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Spotlight: The perception of Bitcoin merits as shortcomings

Despite the exponential capital appreciation in BTCUSD in 2017, the same has the awful flinch to begin with 2018 which is concerning matter for few class of investors and is prominent appeal for other class, like, the hedge fund companies that make money regardless of bullish and bearish trends, can it be possible even in cryptocurrency avenues?

Would you like to know the buzzing fact? And the buzzing fact is that the funds specializing in virtual currency market making and arbitrage strategies delivered first-quarter gains even as their mostly bullish peers lost 40% on average.

It is the general consensus that such investor class sentiment would certainly influence decisions to buy or sell bitcoin futures and, as a result, impact underlying Bitcoin pricing. Subsequently, the Bitcoin futures bull/bear ratio plays a pivotal role in an important indicator which could be utilized to speculate Bitcoin price trend.

When CBOE, the predominant US derivatives exchange that provides Bitcoin futures contracts, announced the settlement of its XBT futures contract for April month expiry last Friday, this has been the fourth successful contract settlement piloted since its launch in December.

There is an ongoing debate on how the futures curve should be calculated for bitcoin. The normal state of the markets still hasn't been determined. Bitcoin differs from many other commodities as it incurs little to no traditional storage costs. However holding bitcoin still poses a risk, since the holder could be hacked, misplace their private keys, or otherwise lose the currency.

Bitcoin’s dramatic rise has made it hard for even those in the highest spheres of finance, technology, and government to ignore – and many have an opinion about its approximate 168 percent gain in the past 12 months. But on the contrary, participants who’ve been tracking the price action since last December have the adverse opinion altogether.

If you consider turnaround time (TAT) of a normal overseas banking transaction, it may be 2-3 working days in case of a wire transfer, 10-15 days in case of LC depending on the complexity of the transaction.

Whereas the critics think that the bitcoin has low transaction speed that is perceived as the limitation of bitcoin’s effectiveness as a currency. Exchanges would run short of money and funds would get stuck waiting hours when huge demand is observed for bitcoin because they think the pioneer cryptocurrency network can only deal with 7 transactions a section. That means only 7 people worldwide can buy or sell using bitcoin every second. For comparison, visa handles 24,000 transactions a second. And most importantly, the charges of a bitcoin transaction is more than the cost of a wire transfer.

Some critics think that Bitcoin was pioneered as a digital currency. The robust technology enables only basic programming. This hinders bitcoin usage in more complicated situations like for smart automatically executing contracts. Think of it like a calculator compared to a computer. Programmable Blockchain (Ethereum being the most widely known example) have the potential to massively disrupt a wide array of sectors.

Few other critics seem to be dubious on the value of their bank account, modern world businessmen in the entire universe unsure about their funds while they are transacting. But Bitcoin wallets are usually secured to address hashes (random sequences of letters). When the holder of a wallet is identified all of their previous transactions and all of their future transactions are visible to anyone who downloads bitcoin’s ledger. This mechanism is not permitted to delete or change the history.

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