March 14, 2018

UK Crypto Exchange to Launch Bitcoin Futures Contracts

A British cryptocurrency exchange is planning to enter the bitcoin futures market.

CoinfloorEX, a London-based exchange founded in 2013, announced Wednesday that it would launch bitcoin futures contracts next month, joining a number of other companies to offer such product to their customers, according to Reuters.

Notably, unlike some of its competitors, Coinfloor will offer physically settled futures contracts, the wire service reported, meaning when the contract is set to expire, the actual asset being traded will be delivered (in this case, bitcoin). The bitcoin futures contracts offered by CME and Cboe are cash settled, and do not deliver bitcoin to the contract’s owners.

The product came in response in part because of demand from some of the exchange’s customers, Coinfloor co-founder Mark Lamb told Reuters. He explained:

“When you talk to the liquidity providers, they all say the same thing, which is they want a physically delivered futures contract so they can hedge their exposure across exchanges.”

Stepping back, Coinfloor is at least the fifth company to offer bitcoin futures contracts, joining Bitmex, CryptoFacilities, CME Group and the CBOE. The U.S.-based CME and Cboe offer cash-settled contracts, as does the UK-based CryptoFacilities.

The concept of bitcoin futures is still controversial, with the U.S. Commodity Futures Trading Commission announcing it would work on a “heightened review process” for any further futures contracts after receiving pushback on the existing products.

Similarly, several senators requested further information about the CFTC’s oversight of such products, noting that taxpayers should be protected from “fraud, manipulation and abusive practices in the futures and options markets.”

Coins image via Shutterstock

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.

Published at Wed, 14 Mar 2018 20:45:54 +0000

Markets[wpr5_ebay kw=”bitcoin” num=”1″ ebcat=”” cid=”5338043562″ lang=”en-US” country=”0″ sort=”bestmatch”]

You might be interested in …

April 19, 2019

How to Participate in the DecentraX Token and Equity Offering

How to Participate in the DecentraX Token and Equity Offering Simply Fill out the KYC at www.DecentraX.io Once the KYC is filled out within 24 hours your KYC application will be reviewed, and you’ll be […]

August 10, 2017

Bitcoin Gets Technology Theory Backing, Can Reach $100,000 by 2021

“Moore’s Law” has been identified by a Harvard Scientist in bitcoin, and as such the belief is that the digital currency can reach $100,000 by February 2021, according to this theorem.

With bitcoin reaching a big milestone in its scaling debate, an issue that has dogged the digital currency for some time, it is now once again breaking records with little slowing it down.

Fear and speculation ran rampant leading up to the August 1 hard fork, which saw the creation of a new digital currency called bitcoin Cash – a fork of the original bitcoin. However, even since its creation, and rise to third-largest digital currency for a while in regards to market cap, it has not slowed bitcoin’s growth.

Moore’s Law

Moore’s Law is a theorem and a formula that was created by the co-founder of Intel’s Gordon Moore Processor. It states that, on a processor, the number of transistors on the new microprocessor models will increase approximately twice every 18-24 months.

This law has been identified by Denis Porto, and investor, as well as a Harvard Scientist. It is his opinion that bitcoin has become the first digital currency to show signs of this law, even though it is not specifically aimed at this form of technology.

In a recent interview with Markets Morning, Porto said:

Moore’s law is specifically applied to the number of transistors per circuit, but it can be applied to any digital technology. […] Any technology that grows exponentially (i.e. following Moore’s Law) has a doubling moment.

Contributing Factors

In the wake of bitcoin reaching its latest all time high last week, optimism and confidence have skyrocketed once again for the original digital currency. There have been a number of factors that have pushed bitcoin’s growth, and those same factors have seen it follow the trajectory of Moore’s Law as identified by Porto.

bitcoin’s ability to scale through SegWit, and suffer no ill effects from the hard fork, and instead grow to new heights has set this path to $100,000 in the next four years.

There are other factors in the pipeline as well that can also help bitcoin to stick to this trajectory of $100,000 as on Tuesday it was reported that Russia is looking to take over the mantle as the king of bitcoin mining.

Dmitry Marinichev, one of Russian President Vladimir Putin’s advisors, is preparing to boost Russia to be the global power of bitcoin mining, in an attempt to compete with China.

Are these prediction far too high? Can an asset really reach such prices or is there a real threat of a bubble? Let us know your thoughts in the comments below!

Images courtesy of Pixabay, Texas Instruments, Cryptocompare

The post Bitcoin Gets Technology Theory Backing, Can Reach $100,000 by 2021 appeared first on Bitcoinist.com.