2 Issues The CFTC And CME Would Be Wise To Consider Before Letting Bitcoin Futures Loose
Andrew Hecht posted an excellent article concerning the cryptocurrency Bitcoin on the news site Seeking Alpha. His critique was generated by the stunning news that the Chicago Mercantile Exchange plans to open the trading of Futures contracts on Bitcoin before the end of 2017! The CME is the center for the commoditities Futures market, and this move will put the stamp of legitimacy on the emerging but somewhat sketchy financial world of cryptocurrencies. An introductory excerpt is below. You can go the Seeking Alpha site to read the complete article.
‘Bitcoin took the next step towards validation as a mainstream asset last week when the Chicago Mercantile Exchange announced that the world’s leading commodities futures exchange would introduce a Bitcoin futures instrument. The Exchange offered an interesting and insightful piece here on Seeking Alpha about Bitcoin, gold, and fiat currencies.
Bitcoin is a phenomenon that has been the best performing asset, perhaps in history. The price of the cryptocurrency has gone from 6 cents to over $7000 over the span of seven years. What began as a quirky technology gimmick to mine coins for the few with technological smarts, has grown into a major force with a market capitalization of over $118 billion and rising. There are almost 1300 other cryptos out there in the marketplace these days, but none can rival the performance or power of Bitcoin which has become the brand name for the digital currency revolution and currently owns more than half the total market cap combined.’ – Andrew Hecht