Photo credit: Javier Graterol

Bitcoin bumps up again

1 min read

This Sunday, Bitcoin futures went live for the first-time and shot up over $1,000 to now $17,000. The increasingly popular virtual currency made its debut on a major US exchange on the Chicago Board Options Exchange, a Chicago-based group.

The buyer-seller frenzy shut down the company’s website.

Bitcoin futures means that buyers and sellers can predict that the market will go up or down in the form of contracts.

According to Business Insider, Bitcoin futures legitimizes the cryptocurrency, and possibly can reduce the volatility of the digital currency. Before Sunday, Bitcoin trades went on unregulated markets, but are now on the CME and CFE.

Cryptocurrency is internet-based currencies and payment that do not require banks to process payments. Unlike other traditional currency, the central bank does not hold cryptocurrency because it is developed and given value online through what is called cryptograph algorithms.

Here is how it works: Online transactions are recorded through something called Blockchain Technology which is a global network of computers jointly managing the database that records online exchanges. Through Blockchain, online users operate as virtual miners who verify transactions.

After transactions are verified, those who provided a service or exchanged a product or good are paid via digital tokens. The transactions, how much is paid and who is paid was designed to be anonymous; however, you can cash out your cryptocurrency for traditional currency, as in most cases, it takes non-digital currency to acquire cryptocurrency, but at a lower value of the dollar.

Buck the Bubble Warning

Since the rise of Bitcoin, now you see warnings of a bubble coming. This scares possible investors; however, the time to invest is now, as a crash is sure to come.

Another thing, one virtual token of Bitcoin is over $17,000, but you do not have to put in the full amount. Like I said, I put in $40 some years ago when it was about $150 to $200. Most importantly, is to invest in order for you to move into the future of another currency.

However, there are many more options for cryptocurrency like Ethereum, which is seen as a more stable cryptocurrency that will make it past the bubble.

And if you are still gun shy, you can always invest in old school metals like gold, silver and platinum. They never will do you wrong.

Arkitect Duane Reed focuses on the market and currency.
Arkitect Duane Reed focuses on the market and currency.

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