Bitcoin has propelled itself to go mainstream, which majority of such implementation to take place in the next few years. However Bitcoin’s futures have already been implemented with Chicago Board Option Exchanged (CBOE) launching their futures exchange last week. There is more good news this week for Bitcoin futures with Chicago Mercantile Exchange (CME) launching their own futures exchange, the CME is the biggest options exchange in the World, having a greater impact on the Bitcoin as the Bitcoin has reached the $19,000 mark and is expected to reach $20,000 by the end of the year. This would be double the so called “optimistic” $10,000 target analysts set for the Bitcoin to reach by the end of the year.
Why CME matters
Aside from being the largest options exchange in the World, the CME matters a lot for the Bitcoin due to the reach the CME has. the CBOE launch produced results expected by most analysts due to the Bitcoin being a new age currency and the futures exchange being one of the very first in the World to adopt it so investors were cautious. The CBOE launch was largely seen as a “guinea pig” test to see how the Bitcoin would respond. The Bitcoin didn’t disappoint as it soared to new heights around the time of the launch. CME is seen as the real deal with its vast reach and investors base, bringing on board a larger base of investors and more capital which in turn should seal the Bitcoin’s fate in terms of being a “forever futures currency”.
Ever since the Bitcoin futures exchanges were launched, since last Monday more than 4,000 contracts exchanged hands and with the CME also listing Bitcoin futures, one can expect even more success. But what is more important is that we are seeing Bitcoins implantation taking place in major financial systems with the CME futures being the very first to take such a step. In 2018 and the following years many analysts expect the Bitcoin to be implemented across various different sectors from the financial sector to Nation states, thus increasing the enthusiasm for individuals and traders to obtain Bitcoins initially for investment purposes as the Bitcoin is seen as a digital gold.
What to expect in 2018
So what kind of implementation can we expect to take place during 2018 and in the next few years? One major form of possible implementation into the financial sector is with central banks buying cryptocurrencies. It maybe seen as a long shot but we are already seeing adaptation by Government’s to use cryptocurrencies as investments or to facilitate transactions, from taking part in Nationality schemes to paying off debts. At this point in time Governments are focused on trying to devalue cryptocurrencies but the resilience of crptocurrencies themselves have stopped many Governments in their efforts to do so, leading to Governments such as Iran, to adopt the Bitcoin directly into their financial systems in the future and with several other Governments such as Venezuela adopting digital currencies as part of their financial systems to address the weaknesses within their own fiat based currencies.
Not only that we are seeing Nations competing against one and other to become the next cryptocurrency hub, particularly in Asia with Japan taking the lead. Japan has approved of more than a dozen new Bitcoin exchanges this year alone with several others awaiting approval. It is also technically possible to gain Government loans and subsidies when opening a business related to the Bitcoin in order to promote the digital currency further and also further the fintech sector in Japan. Japan is also home to one of the few Nations that provides sustainable and extremely cheap electricity to cryptocurrency mines due to abundance of electricity in the country with the Government actively looking for such investments.
Furthermore old Bitcoin critics are coming to accept the realization that the Bitcoin is an important part of the digital currency World and have began to adopt it within their own companies. One such staunch critic would be JPMorgan which offers its traders the ability to purchase the Bitcoin despite it falling it a “fraud” not long ago. Ever since then criticism of the Bitcoin from JPMorgan has been almost non-existent with even JPMorgan analysts speaking in favor of the Bitcoin.
To conclude CBOE or even CME futures investments are not the end of Bitcoins financial implementation but merely the beginning as this year we are seeing the foundation being laid by financial organizations and Nations to implement the Bitcoin in their financial systems and within few years to come we maybe looking at complete mainstream adaptation of the Bitcoin. This is not just good for Bitcoin investors but for the global economy as a whole, creating jobs, providing crucial investment, particularly with the decline of fiat based currencies the World is moving to an age of global digital currencies, thus increasing the Bitcoins relevance even more.