Could the inception of other trading products add to liquidity or the general acceptance of bitcoin? Recently, the Commodity Trading Commission (CFTC) has designated that is a commodity. By doing so, adding derivatives is an attempt to regulate the market.
Some find it strange that the CFTC has said that , among other digital currencies, has the same properties as physical like gold or oil . It is true that there is a defined supply of , but it is more than likely that the designation is more of an attempt to regulate than to legitimize as a true commodity.
Furthermore, the addition of derivatives could simply open up the market to more traders. Because let's face it, on a day-to-day period, trading can be a snooze-fest. With trading being as digital as , less than five percent of are ever exercised for delivery which may lead to more speculation.
One thing is certain: could an alternative to traditional safe-haven assets. For the last year, I have been the only one, that I know of, that has noticed that has been trading the inverse of the most traditional safe-haven - gold . Bitcoin's largest movements seem to stem from money flowing in and out of gold .
Unfortunately, in a crisis situation, I believe gold would win because it is tangible and that is physiologically comforting. If gold garners support from another led financial crisis, could see dark days.
Please follow me on Twitter @Lemieux_26
Check my posts out at: