Bitcoin Validation: CME Group launches Bitcoin Futures
Chicago Merchantile Exchange launched bitcoin futures today. CME Group is the world's largest futures exchange and it is the second exchange to launch bitcoin futures after CBOE.
This is as the cryptocurrency has been on a run since the beginning of this year and most importantly since November reaching and breaking price barriers.
This has made the market a wonder and speculators have been wanting to get their hands on the money in the bitcoin sphere but needed a renowned body to be behind it first. The needed what i call: Bitcoin Validation. This happened on the 10th and 18th of December respectively when CBOE and CME groups launched bitcoin futures. Now investors can speculate the rise of bitcoin and profit from its increase. This alone has driven the price of bitcoin from $11,000 at the begining of december to $15,000 to $18,000 at the time of writing this post.
The question on many peoples lips is:
Can these moves be sustained?
Lets hear from Axel Weber: UBS Chairman.
Swiss bank UBS has warned anyone keen to invest in bitcoin that they risk losing their money.
Weber fears that the digital currency’s recent gains are unsustainable, and says investors and speculators should keep away.
Speaking to Swiss newspaper NZZ, he says:
“We as a bank have consciously warned against this product because we do not assess it to be valuable or sustainable.”
Weber argues that financial regulators should now step in, given the surge of interest in bitcoin recently. Otherwise, he fears smaller investors could be wiped out by bitcoin’s volatility.
France’s finance minister, Brune Le Maire, has also waded into the bitcoin debate.
He wants the G20 group of leading advanced economies to debate the whole issue of digital currencies next speing.
Speaking on French news channel LCI, Le Maire says:
“I am going to propose to the next G20 president, Argentina, that at the G20 summit in April we have a discussion all together on the question of bitcoin.” Le Maire told French news channel LCI.
“There is evidently a risk of speculation. We need to consider and examine this and see how with all the other G20 members we can regulate bitcoin.”
The changes in bitcoin recently calls for price regulation but does the cryptocurrency built not to be regulated have a hidden code for regulation.
Regulations definitely require a third party intervention and the blockchain for which bitcoin was created has none. We would have to wait it out to see what the world financial system would do to stop the rise in bitcoin price as it seems they won't be relegated to the walls of history without a fight.
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