The global bitcoin trading volume rose sharply in the second half of 2017, hitting a new all-time high in December. The total value of all bitcoins traded on exchanges reached $US13.7 billion in the month of December, more than double the previous record of $US4.6 billion set in November 2013. The surge in trading activity was driven by a combination of factors, including the growing popularity of bitcoin as an investment asset, the introduction of new financial products that made it easier to trade bitcoin, and rising concerns about government regulation of the cryptocurrency market. I recommend you to do some research for becoming a bitcoin buyer.
In the first half of 2017, the total value of all bitcoins traded on exchanges was just over $US1 billion. But as investor interest in bitcoin grew and new financial products were launched, that figure rose sharply. By the end of the year, it had reached $US13.7 billion.
The majority of bitcoin trading takes place on a handful of major exchanges, including Bitfinex, Coinbase, and Bittrex. These exchanges allow investors to buy and sell bitcoins using fiat currencies like the US dollar, as well as other cryptocurrencies like ether and litecoin.
Investor interest in bitcoin has been driven by a number of factors, including the cryptocurrency’s limited supply, its use as a hedge against inflation, and its potential for long-term capital gains. In addition, the launch of new financial products that make it easier to trade bitcoin has also contributed to the growth in trading activity.
One of the most popular new products is the bitcoin futures contract, which was launched by the Chicago Mercantile Exchange (CME) in December 2017. Futures contracts are financial instruments that allow investors to bet on the future price of an asset. The CME bitcoin futures contract allows investors to bet on whether the price of bitcoin will rise or fall in the future.
The launch of bitcoin futures by a major exchange like the CME represents a significant milestone for the cryptocurrency, as it legitimizes it as an investment asset and could make it more accessible to a wider range of investors.
Another factor that has likely contributed to the growth in bitcoin trading is increasing regulatory scrutiny of the cryptocurrency market. In particular, there is growing concern about the possibility of government crackdowns on cryptocurrency exchanges and initial coin offerings (ICOs).
Government regulation is one of the biggest risks facing the cryptocurrency market, as it could stifle innovation and hamper the growth of the sector. However, the introduction of new regulations could also provide a boost to the industry by increasing confidence among investors and making it more difficult for fraudulent projects to raise funds.
Overall, the increasing global trade in bitcoin is a positive development for the cryptocurrency market, as it indicates growing interest from both retail and institutional investors. However, the regulatory environment remains a risk factor that could limit the upside potential for bitcoin prices in the future.
Benefits of Bitcoin Trading
When it comes to trading, there are many different asset classes that you can choose from. However, not all of them are created equal. Some, like stocks and forex, are well known and have been around for decades. Others, like cryptocurrencies, are relatively new and therefore come with a higher degree of risk.
But which one should you trade?
If you’re looking for an asset class that has the potential to generate high returns, then you should consider bitcoin trading. Here are four reasons why:
1. Bitcoin is a volatile asset class
Bitcoin is well-known for its volatility. This means that prices can move up or down quite rapidly in a short period of time. While this might seem risky, it also means that there is the potential for high returns.
2. Bitcoin is a global asset class
Bitcoin is not tied to any one country or economy. This makes it a very attractive investment for those who are looking to diversify their portfolio.
3. Bitcoin is a scarce asset class
There will only ever be 21 million bitcoins in existence. This limited supply combined with increasing demand could lead to higher prices in the future.
4. Bitcoin is an emerging asset class
Bitcoin is still in its early stages of development and adoption. This means that there is a lot of potential for growth in the years ahead.
