What Is Bitcoin's Future?
The Chicago Board Options Exchange announced that it will no longer offer new futures contracts on the trading of Bitcoin. The existing futures contracts that are in place are set to expire in April, May & June. After they run their course there will not be anymore trading in Bitcoin on the exchange.
This move is not exactly a surprise to the market as Bitcoin has seen steadily declining trading volumes for its futures contracts. When the CBOE initially launched the trading of Bitcoin futures it was hailed as a major monumental moment for the digital currency. What had once been considered a joke by many and shunned by most was now being respected by Wall Street. However, that respect coincided with the peak of the Bitcoin prices which topped nearly $20,000 per coin in December of 2017. These days Bitcoin trades between $3,500 and $4,000 per coin.
However, the news is not all bad for Bitcoin believers. There are several respected exchanges expected to release futures products that settle in actual Bicoins during 2019. Perhaps the trading volumes will once again rise in time if greater adoption of Bitcoin and other digital currencies continues to take place in society. Bitcoin's adoption has been growing astronomically over the last decade.
Some believe that the idea of localized digital currencies could take hold. Especially with products such as photographs, Eastman Kodak explored a digital coin last year, but gave up the process. But, new exchanges such as the Gemini Digital Asset Exchange found by the Winklevoss twins of Facebook fame, have seen consistently strong daily volumes, even as the price has dropped.
Written by Alexander Fleiss