Marking the ninth anniversary of Satoshi Nakamoto’s revolutionary white paper, the CBOE Global Markets and the CME Group decided to introduce Bitcoin to their futures trading platform. This unprecedented move by some of the largest financial institutions in the world can be seen as a pivotal moment in the digital currency’s history. Without a doubt, the future of blockchain technology has never been brighter.
Despite claims of Bitcoin being a bubble reminiscent to that of the Tulip Mania, it is undeniable that 2017 has been a phenomenal year for the world’s largest cryptocurrency. From media exposure to wallet downloads to trading volumes and market capitalization, Bitcoin has shown signs of exponential growth across nearly all metrics of adoption.
Take a look at the comparison between the Google search trends for ‘buy bitcoin’ and ‘buy gold’:
SOURCE: Google Trends
The addition of Bitcoin to CBOE and CME’s offerings has effectively integrated the virtual currency into traditional, regulated markets, which increases its legitimacy and helps dissuade those who doubt its longevity and think that it’s a fraud. As the word ‘Bitcoin’ becomes more and more of a household term, the number of people who believe in its technology has been gradually increasing.
Author Andreas Antonopoulos once said:
“I am uniquely allergic to the word ‘legitimacy,’ it makes me want to vomit when warmongering, war profiteering bankers use it to describe Bitcoin. That takes a lot of audacity.”
He is right. Blockchain, the technology that powers Bitcoin and other cryptocurrencies, should give banks a run for their money. The decentralized blockchain system that facilitates Bitcoin transactions is everything that the modern financial system isn’t – it allows us to transfer digital cash in vast amounts, across any border, instantaneously, with a minimal transaction fee. The blockchain ensures a secure and fraud-proof transaction experience with no transaction limit, without having to worry about tax liabilities when it comes to overseas transactions.
The modern financial system is based on a double-entry bookkeeping system – a system that revolutionized the field of financial accounting during the Renaissance period. As a comparison, the blockchain technology is based on a triple-entry system. Now that it has been approximately 300 years since the end of the Renaissance period, the financial system that we know of is gradually becoming outdated and it could be as severely challenged by the new and upcoming blockchain technology as newspapers were by online news sources.
However, Bitcoin and other cryptocurrencies might not be the most reliable way of storing value, unlike good old fiat currencies. This is because Bitcoin is famous (or infamous) for its price fluctuations – the price of Bitcoin can increase by 1000% in less than a year before losing nearly $10,000 in a matter of days. Nonetheless, it is the technology behind Bitcoin – blockchain technology – that banks have to integrate into their system if they wish to remain in business.
Instant Crypto Credit Lines™ from only 5.9% APR. Earn up to 8% interest per year on your Stablecoins, USD, EUR & GBP. $100 million custodial insurance.
Follow us on Social Media and subscribe to our free crypto newsletter!
Diskutiere mit uns!
This post may contain promotional links that help us fund the site. When you click on the links, we receive a commission - but the prices do not change for you! :)
Disclaimer: The authors of this website may have invested in crypto currencies themselves. They are not financial advisors and only express their opinions. Anyone considering investing in crypto currencies should be well informed about these high-risk assets.
Trading with financial products, especially with CFDs involves a high level of risk and is therefore not suitable for security-conscious investors. CFDs are complex instruments and carry a high risk of losing money quickly through leverage. Be aware that most private Investors lose money, if they decide to trade CFDs. Any type of trading and speculation in financial products that can produce an unusually high return is also associated with increased risk to lose money. Note that past gains are no guarantee of positive results in the future.
You might also like
More from Blockchain
The second largest crypto-asset in the world is progressing rapidly to establish itself as the cornerstone of the new decentralized …
Tornado Cash - a popular mixer service aiming to make Ethereum transactions private announced on May 21 that it …