Bitcoin has been all of the rage in all types of financial news media. This is because the value of this cryptocurrency has been on the rise. It has risen incredibly fast just in the last year or so. The price of Bitcoin started the year at around one-thousand dollars. Now, it is trading around eighteen-thousand dollars per Bitcoin.
Regulators have now decided to allow Bitcoin futures to be allowed to be traded. They want to allow people to exchange their best guesses on what the future price of Bitcoins will be. Most expect that this will be an incredibly volatile market, but that is part of the name of the game.
On the first day of trading in the futures market, the Bitcoin futures are a little higher according to CNBC. This means that traders feel that the momentum that has carried Bitcoin to the heights that it has reached at this point is not over just yet. That being said, some of the quick rise has been tempered to some extent. It is not climbing at the rate that it was earlier this month.
Some experts are concerned that the prices that Bitcoin is trading at right now is far too high for what you get. They say the fact that the currency is not backed up by any particular government or any agency at all. They say that the price only remains as high as it is if people continue to believe that Bitcoin is actually worth something. As soon as the trust in this particular currency evaporates, so too does the value of it. People could literally lose everything that they have put into it overnight.
Even though the futures for Bitcoin were slightly higher, the fact of the matter is that Bitcoin itself dropped in price by about one percent at the same time. People still feel that the currency is going to go higher even if it is not at this exact moment. Is this just unbridled excitement at this point or is there something more to it? Only time can tell on this particular question. However, the fact that the futures are being traded at this point is a sign that the institutions of Wall Street see Bitcoin as more legitimate than they once did.