Bitcoin Growing, Because of Appearing Futures Contracts

 

The latest valuation brings Bitcoin’s total market cap to over $200 billion

The digital coin has been increasing stably in the past few months. At this time  world’s largest cryptocurrency is seeing increased recognition from the mainstream industry.

The sudden spike in value can also be put down to the impending launch of the first Bitcoin futures contracts by US financial firms CME and CBOE. This would effectively mark the biggest shake-up of the Bitcoin market, which has until now relied purely on cash trades at fluctuating prices.

Investors would be able to trade for Bitcoins at a fixed market value with  futures contracts, hedging against the risk of sudden changes in value of Bitcoin. It’s still unclear how it will affect the market, while many traditional investors are optimistic about the perspectives of futures contracts.

 

 

Instead of the investment we see right now, where people are speculating a sudden price increase. There is prediction, that launching futures contracts will stabilize the market. It’s likely that many miners will turn to selling futures contracts at a set price to ensure they get a guaranteed return on their investment, and that owners will do the same if the price begins to fluctuate. If that happens, we may see a drop in the number of sudden spikes in valuation.

It’s all speculation at this point, but we’ll know for sure on 10 December when the first contracts start to emerge.