The crazy rise in cryptocurrencies threatens global banking giants

Frightened traditional bankers are now finding that cryptocurrencies have come to stay in the wake of the changing world economy and causing an unprecedented shock to those caught unprepared. It is very likely that the first victims of blockchain applications are seemingly banking giants like Deutsche Bank!

Swiss money-makers worldwide are rushing to embrace blockchain applications, and an entire area, Zug Canton with the homonymous capital, is hosting blockchain start-ups. We're talking about Zug's Crypto Valley.

The municipality had a total population of 30,205 as of December 31, 2017. The official language of Chug is German but the main spoken language is the local variant of the Germanic Germanic German dialect.

So the frenzy of the days is that the bitcoin trading price on the other side of the Atlantic, where its heart is beating badly or badly, has broken the $ 10,000 psychological threshold. The word 'psychological' says it all. We like round numbers and often use them. So all the 'big' analysts use them - especially to address the simple world. So they said $ 2,000 would be the turning point of the rising trend. When it was not reversed they put a $ 4,000 limit. when that limit was exceeded everyone began to say anything. Everyone, of course, has their arguments, their studies, their technical analysis, and they create a diagram that proves the 'truth' of what they publish.

Here's to note that 'economists' and 'analysts' view bitcoin as they see stocks and derivatives. But bitcoin is something different .

At present, the large mass of speculators is moving towards the release by the CME of bitcoin futures (Bitcoin Futures). A move translated by traditional investors as a step towards further 'legalizing and accepting' bitcoin. Add to that the huge returns of bitcoin - such that traditional investment products have never seen.

So how will Bitcoin Futures work? Their buyers will be able to sign contracts to sell Bitcoin at a pre-agreed value in US dollars at a future specific date. Upon expiry of this contract, the customer (buyer of futures) will settle the difference between the current bitcoin sale price and the price previously fixed, either by receiving money or paying it. This means that speculation about the future course of the value of bitcoin will be made without buying 'real' bitcoin, and without exposing investors to the risk of losing it. So what will be the impact of the above on bitcoin trading value in the near future. Anyway after the buyers? Bitcoin Futures will not buy bitcoin, it will not raise its price pressure.

Let's see how Bloomberg's Matt Levine explains the paradox of the story: If you buy Bitcoin Futures, you probably do it because you think its value will go up. If you believe that its value will go up, this is probably because you believe it will become more widely accepted as a currency and as a wealth storage medium by the present financial system. But if you really believed the above, you would just buy bitcoin. You buy futures because deep down inside you prefer this system. You actually adopt an argument against buying it!

Let us also note that the large fluctuations in the price of bitcoin make it attractive to the speculative part of investors, while large institutional investors try to create products that will reduce the large fluctuations. If they do, they will 'push' speculators into other investment options. What will happen will show us the future that looks exciting!

Every start and difficult. Perhaps the best way to get an idea of ​​how the whole system works is by watching the video below:

So in summary, Bitcoin:

It is a digital trading system over the Internet and therefore only exists within digital systems, ie it has no material substance (banknotes eg). Bitcoin digital coins are stored in the user's digital wallet It has no central control and its function is based on the communication of computers between them via the Internet

Any computer systems that contribute their processing power to the Bitcoin network, create currencies, shield the network from attacks, and check the correctness and validity of transactions made on it (this process is optional) Currency creation is controllable and thus prevents phenomena such as inflation, which reduces the value of a currency Exchanging Bitcoins between users, anywhere in the world, is easy with the use of a program Bitcoins transfer fees are infinite (less than five cents euro)

There are services that exchange Bitcoins for other currencies such as euros, dollars, etc or other cryptocurrencies Bitcoin transactions are irreversible, that is, if we send coins to a friend, we cannot reverse the transaction. The only way to get our coins back is to make a new transaction from our friend to us.