Should i be investing in Bitcoins now


“Bitcoin price surges as future
trading begins” – despite bubble warnings, says Business live.
We do quite a lot of video based blogs around Bitcoin.
Its reason being is I get asked about
bitcoin on a daily basis – I am a trader of Bitcoin.
I quite enjoyed what’s happened to
the bitcoin price over recent months obviously.
But what we have to understand is,
that that it is going to come back down at some point
to a level that represents the actual true value of bitcoin.
And what we mean by that, there is a
functional
use of bitcoin in terms of a value store, or in terms of actually using it to transact on goods
and at some point there will be a
market correction.
So the bits that we just
wanted to update you on in this video.
We know that you are able to buy
futures contracts for bitcoins now.
So what that really means is there is a regulated trading venue
that allows institutional investors to be able to trade futures contracts,
which is like owning the underlying asset,
it will cause prices to move around.
But what we have to understand – this doesn’t necessarily mean that the
price of bitcoin is going to go through the
roof.
We know that it has jumped quite
considerably today,
I think we’re up at sort of 16 17 maybe 20 per cent just on today anyway
but just because now we’ve got
institutional investors and now that we’ve got some form of futures contract capability,
that can temper the price as well
basically because, what actually happens is if we can now
take a short position, i.e can against it going down.
It allows institutional investors to be able to hedge their position.
So this all sounds a bit complicated, but if you’re looking between all of the crypto currencies,
they all move around and that will correlate depending
on if it’s Ethereum, or bitcoin or Ripple, or something of that description
What will actually happen is if we can make large sums of bets on the price actually going down
then it means that you can hedge
across other cryptocurrencies.
So i wont get into large amounts of detail there, but just because we’re able to trade
futures contracts,
may actually level out the price of Bitcoin.
because, I think the problems that we are seeing at the moment,
people are taking it off the shelf in terms
of accepting bitcoin only because it
just didn’t really take off.
You know there was talk of Amazon accepting Bitcoin – That actually
hasn’t sort of come out yet,
we’re still waiting to see if the
news of that actually comes out.
We know there’s been some hacking attempts, some hacking scandals, and security scandals around Bitcoin.
So we need to watch out for that.
And also you know there the transaction fees within bitcoin as well, i think it is $7
I don’t actually know the fine detail on that.
But it stops it becoming a sort of “micro payments Gateway”.
We know with bitcoin, it takes three and a half minutes to update globally on the ledger.
The other crypto currencies can be done much much faster, and a lot more instantaneous.
We know that there’s a bit of a
myth surrounding Satoshi Nakamoto,
who was the main cryptographer for Bitcoin, and I think that may have actually
had its day.
So I’m not saying it’s going to
crash now – but these are the things that we need to be looking out for.
To me, i definitely think that “crypto-currencies” definitely have a value.
I enjoy gambling on Bitcoin, I enjoy it, it is like going for a day at the races for me.
But I’m looking at things like
Ethereum,
with a lot less “Percieved Value” within the market,
making it easier to track its true value as an asset.

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