Bitcoin futures (did not) create the chaos people were hoping for (sorry). 🙇

In my humble opinion...

here's your answer to the fiat vs. crypto debate.

 

Coin of the Day

Decentralized and safe online marketplace

(CRYPTO: CMT) While blockchain has many potential applications, there are some limitations in the current state of the technology deterring mass adoption. The blockchain is often too slow, and smart contracts too limited. CyberMiles is a new blockchain platform developed by 5xlab, a blockchain development laboratory, for business and marketplace applications that provide smart business contracts and software on the CyberMiles blockchain optimized for e-commerce transaction that is scalable and capable of processing high throughput. Through its platform, CyberMiles will help facilitate marketplace transactions with a high level of security and transparency. Users will be able to easily solicit loans because their identity, credit history, reputation and past transactions will be available on the blockchain. CyberMiles blockchain will be utilized by 5 miles, one of the leading shopping apps in the U.S. which has generated over 3 billion USD in transactions last year.

Bitcoin futures were released last night, and Bitcoin's price ultimately spiked, rather than crash (we're looking at you, naysayers). Scalability growing pains are being felt all around. 

Christmas seems to have come early in the form of CBOE's Bitcoin futures contracts, which were released last night at 6 PM EST. Naturally, the CBOE website crashed almost immediately from heavy traffic use, while Bitcoin's price increased about 10% within the first few minutes of trading. Nice. Bitcoin futures can now be traded under the ticker symbol "XBT," and the first contract expires (cannot be traded after) January 17th. FYI: Under the "symbol" category, the word "F8" corresponds to the month and year the contract expires; F = January, and 8 = 2018. Each contract size is the equivalent to one Bitcoin and is only redeemable for cash. The futures will have no price limit, just a time limit for the order book, and all prices are taken from the crypto exchange Gemini.

After waiting anxiously to see how the markets would react to this new currency, people were somewhat disappointed to see what we in the crypto community would consider 'stability.' Andreas Antonopoulos, Bitcoin evangelist and beloved long-time member of the cryptocurrency space, released a fantastic video delineating how Bitcoin futures work (watch it below). A few takeaways? Miners will the be the ones shorting Bitcoin (we know, a bit surprising) so that they can accurately predict their electricity bills, and stand to gain a lot more than they lose.

It seems that everyone is getting crypto-FOMO; from banks to governments, 2018 is looking to be an epic year in the form of mainstream adoption. Pay attention.

The fear of missing out is strong. There's still a lot of anxiety being passed around online, as no one's quite sure as to how crypto's prices will react in the long term. Those in the more traditional financial world are relieved, hoping it'll help reduce the volatility that Bitcoin has famously established over the past nine years. Others think it will trigger an overall crash, which will result in a correction period of about a year (similar to Bitcoin's previous dip a few years back) and mimic the traditional financial charts, which often begin the year weak and build to a stronger performance. ZeroHedge published an interesting article pointing out that the futures contracts don't precisely follow Satoshi's true vision – whatever that means to you (it's an interesting read, go check it out).

 

Finally, some enthusiasts believe that the futures will create a sense of affirmation in the traditional market, allowing the coin to become more liquid and perhaps even spur an ETF (exchange-traded fund) – although a key downside is that this would result in Bitcoin being classified as a security. Hm. Nonetheless, people are somewhat freaked out but mostly fascinated with this early mainstream adoption of Bitcoin. We'll leave you with the thoughts of New York Stock Exchange (NYSE) Chairman, Jeff Sprecher, who said yesterday that he and the exchange, may be stupid for not being first [to introduce Bitcoin futures]… I don’t have the answers, I wish I knew… I don’t know what to make of cryptocurrencies.” Their reluctance to move towards futures surprised us all since the NYSE was the first to introduce Bitcoin indexes las summer. Bummer.

 

Bulgaria's gov't is "shocked" to find it's confiscated Bitcoins are now worth a jaw-dropping $3 billion; 18% of their national debt. Talk about a liquidity problem.

Still looking for a definitive guide to those pesky Bitcoin forks? Here's a list (with some analysis), so your coworkers will stop asking you. 

There are over 1,000 Bitcoin "whales" out there, but they own over 40% of the Bitcoins in circulation. Those pump 'n dumps happen for a reason, guys.

People are worried that governments are using crypto as an excuse to spy on its citizens. Our advice? Pay your freaking taxes and be as legally compliant as possible.

Coin to Watch

Litecoin (LTC) once again stunned us, thanks to their partnership with Steam.

Daily LOL

Hodl is life.