BTSE Cryptocurrency Exchange Now Offers Bitcoin-linked Gold Futures

By Herrington230 | Crypto world stories | 11 Jun 2020


The BTSE cryptocurrency exchange became the first representative of the industry to launch gold futures contracts, the price of which is set in BTC.

BTSE said "This is a particularly interesting time for this option to be brought to the table. In light of the recent world tensions, Bitcoin seems to be joining gold in its acceptance as a store of wealth." 

By combining Bitcoin and Gold into one index the BTSE exchange gives users a unique opportunity to compare two assets, which are often considered as a hedging tool against a potential recession and rising inflation.

Unlike ordinary futures, perpetual contracts have a forced liquidation mechanism. When the spot price crosses a certain mark, the contract is automatically executed, and its owner loses the invested money.

However, in a comment to CoinDesk, a BTSE spokesman stated that there was a low risk of permanent liquidation of contracts priced at BTC.

He said, “If the two assets have a positive correlation, the volatility of this new instrument will be even lower than in the Gold / USD pair.” 

Thus, the exchange believes that its new contracts will be somewhat stable.

Commenting on the news, some users have already made fun of the famous critic of bitcoin and the preacher of the value of gold Peter Schiff.

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