How Bitcoin Futures Trading Could Burst the Cryptocurrency’s Tech Bubble

Bitcoin is in the news almost every day; recently it has gathered attention because of the recent launch of Bitcoin Futures by the Chicago Board of Exchange (CBOE). Bitcoin is a highly volatile cryptocurrency and every big and small change in the financial world is said to affect Bitcoins price. Investors are stating that the launch of Bitcoin futures will bring down the Bitcoin demand, eventually bursting the bubble. Here is why everyone thinks Bitcoin could be in trouble.

1) After CBOE’s launch of Bitcoin futures, its rival CME the Chicago Mercantile Exchange is also planning to bring forward its own variant of Bitcoin futures. NASDAQ is not far beyond and planning to have similar launches during the second half of 2018.

2) Bitcoin futures enable investors to speculate Bitcoins future price. The traders put the bets on this price and earn profits accordingly. The launch of Bitcoin futures created huge excitement causing Bitcoin to reach higher values, but experts say it could bring the down the cryptocurrencies in long run.

3) Bitcoin futures offer traders to bet against the Bitcoin price allowing them to compensate in dollars. This is not only boosting their liquidity but allowing investors to trade cryptocurrencies without even owning them. This guards the investors against the volatility but it is also reducing the Bitcoin demand and pushing down its prices.

4) Bitcoin even though is the most popular one, has its own limitations like the scalability issues. New coins like Litecoin are capturing the market with their better transaction speeds. This also has affected the Bitcoins market capitalization. If you are looking forward to investing in coins other than Bitcoin, get Altcoins on Bibox.

5) The launch of Bitcoin futures has attracted high scrutiny from regulators who will play an important role in the future of these cryptocurrencies. While a few countries are supporting them, many countries are warning investors against these cryptocurrencies. Although Bitcoin has proved its legitimacy by trading on the futures, the interest from prominent investors will decide the future of these cryptocurrencies.…

Can Blockchain as a Technology Really Fail?

With technological innovations happening at a jet speed, the evolution of Blockchain is revolutionary taking in account the speed at which the data is stored without any kind of human intervention and possibility of tampering to be minimal. Constant research is being carried out to understand the possible positives and negatives of the distributed ledger, which forms blocks of data for series of transactions in the cloud space.

Is it Complex?

  • the underlying technology behind the cryptocurrency makes it sound to be a new verbatim and has taken the world with surprise and disbelief that something in the virtual network can store and maintain important data, wallet and much more sensitive topic
  • this open source distributed ledger is accessible and has a huge space which is kind of unlimited, the nodes connect the stream of transactions which could be anything from a payment processing solution to a risk and compliance data storage management,
  • the speed of transactions processed using this technology is high, however, the cost of each transaction is high making it an expensive deal for small enterprises to adopt
  • this technology serves as a database and the quotient of trust remains ambiguous since there is no credible proof of how safe and how accurate the data stored in the blocks are due to the centralized database which is similar to the blockchain
  • several flaws have been reported by Truly Coin  noted and there is continuous monitoring required for the system to incorporate correct data, in case of too many nodes being used, the network starts behaving differently
  • Implementation of this technology across all application is challenging, as there are several groups, which are for and against it, the growth of technology always comes with positive and negative implications, which have to be closely looked at and turn the positives for the benefit of the industry.