market, I think it really is much more efficient.”

CME intentions to launch Bitcoin futures by the end on the year pending regulatory review. If successful, this can give investors a viable approach to take “long” or “short” on Bitcoin. Some sellers of Exchange-Traded Funds also have filed for bitcoin ETF’s that track bitcoin futures.

These developments potentially have to allow visitors to invest inside the crypto currency space without owning CC’s outright, or employing a CC exchange. Bitcoin futures might make the digital asset more useful by getting users and intermediaries to hedge their foreign-exchange risks. That could enhance the cryptocurrency’s adoption by merchants who wants to accept bitcoin payments however are wary of its volatile value. Institutional investors will also be used to trading regulated futures, which aren’t tormented by money-laundering worries.

CME’s move also demonstrates that bitcoin is now too big to ignore, ever since the exchange appeared to rule out crypto futures recently. Bitcoin is simply about all anyone is discussing at brokerages and trading firms, that have suffered amid rising but unusually placid markets. If futures in an exchange became popular, it might be nearly impossible for just about any other exchange, like CME, to capture up, since scale and liquidity is very important in derivatives markets.

“You can’t overlook the fact that this can be becoming more and more of any story that wont go away,” said Duffy inside an interview with CNBC. There are “mainstream companies” looking access to bitcoin plus there is “huge pent-up demand” from clients, he explained. Duffy also thinks bringing institutional traders to the market may make bitcoin less volatile.

Japanese village to work with crypto currency to increase capital for municipal revitalization

The Japanese village of Nishiawakura is researching the thinking behind holding an Initial Coin Offering (ICO) to improve capital for municipal revitalization. This is a very novel approach, plus they may require national government support or seek private investment. Several ICO’s have experienced serious problems, and several investors are sceptical that any new token could have value, specifically if the ICO happens to be a another joke or scam. Bitcoin certainly was serious.


We didn’t mention ICO within the first edition of Crypto Trend, how about we mention it now. Unlike an Initial Public Offering (IPO), certainly where an company posseses an actual service or product for sale and wants you to definitely buy shares into their company, an ICO may be held by anyone who really wants to initiate a whole new Blockchain project together with the intention of creating a whole new token for their chain. ICO’s are unregulated and many have been total shams. A legitimate ICO can however raise lots of money to fund a whole new Blockchain project and network. It is typical for the ICO to create a high token price near to the start after which sink returning to reality immediately after. Because an ICO is fairly easy to hold once you learn the technology and also a few bucks, there have already been many, and from now on we have about 800 tokens in play. All these tokens possess a name, they all are crypto currency, and excluding the very popular tokens, like Bitcoin, Ethereum, and Litecoin, they’re dubbed alt-coins. At this time Crypto Trend won’t recommend participating in a ICO, because risks are exceedingly high.

As we said in Issue 1, the forex market is the “wild west” at the moment, and now we are recommending caution. Some investors and early adopters have elected large profits with this market space; however, there are numerous who have lost a whole lot, or all. Governments will be looking at regulations, when they want to be aware of every transaction to be able to tax them. They all have huge debt and are also strapped for cash.

So far, the crypto currency forex market has avoided many government and conventional bank financial problems and pitfalls, and Blockchain technology has the possible to solve a lot more problems.

A fantastic aspect of Bitcoin would be that the originators opted for finite amount of coins which could ever be generated – 21 million – thus making sure that this crypto coin can not be inflated. Governments can print just as much money (fiat currency) since they like and inflate their currency to death.

Future articles will learn about specific recommendations, however, make no mistake, early investing within this sector will probably be only for your most speculative capital, money that you could afford to lose.

CRYPTO TREND will likely be your guide assuming you are ready to invest on this market space.