Bitcoins not yet a currency for trading accounts

Even though more and more online brokers offer Bitcoins as underlying and even support direct foreign exchange trading with the crypto currency, customers are still waiting in vain for the introduction of Bitcoins as currency for trading accounts. It will probably be a long time before they can read on experiences that one of the largest binary brokers offers this alternative. However, the idea is not entirely unrealistic.

What are the advantages of cryptosoft?

The cryptosoft concept of Bitcoin itself speaks for the use of the digital currency as a currency for trading accounts. Bitcoins were specially developed for Internet payments and can easily be traded in large amounts. The financial industry has also been able to significantly expand its services through the use of the Internet and open them up to private investors. So both are areas that could complement each other and would be a logical consequence which is not a scam says onlinebetrug.

Through the decentralisation approach of the crypto currency, online brokers based on similar principles would not only be an interesting experiment, but even the consistent further development of the concept, which provides for independence from financial institutions. However, since there are currently no established brokers who would like to take such a risk, nor are there any plans for such an undertaking within the Bitcoin community, a pure Bitcoin broker is merely a quiet dream of the future.

Bitcoins could also be interesting as a currency for trading accounts due to the potential return from exchange rates. Currently, however, the crypto currency still lacks the acceptance and stability to actually be sufficiently attractive for investors in this respect.

What speaks against the crypto trader?

The high volatility of the crypto trader currency is considered problematic. The price fluctuations of Bitcoins still exceed those of the ruble many times over. In this way, in addition to the risks of the investment opportunities of the respective broker, the exchange rate risk would also be considerable. For the crypto trader account itself, however, even speculative investors usually choose stable currencies in order to enter into risks and yield opportunities in a more targeted manner. A trading account in Bitcoins would not provide a basis for responsible risk management, at least not at this stage.

In addition, it is to be expected that the target group for a trading account in the crypto currency would not be sufficiently large, since Bitcoins still suffer from the low distribution and acceptance. Although there are some Bitcoin enthusiasts who would certainly find such an offer attractive, they would not provide a sufficient number of customers to justify the increased organisational effort of another currency. Another problem is the fact that in most countries the handling of Bitcoins is not sufficiently clarified either legally or fiscally. This, too, would increase the speculative share of Bitcoin trading accounts and make such an offer even less attractive to the majority of investors.

A trading account in Bitcoins is therefore only likely if the acceptance and stability of the crypto currency has risen significantly and the legal framework is more stable.

Bitcoin, Futures & the Exchange: How to proceed

In an interview, NASDAQ CEO Adena Friedman gave details of plans for CME’s own futures program. Meanwhile, CME’s first round of futures is coming to an end. A look back.

In principle, they could not be more different: On the one hand a new crypto currency, designed for decentralisation and anonymity, on the other hand a traditional centralised institution and its instruments. As already in December CBOE and CME, NASDAQ now also wants to profit from Bitcoin with futures contracts.

In an interview with CNBC, Adena Friedman gave details of the futures contracts announced in November. As the interview shows, the company wants to set itself apart from the competition with its own futures programme.

While the futures of CBOE and CME focus on the price and its development, Nasdaq wants to shift this focus. It is much more of an investment than a tracking system. The main motivation she cites is the “network” effect and assumes that gradually more people want to enter the crypto business in order not to lose the connection.

However, there was no precise date and no definite decision about the Bitcoin revolution

While at the launch of the futures in December it was criticized that they were not well thought out, NASDAQ apparently wants to make sure: “We continue to keep a close eye on risk management and make sure we use the right Bitcoin revolution. We also make sure that the contracts are different from those that are already on the market”. Ultimately, however, we want to wait and see whether there is enough demand for the products. Looking back at the development of the Bitcoin revolution futures so far, this need – at least theoretically – seems to exist.

The launch of the first round of futures began on December 10 last year, with Bitcoin trading at $15,000. When the futures expired on 17 January, the price was 11,000 US dollars, as can be seen from the price trend.

CME’s second round of futures started on 18 December. At this time, the price was at the all-time high of 20,000 US dollars, which had not been beaten before. It has not yet come to an end – to be precise by 26 January.

In order to bring the whole thing into connection with the price development and possible profits, we would like to briefly remind you again of how futures contracts work. Anyone who “bets” on a price loss in the futures, is doing so-called shorting. In doing so, one agrees to buy a fixed quantity of a commodity at an agreed price at a certain point in time.

