BITSTAMP:BTCUSD   Bitcoin / Dollar
Bitcoin             has long been a favorite for those looking for an alternative to centralized fiat money. Although I always thought bitcoin             was promising, the technological aspect always held safety and liquidity concerns. Due to the fact that it is hard to prove peer-to-peer transactions, financial institutions - especially in the U.S. - have strict policies and layers of purchase authenticity that make buyers wait from a few hours or longer to actually receive the bitcoin             .

Could the inception of other bitcoin             trading products add to liquidity or the general acceptance of bitcoin? Recently, the Commodity Futures Trading Commission (CFTC) has designated that bitcoin             is a commodity. By doing so, adding bitcoin             derivatives is an attempt to regulate the bitcoin             market.

Some find it strange that the CFTC has said that bitcoin             , among other digital currencies, has the same properties as physical commodities like gold             or oil             . It is true that there is a defined supply of bitcoin             , but it is more than likely that the designation is more of an attempt to regulate than to legitimize bitcoin             as a true commodity.

Furthermore, the addition of bitcoin             derivatives could simply open up the bitcoin             market to more traders. Because let's face it, on a day-to-day period, trading bitcoin             can be a snooze-fest. With futures trading being as digital as bitcoin             , less than five percent of futures are ever exercised for delivery which may lead to more bitcoin             speculation.

One thing is certain: bitcoin             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 bitcoin             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             .

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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 central bank led financial crisis, bitcoin             could see dark days.

Please follow me on Twitter @Lemieux_26

Check my posts out at:
http://bullion.directory/about-bullion-directory/christopher-lemieux/
http://www.investing.com/members/200193197
http://www.teachingcurrencytrading.com
http://oilpro.com/chrislemieux
all those talk about definitions..))

if you read Soros ahlchemy of finance - he actually allocates all currencies into commodities!
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Interesting take, something to monitor for sure.
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trapped in a range since Jan 2015
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