A stark warning came from a UK regulator about the future of Bitcoin. He has warned that those who have their money tied up in Bitcoin at the moment had better prepare themselves for the reality that they may end up losing it all. The regulator said that the fact that the currency does not have the backing of any government in the world makes it particularly vulnerable to a crash according to CNBC.com. The reality is, the currency is only worth what people believe it is worth on a given day. If that trust collapses at some point, then so does the value of the currency.
The increases in the value of Bitcoin just this year have been something to marvel at. Most did not expect that it would do as well as it has up to this point. Even those who are the most avid of fans did not expect the kind of moves that we have seen out of the currency. As of the time of this writing, the currency is north of $17,000 per Bitcoin on most major exchanges. That is compared to a price of less than $1,000 at the start of the year.
Recently, regulators in the United States approved the creation of a futures market for Bitcoin. This means that those who wish to purchase contracts related to the future price of Bitcoin can do so on major futures markets in the United States. Those who like cryptocurrencies say that this is a major step in the right direction towards legitimizing these currencies. They also believe that it is long overdo for their beloved Bitcoin.
A lot of the major Wall Street players brushed aside the notion of Bitcoin when it was first coming around. They did not believe that it was an asset that had any real value to it. For some people, that may have been true, but that is starting to change in a lot of ways for many others. These days, some on Wall Street are still sticking their nose up at cryptocurrencies, but an increasing number of them are starting to see the value in something like this.
Allowing the futures contracts to trade on exchanges is a big step in the right direction when it comes to how cryptocurrencies are perceived by the public. They can appreciate the fact that the exchanges find them to be legitimate enough to trade future contracts on them.