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.…