If you now have the right little hand, you can profit twice with this Bitcoin revolution

Those who buy at a favourable price can sell at a high price according to the review by onlinebetrug. If you sell at a high price, you can bet that the price will fall again. After the futures have expired, the Bitcoin revolution starts all over again: If the price then rises again, you can theoretically take it ad absurdum. All you have to do is bet correctly.

As chance would have it, the stars for experienced brokers were quite favorable for the right use shortly before, after and during the start of the futures.

So let’s play through the most favourable scenario for investors. Theoretically, he could have bought himself sometime before the start of the CBOE futures or even on the day of the launch. He would then have been able to buy short, betting that the price would fall again by 17 January (keyword: bloodbath). At the same time, that person would have sold again shortly afterwards, preferably at an all-time high, and thus reaped a first profit.

As luck would have it, the hitherto unbeaten all-time high of almost 20,000 US dollars coincides with the start of the second futures round on 18 December. If that lucky person had had his profit paid out, the first profit would have been reaped.

If they had then shorted again with the launch of the CME futures (possibly from profit), this person would presumably also go back with profits from history – provided that the price does not rise again to 20,000 US dollars by the day after tomorrow. If the price development follows this logic, the price would rise again after the expiration of the CME futures, i.e. on 26 January. Then the second CME round will start.

Surely there is a lot of conjunctive talk here, you have to be careful not to wear the aluminium hat on your head soon. But with so much correlation, it’s worth at least describing them. Aluhut or not: It remains exciting.

Why Warren Buffett is wrong – The eternal dispute between speculation and investment in the crypto ecosystem

Without a doubt, Warren Buffett is an outstanding investor who is rightly regarded as a luminary of value investing. His credo: “Invest only in things you understand”. With this promising slogan in mind, Warren Buffett’s investments have performed well for decades. This investment strategy brings many advantages, but is disadvantageous when it comes to new technologies that have yet to be explored. Since Buffett has no special technical know-how, he had already overslept investments in the large Internet companies. For example, it was only in 2008 that he invested in an IBM that was already very well established at the time.

Even several years later nothing seems to have changed in Warren Buffett’s investment behaviour. Since he openly admits not to understand blockchain and crypto currencies, he does not invest in them either. An absolutely consistent and legitimate attitude – who can claim to have fully penetrated the crypto economy?

Warren Buffett’s contradictions about the Bitcoin loophole

It only becomes contradictory when you still think you can judge a new market or a new technology. Buffett had already stated in an interview at the beginning of the year that crypto currencies will have a bad ending. Also in a current interview two days ago Buffett did not leave good hair at crypto currencies and stressed that these would be suitable at best as speculation object for gamblers – he basically denied an investment case for Bitcoin loophole crypto currencies.

Apart from the unfounded thesis that crypto currencies will have a bad end, the question arises as to how far Warren Buffett is right and crypto currencies are only suitable for speculation and not for investment. If one looks at the crypto exchanges and the overheating phenomena at the end of 2017, then it is quite obvious that Warren Buffett is right with his statements – all speculation.

More than just speculating: Why investments in the news spy market are possible

If, on the other hand, you take a closer look at the technology, Buffet’s assertion quickly cracks. According to Buffet, an investment is characterised by the news spy fact that the investor can generate a return from “production”. On a farm it is apples and potatoes that can be sold for money. In the case of a rented apartment, it is the rental income that is generated. And in the news spy company it is the profits from the sale of goods and services. But what is produced in the crypto economy?

If you look at crypto currencies such as Bitcoin or Monero, which serve as pure payment and value retention instruments, then according to Warren Buffett these are just as little investment objects as foreign exchange or gold. But what if a blockchain protocol produces the services that a company would otherwise earn? After all, according to Buffett’s definition one can very well invest in a service company, so the question arises why this cannot be the case with block chain platforms or utility tokens?

It’s about more than just crypto exchanges
A block-chain network can also be productive: more and more users (consumers) can be won over, services can be exchanged and developed, and profits can be distributed to the relevant actors via tokens – just like in a company, but decentralized. The fact that in reality there are hardly any commercial crypto-use cases that fall under Warren Buffett’s investment definition does not mean that investments in the crypto-economy are not possible. Those who invest in shares of companies may as well invest in tokens of blockchain start-ups.

