The rapid ascension of cryptocurrency has shaken up the international economic market, as Bitcoin, the most popular within an expanding field of choices, has gone from an underground novelty to a viable alternative currency and investment opportunity. The recent decisions by several United States financial firms to open up exchanges for Bitcoin futures looks to be a pivotal development that will provide increased legitimacy and stability for Bitcoin going forward. Avalon Life, a leading expert on blockchain solutions, outlines the implications of Bitcoin’s availability on the futures market, and the ramifications it could have on further related financial activities.
In December of 2017, Chicago-based Cboe Global Markets became the very first exchange to launch Bitcoin futures, and was soon followed by CME Group. A futures contract lets a trader place a leveraged bet on whether the price of the underlying asset will move higher or lower before the contract expires. Cboe and CME Bitcoin futures are cash settled, so no Bitcoins will actually change hands when a contract expires. While other entities initially remained skeptical, the increasing trading activity with Bitcoin futures has led to a domino effect, as more markets and firms are joining in. TD Ameritrade recently opened trading in the Cboe contract, stating they believe “the market is showing signs of adequate liquidity.” Nasdaq is preparing for a launch in the second-half of 2018, a move that Avalon Life predicts will eventually open the door to broader participation in the Bitcoin markets by Wall Street firms and retail investors. Even JP Morgan Chase Bank, whose CEO Jamie Dimon was previously outspoken in his criticisms of cryptocurrency, has since indicated possibly giving their futures trading platform access to CME.
There are a number of positive results stemming from these developments in regards to not only Bitcoin, but other emerging cryptocurrencies as well. For instance, futures can be regulated on public exchanges, providing more confidence to those who were previously hesitant due to the overall lack of conventional regulations. Because of this, institutional investors are more likely to offer Bitcoin futures to their clients as a viable investment option. This opens up the market to a wider investor base, which includes any countries where the direct trading of cryptocurrency has been prohibited. Perhaps most importantly, it will help ease the much publicized volatility of Bitcoin, as futures are designed to balance out price fluctuations of underlying assets. This could eventually set the stage for an exchange-traded fund, which will trigger increased investment on a more widespread level, ensuring more mainstream credibility.
Based in Costa Rica, Avalon Life offers in-depth cryptocurrency education and innovative blockchain solutions. The company’s product development places a focus on environmental sustainability, while merging new technology with an objective to foster social responsibility. In order to broaden participation with the alternative currency market, Avalon Life created a referral marketing program, and later became the first provider to introduce mining packages with the X11 algorithm. Fueled by the fast evolution of blockchain technology, the company has cultivated strategic partnerships around the globe, and today offers unique blockchain products in numerous sectors within the industry. Their business model provides partners with extensive training, the opportunity for measured engagement in digital currency markets, and access to exclusive products, including Bitsurge, a hybrid token based on the Waves platform.
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