Will the futures market behave to Bitcoin as it did to gold?
Dec 18, 2017 Posted / 1420 Views
Bitcoin Futures, which is launched a few days back, have brought in a new wave of trust and legitimacy in the space of cryptocurrency, as the talks of the bubble are slowly fading away. However, it is still unclear if the market will react have an affirmative impinge when the futures trading will settle in the masses and also there is anonymity if Bitcoin prices will be affected by it.
The genuine mood in the market is one of jubilation as the futures trading is expected to facilitate in building a wave of faith and increasing institutional money as well. It is expected that it will be great for Bitcoin.
There are two perspectives in the Bitcoin universe, which can be labeled as-“Belief” and “Cynical”. The former viewpoint called belief perceive Bitcoin as a transformation that will modify the built-in mechanism and the way two parties interact with each other. You cannot limit this interaction to finances and monetary benefits alone rather it includes the overall communication with your clients and customers. If you will apprehend the view of the Crypto Anarchist and evaluate its Manifesto, you will find that they have fundamentally conversed about the changing scenario.
The Anarchist Manifesto claims that soon Cryptologic methods will change the underlying attitude and behavior of the corporations and will soon interfere in the way economic transactions are conducted. It further adds that mutually emerging information markets and crypto anarchy will design a liquid market for any and all substances, which can be gathered into lexis and visuals.
The Cynical point of view, on the other hand, states that Bitcoin is considered insignificant. They continually relate it to the Tulips Mania, The dot.com bubbles, and the web infrastructural demolishing raids. The cynics point out that huge amount of Business Houses if will adopt of Bitcoin as a way of financial dealing, will soon falter the stable business model.
Until the present time, the solitary way Cynical theory was influencing the market was by declining to partake. However, as soon as the arrival of futures was announced, Cynics too started investing and are active in contributing and creating a Bitcoin market.
When the one group was viewing Bitcoin as a value with unlimited scope, the other theory was considering it essentially meaningless. There is no absolute of anything on earth, so both these theories are not absolute either. So another group called Institutional investors have crashed in the Belief and Cynical. The proposition is that sizeable institutional companies will want to hold back the price first, so they can gather Bitcoin at a discount. Nonetheless, this is not the first time institutions are alleged of price manipulation. This is where the precious metal comes in and it will not be the first time that the Bitcoin is being compared to Gold.
You will be amazed by the amount of similarity between the price chart of Bitcoin and the early prices of Gold (during the 1970s). Even the fluctuations are same, and even some of the major dips are repeated at the same worth. Either the cosmos of Bitcoin and Gold are linked together, or someone Bitcoiner has been tampering the gold chart. We will have to find out what will happens next?
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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