Bitcoin futures started trading yesterday morning on an exchange run by Cboe Global Markets Inc. The larger CME Group will launch its own bitcoin futures trading next week. How will this impact the market?
Trading sounds hard to a lot of people. Professionals devise complicated algorithms, computerised models with thousands of inputs, or they work on charts with different indicators feeding into a complex buying or selling processes. Here’s the truth: Markets are actually not hard to understand.
What we are starting to see is a mid-cycle peak. Phil explains that this has happened all throughout history. But most people are likely to mistake it for a market top. When, in reality, it may only be a half-way point.
Amongst the hustle and bustle of the Azraq refugee camp, a blockchain revolution is brewing. For months, aid payments had been delivered to refugees via banking middlemen. Due to the remoteness of the camp, the transaction fees were high, the transfers slow, and the delivery unreliable. But no longer.
The future of money is here. And global markets are getting ready to place their bets. This Sunday, bitcoin’s legitimacy will soar to a new level. The CBOE Group Inc. launches the first cryptocurrency futures contract on Sunday night. The bitcoin market is about to get a whole more interesting.
Sunday, 10 December. Make a note of that day in your diary now. Why? Something big is happening on that day. CBOE Global Markets Inc. will become the first exchange in the world to offer futures on cryptocurrencies. The largest futures exchange in the world, the Chicago Mercantile Exchange, will make its debut a week later on 18 December. You know what this tells you? The big money has found its way into cryptos.
There is something strange afoot in the markets. I couldn’t tell you what it is. But markets are screaming ahead with no real reason as to why they should be. On the flip side, the crypto market is still only worth US$200 billion. It turns out the ‘big boys in the bubble’ can’t touch it yet. But you can.
The modern system relies on trusting a third-party. That third-party is a central bank or government. Central bankers believe they can engineer asset-price inflation. That is, how much the value of assets goes up. If they control money, they can decide what it’s worth. Cryptocurrencies flip that idea around.
I’m just waiting for the crypto launch that — in addition to its run-of-the-mill magical powers — also promises a cure for cancer or can endow the Donald with humility. Why not? Cryptos can do just about everything else!? Seriously, what a con. There are no earnings. There are no assets. There’s nothing…other than blind belief.
What you get is a $16 million pile in Arizona and a huge palace for $45 million in Santa Barbara. One rich man builds; another buys. They advertise their wealth and bad taste simultaneously.
Technology is working behind the scenes to revolutionise simple day-to-day tasks. You can’t see it or touch it. But the changes will have an incredible impact on your life. And, in our view, there will be more positives than negatives.
Of course, there are industries that will always require people to function. However, your accountant may want to start looking over their shoulder. And your lawyer too. Why? The blockchain is a digital record of events. It makes it easier to identify factual information.
For centuries, we’ve relied on middlemen to be the trusted third-party. The ones overseeing the proof of identification. The people who clear the transaction. All of these people are the ones we trusted to look after the transaction process. In my view, the blockchain will out these people from their roles in a few short years.
The typical story has its hero…and its villain. The hero bought bitcoin when everyone told him not to. Now he’s regarded as a genius. From what we can tell, bitcoin is headed to the moon. Or to Hell. Weightless…frictionless…why not?
The problem they’ve got is this. The rich can’t buy in to such a ‘small’ market without showing what they are doing this (which would push up prices out of their control). So instead they are trying to make ordinary people write it off, panic sell or fear cryptocurrencies. Or at least not compete with them to buy in. Its economics 101.