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Bitcoin Futures Shake the Market

Written by Alexandra Perry
Posted November 5, 2017

Alexandra, here...

I am writing you from San Francisco, where I have spent the last couple days diving deeper into the California digital currency community. 

Trust me, if there was ever a city for digital currency to take root, San Francisco is it.

Open to new ideas and flush with talented techies, this city is booming with digital currency businesses. 

That said, my main reason for visiting wasn't the city itself, but a very specific house.

This home, nestled on one of the numerous hillsides in the Potrero Hill neighborhood, is known as the Crypto Castle. 

Perhaps you've heard of it. In the past year, the Crypto Castle has been visited by both CNBC and Business Insider

The occupants of this San Fran residence are both crypto enthusiasts and strong players in the space. Many of them have made fortunes on cryptocurrency and welcome the opportunity to educate newcomers curious about digital assets.

For me personally, visiting the Crypto Castle was a dream come true. As a native (now displaced) Californian, I felt it was somewhat my duty to see these young entrepreneurs busy enacting change in my birth state. 

So I contacted Jeremy Gardner on Twitter.

Gardner became a self-made Bitcoin millionaire at 25. He is heavily involved in the digital currency space, founding the Blockchain Education Network in 2015. He also launched a startup known as Augur in 2013. 

If that name sounds familiar to you, it's because Augur did an initial coin offering (ICO) in 2015, and the token has generated a lot of press. I will break down some of the technology and promise behind the product when I write up the full interview. 

Jeremy quickly helped me set up a visit to the Crypto Castle.

Yesterday, around the same time that Bitcoin broke $7,100 in value, my feet were resting on this doormat: 

Bitcoin House

The interview that ensued was incredible.

In fact, even though I said I was going to write down the interview and share it with Wealth Daily readers today, I don't believe I can cover all the conversation topics by deadline. 

You see, this article has to be to my editors in just a few hours, which is nowhere near the time it will take to dissect some of the great talking points Jeremy and I chatted about.

Those talking points range from the future of ICOs to the price of Bitcoin and other digital assets as the market matures. Jeremy shared some truly unique insights about digital tokens and the blockchain space. 

That said, I am going to start laying out this conversation on my way home from California, so you can expect it in your inbox next week. 

For now, I want to take a look at something else major happening in the Bitcoin space — an event that pushed Bitcoin's price to a new all-time high. 

Investors woke up on Monday to hear PayPal co-founder and Donald Trump's tech advisor Peter Thiel state that we are "underestimating" Bitcoin. 

This was big news, providing another powerful testimonial from someone who truly understands the tech. But it wasn't Bitcoin's best moment. 

That came with the promise of a Bitcoin futures contract from the CME, a decision that whipped the market into a frenzy. 

Bitcoin Futures Pushes Price Skyward

$5,750.

That's how much Bitcoin was worth on October 28th. As I write this, Bitcoin is sitting around $7,200. 

Now, there are many things fueling that price, including the coming SegWit2x event (projected to hit between November 16th and 18th).

That said, there is no denying the powerful impact the CME's announcement had on Bitcoin's price. 

On October 31st, the CME Group announced that it planned to offer Bitcoin futures by the end of 2017. The group is simply waiting on regulatory review from the U.S. Commodity Futures Trading Commission (CFTC).

For those who are unaware, the CME Group is the holding company behind the Dow Jones stock index and many of the world’s largest exchanges. This includes the Chicago Mercantile Exchange (Merc), which is the largest derivatives exchange by volume.  

So it making a play into the digital currency market is a fairly big deal. 

Not only does it signal more widespread acceptance for Bitcoin and other digital assets, but it also shows that larger financial entities now consider Bitcoin too big to ignore. 

Bitcoin: Too Big to Ignore

2017 was the year Bitcoin (and the rest of the digital currency market) grew up. 

And the introduction of Bitcoin futures could take this growth to a new level. 

As I said, the CME's announcement indicates that the group recognized that Bitcoin is simply too big to ignore.

It sets up Bitcoin as a more established asset, like gold or oil. CME could (in theory) make futures, options, or derivatives around anything, yet it only does so if it feels that item has a purpose beyond mere speculation.

On another note, Bitcoin futures would provide investors with another way to profit from the digital asset. 

And the CME isn't the only one seeing the demand. In the last year, the media has been buzzing with stories of Bitcoin adoption and education. 

According to LendEDU, 78.5% of Americans have now heard of Bitcoin.

The digital token has been trending on multiple social media sites, and this has investors swarming to exchanges. In June 2017, digital currency exchange Coinbase added over 1 million accounts in one month. 

Throughout this year, I have witnessed multiple corporate events and had many interactions that indicate increased adoption is coming.

One such event was my interview with Chris Kline, the COO and co-founder of San Francisco company BitcoinIRA. BitcoinIRA helps investors set up digital currency-focused IRAs. 

I have spoken with Chris twice now, and one point of our conversation still sticks with me. Chris has emphasized a volume increase in demand for Bitcoin IRAs, an increase that really kicked off at the start of 2017. 

Such demand demonstrates that more and more investors consider Bitcoin a good investment and store of value and are looking for ways to profit.

If you are one such investor, I encourage you to take advantage of our digital currency training course, a service that helps investors tackle the basics of investing in Bitcoin and other altcoins. 

This comprehensive guide was compiled over the course of a year. It includes a 44-page e-book that will help you break down some of the top technologies on the market and a monthly email that highlights both major events in the space and new emerging technologies. 

And, thanks to Jason Stutman, the investment director of our top-performing digital currency newsletter Technology and Opportunity, I can offer you this service for FREE. 

Click here to learn more.

All the best,

alexandra-perry-signature

Alexandra Perry

P.S. Keep an eye on your inbox for our full interview coverage of the Crypto Castle.

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