Following the news that the value of bitcoin rose to its historical highest, David Coker explained what Bitcoin was and how related investments worked before going on to assess how the cryptocurrency’s future may play out.
He wrote: “With last week’s announcement by The Chicago Mercantile Exchange (CME) of their plans to launch Bitcoin futures contracts, cryptocurrencies have taken a giant step closer to being considered bona fide investments. Bitcoin futures will allow market participants to control risk, either reducing or transferring it to other market participants as they might choose.
“Once CME’s derivatives have been listed and are available for trading, much of bitcoin’s well known volatility may be reduced, thus making the cryptocurrency more attractive to hold. In other words, to invest in. So, the long term case to hold bitcoin is clear: not only is it the largest, most well-known and widely accepted cryptocurrency, CME’s embracement is just the start,” he added.
Coker also explained why the younger generation is especially attracted to Bitcoin. “Bitcoin appeals to younger people for one simple reason: they are attracted to almost anything digital. This is the generation for whom its normal to buy entertainment digitally. To talk to a software bot rather than a real person. Digital is normal for them.”