Consequently, Buffett confuses the current situation on the crypto market, which is primarily speculatively driven, with the basic investment opportunities offered by the crypto ecosystem, unlike foreign exchange or commodities. Warren Buffett also ignores the possibility of tokenization, which is slowly taking hold of the crypto market. Via tokenized assets, in the sense of digital placeholders, one can finally invest in an apartment, an agricultural business, a ship or whatever that yields a return. It may not be the current impression, but the functionality of crypto currencies is not reduced to exchange trading, as Buffet assumes.

In short, the sharpness of the distinction between investment and speculation is less clear in the crypto economy than Warren Buffett claims. Even though Buffett may doubt the meaning of crypto currencies, investments in the

Contrary to all prohibitions: China continues to be a crypto major power

Last year, the Chinese central bank made tabula rasa on the crypto market and banned both ICOs and crypto exchange activities in the People’s Republic. Instead of throwing in the towel, the Chinese Exchanges became creative. Today they are as influential as ever. An inventory.

China as a promising Bitcoin revolution location

September 2017 was a black month for traders, Exchanges and Token-Issuer in China. Let’s take a look back at the Bitcoin revolution: On September 4, BTC-ECHO reported for the first time on the ban of all ICOs in the People’s Republic. The market for ICOs had really gained momentum for the first time in summer and Initial Coin Offerings were considered a “killer app” in the industry. The absolute Bitcoin revolution on the part of the government was a severe blow to China’s crypto economy.

But the Chinese government went one better. In the middle of the month, all crypto-exchanges operating in China were asked to “voluntarily cease” their activities by 30 September. The Exchange BTCC, one of the world’s oldest crypto trading centres, already announced the closure as a preventive measure.

Not only the Chinese crypto market suffered from the actions of the central bank, traders and investors around the world had to watch their portfolio turn red. Many panic sales caused prices to tumble, and total market capital shrank by a good third. During China’s period of weakness, its neighbour Japan also managed to rise to become the world’s largest crypto market.

The end of the Bitcoin loophole? Not by a long shot!

However, the Chinese crypto market was neither dead nor about to die. He went rather into cover, only to come back in full strength after the passing of winter. Look here: This explains the move of the largest crypto exchanges, which transferred their operational business to the Chinese Hong Kong Special Administrative Region. OKCoin and Huobi, under the new names OKEx and Huobi Pro, expanded the Exchanges on that occasion to include crypto-fiat Bitcoin loophole trading. Previously, the platforms had only offered crypto-to-crypto exchanges.

Another Hong Kong-based exchange even rose to become the world’s leading crypto exchange in the wake of the crypto ban in China. During the price rally in December and January in particular, a large proportion of all transactions were carried out via Binance. In the first quarter of 2018, Binance made a profit of around USD 200 million, a larger profit than Deutsche Bank (USD 146 million), Germany’s largest investment bank. The company also maintains its own crypto currency on the platform, the Binance Coin (BNB). If you trade against this, you as an investor receive discounts on transaction fees in the first four years.

And BTCC, which is rich in tradition, also continues to be active. Having also moved its headquarters to Hong Kong, it recently announced its relaunch. Following the example of Binance, the company wants to offer its own token for crypto trading in the future. In addition, the crypto-fiat trade has been extended to several trading pairs. However, the newly introduced points system is truly innovative: users are rewarded with points for actions on the platform, which they can later use for discounts on the platform.

The Exchanges, an important part of the Chinese crypto economy, have thus managed to stay on the ball and make the most of their situation. This is another reason why China continues to be a haven of innovation when it comes to blockchain technology. In 2017, more than half of all blockchain-related patents came from the People’s Republic, and this year it is unlikely to be less.

In addition, there are major projects that are already playing a major role in the current global crypto economy. The TRON project around the charismatic Justin Sun not only announces cooperations in a continuous loop, but since the launch of the Mainnet at the end of June has also been able to issue real tokens. Meanwhile, NEO is preparing to challenge Ethereum as the leading platform for ICO projects. Qtum should also be mentioned here, which quickly fades into the background due to the success of the other two Chinese crypto projects.

In terms of mining, the People’s Republic is a world power anyway. Bitmain, for example, comes from China, the global market leader in the production of ASIC miners. Although the supremacy of Bitmain’s Antminer has recently been challenged by its Japanese competitor GMO, Bitmain still retains its market power for the time being. In addition, Chinese miners still account for the largest part of the computing power of the Bitcoin network – even though the Chinese government has also attempted to regulate the network.