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alternative currency

#121 User is offline   y66 

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Posted 2017-November-01, 06:58

From Bitcoin Moves Toward Mainstream, Poised to Join Oil, Gold in Futures Trading by Alexander Osipovich (WSJ):

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Bitcoin is moving from the margins of the financial world closer to its center.

CME Group Inc.,the world’s biggest exchange group, said Tuesday it aims to launch a futures contract based on bitcoin by the end of the year. The plan, subject to regulatory approval, would be a big step forward in the evolution of the digital currency.

Futures are a way for traders to bet on whether the price of a commodity, such as oil or gold, will rise or fall. Introducing a U.S. futures contract based on bitcoin would enable Wall Street banks and trading firms to protect themselves against price swings in the digital currency. It could also provide retail investors with an easier way to trade bitcoin.

Bitcoin was conceived in 2008 by an anonymous creator known as Satoshi Nakamoto. It is a purely digital currency, or “cryptocurrency”—essentially, strings of ones and zeros flitting around in cyberspace—designed to act as an alternative to government-backed currencies.

Many officials and bankers around the world, including J.P. Morgan Chase Chief Executive James Dimon, have been reluctant to embrace bitcoin. Its reputation has been tarnished by an association with money laundering and other illicit activity, while volatility and uncertainty over its legal status have kept the digital currency trading in the shadows of global markets for years.

CME’s plan to bring bitcoin to the futures market offers a stamp of approval from a financial giant at a time when the digital currency’s supporters say it is gaining respectability.

“It is a legitimization of bitcoin as an asset class,” said Daniel Masters, chairman of the Global Advisors group of companies, which runs a bitcoin hedge fund and exchange-traded notes linked to digital currencies.

The move is nonetheless risky for CME, which could face embarrassment if the bitcoin market implodes, as some skeptics predict will eventually happen. There is no guarantee that its bitcoin initiative will succeed. Many new futures contracts introduced by exchanges fail to take off.

Still, CME’s plan sent the price of bitcoin surging. After the exchange’s announcement Tuesday, the digital currency’s price rose above $6,400 for the first time, up more than 4% for the day, according to CoinDesk. It has more than quintupled so far this year.

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#122 User is offline   Aberlour10 

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Posted 2017-November-08, 10:05

7000 USD ....what does proceeding this growth? only unlimited beliving in the market? I am possibly totally wrong, but in (my) common sense it looks like a snowball, getting bigger and bigger, faster and faster..
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#123 User is offline   WellSpyder 

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Posted 2017-November-08, 11:22

I don't see why I should be interested in buying, whether the price is $7000 or 7 cents. And actually, I'm not sure I understand the intrinsic difference between a price of $7000 and 7 cents, when the only value is effectively what someone else thinks it is worth - if I am buying purely in order to speculate (or to diversify risk, if one wants to be more positive about it) then the scope for upward or downward movement seems exactly the same from either of these levels.
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#124 User is offline   Aberlour10 

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Posted 2017-November-08, 11:55

 WellSpyder, on 2017-November-08, 11:22, said:

I don't see why I should be interested in buying, whether the price is $7000 or 7 cents. And actually, I'm not sure I understand the intrinsic difference between a price of $7000 and 7 cents, when the only value is effectively what someone else thinks it is worth - if I am buying purely in order to speculate (or to diversify risk, if one wants to be more positive about it) then the scope for upward or downward movement seems exactly the same from either of these levels.


Thats the point; What is it? A complex system of values or a kind of Ponzi scheme
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