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Bitcoin (BTC) Continued Rise Precursor for Regulation

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Bitcoin Continued Rise Precursor for Regulation
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Bitcoin continued rise could attract more regulation as authorities around the world become intrigued. According to Galaxy Investment Partners CEO, Michael Novogratz, regulators are becoming increasingly nervous as the digital currency continues to hit record highs.

Bitcoin Regulation

The sentiments follow yet another record-breaking spree that saw the largest cryptocurrency record its biggest single-day gain of $2,500. The digital currency has since risen to record highs of $14,000 and showing no signs of slowing down.

Given the impact that the cryptocurrency is set to have especially in the financial sector, the former Fortress hedge fund manager, believes regulations may be inevitable.

“One of the big risks out there right now is that prices are moving so fast that regulators are going to get nervous. I could legitimately see bitcoin go $13,000, $14,000, $20,000, $25,000 and see somebody balk,” said Mr. Novogratz.

However, Novogratz has warned that it won’t be easy for regulators to have control over the havoc-causing cryptocurrency.  According to the Executive Officer governments, regulation could take much longer to have a significant impact.

Novogratz is planning to launch a $500 million fund focused on cryptocurrencies investments. According to the Hedge Fund manager, bitcoin is winning mostly because of its underlying technology and not its digital currency credentials

“Bitcoin is winning out as digital gold. I don’t think it’s going to be a currency.… Nothing that volatile is going to be a currency,” said Mr. Novogratz

Bitcoin Futures Impact

Bitcoin has soared by more than 1500% this year. The surge has catapulted it from being just a fringe asset to being a globally traded product. However, it faces its biggest test heading into the year-end as some of the biggest exchanges in the world introduce Futures Derivatives.

Kick-starting the Futures spree is CBOE which is set to launch its own Bitcoin Futures over the weekend. CME Group is set to follow suit before the Christmas holidays as the NASDAQ exchange prepares for its Bitcoin exchanges in the summer of 2018.

Bitcoin has mostly been on the rise with slight pullbacks. However, with the introduction of Futures contracts, it will be much easier to bet on declines as Hedge Funds make an entry. For long, the digital currency has risen on the speculation of bullish traders but with institutional investors entering the foray the landscape could significantly change.

Even though there are traders that are waiting for the Futures contract to go short on Bitcoin, there are also those that plan to use the opportunity to go long. It awaits to be seen what will be the result given that talk of bubble burst around the cryptocurrency has been gaining momentum in the recent past.

We will be updating our subscribers as soon as we know more. For the latest updates on BTC, sign up below!

Image courtesy of Acumen_ via Flickr

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.

Bitcoin

Stepping off the rollercoaster: Why I’ve fallen out of love with Bitcoin

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Bitcoin
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The very word Bitcoin has almost become synonymous with that of cryptocurrency. It’s basically just a medium of conducting digital transactions – it’s a virtual currency and one of many. So how has it taken on a definition of its own and asserted itself as a leader in the digital financial ecosystem?

Bitcoin has been crowned king of altcoins, probably because it was one of the earliest and most successful of its kind. The trendsetter has ushered in a wave of cryptocurrencies built on decentralised P2P networks and has inspired a growing number of followers and spinoffs. But is Bitcoin struggling to keep up with the newcomers who have made considerable developments to the stability, security, and usability of the crypto world?

The supporting case for Bitcoin has been a clear one. Its pioneering infrastructure has situated it in a position of dominance in the altcoin realm. Bitcoin has a proven usage case as a store of value. Having existed over 8 years without failure, it has a large lead over most altcoins and has withstood the test of time as younger counterparts join the market. However, it seems to be on a downward slope, or at the very least, not progressing at the speed of the market.

In May this…

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Altcoins

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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collateralized debt position
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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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Hodium
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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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