Is Bitcoin Going to Lose Its Edge?
Whatever your feelings may be concerning bitcoin, the cryptocurrency is now all the rage. However, CNBC thinks that due to recent launch of the futures contracts, bitcoin will become rather dull.
From its creation back in 2009, bitcoin has had hacking attacks, thefts, bankruptcies, derivations, controversies and just recently has left behind the $10,000 mark.
Bitcoin has got people asking whether should they invest in it or not. Those that have snagged or mined bitcoins in its younger days are avid supporters of the cryptocurrency, but may secretly fear a major dip in the price. Skeptics seem to be very against it, but that may appear after missing the opportunity to buy them when the price was low.
This financial situation is now receiving mainstream attention and as bitcoin’s value keeps going up, it is seemingly losing its practicality.
CBOE’s Sunday launch of bitcoin’s futures exchange can be considered an important step towards regulating the virtual currency. Wall Street has noted this and will most likely drive a new kind of investors towards this market.
Many analysts agree that the upcoming wave of interest will decrease the price’s volatility. As a result, the price’s major fluctuations could come to an end.
Considering this, we will probably get to experience a new side of bitcoin in the following months, one that’s uneventful. As traders are quietly preparing themselves for possible future losses, experts are hinting that bitcoin’s price swings might end and may even show signs of becoming a normal currency.
But before all that happens, some problems are bound to happen first. Within hours of the launch on Sunday there have been two temporary suspensions in trading. This means that there are still tweaks that need to be done in order for the mechanics of the market to adjust to this new asset.
“What we are doing is using the sophisticated financial machinery that we have created over the last 15 years and fitted it to something that is highly questionable,” said Salaman Ahmed, chief investment strategist at Lombard Odier Investment Managers, on Monday at CNBC. “And I think that it may look fancy and interesting, but it is reckless.”