CRYPTOCURRENCIES
by stories of those early adapters who bought bitcoin back in 2009 who have now become millionaires and now despite its many skeptics, it is being accepted by the real players in the market. CBOE was the first to starting offering bitcoin future contracts and CME Group followed on the 17th December. R es p e ct e d entrepreneurs and former banking maestros have entered the digital currency arena and it really does appear that it has finally reached some acceptance from its financial peers. There is also another reason why it is so different than it was back in 2013.
In
they bought bitcoin. This of course could be pure myth as no one really knows where it will finally end up. Everyone has their theories, but at the end of the day, it is such a new asset no one really knows how it will behave.
FX It doesn’t get affected
look at the history of an asset and, at the same time, try to find the true value of it to predict its future movements. Apart of its story in 2013, bitcoin really hasn’t got much of a history for us to go on, and no one can safely say what the true value of it is.
2017 bitcoin became an asset for investment and a potential store of wealth
In 2017 bitcoin became an asset for investment and a potential store of wealth. The majority of those purchasing bitcoin and its fellow cryptocurrencies are not doing it for what it has been designed to do which is be a method of payment. They are buying in as investment to make a return. Bitcoins incredible run this year with so many stories of success have imprinted on the mind of so many that they too could one day be a millionaire if
by economic fundamentals like currencies do. Those out there who use technical analysis can’t say 100% that it follows the rules of support and resistance because yet again the bitcoin CFD market is even younger than its so called “physical” counterpart. But at this stage, as 2018 begins, there doesn’t seem to be a case of history repeating, but here could lie a potential problem.
When it comes to trading, many Tulip
I can u nde rs t a nd why some analysts out there continue to link this bi t coi n ’ s sk y r o ck et journey to that of what happened with Tulip Mania, as in many ways this is the closest thing we can look back on to compare it to.
Mania which gripped
Holland between 1634 to 1637 was described by Charles Mackay in 1841 as “the Madness of crowds”, saw the price of tulips bulbs rise so fast that people were selling their land and assets just to get hold of more bulbs thinking that could sell them on for greater profit.
With
Mania gripping the country it wasn’t long till speculators jumped on board and tulip contracts were traded on the futures market. After
FX TRADER MAGAZINE January - March 2018 11
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