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RE: Bitcoin: The Bull Market of 2017
The current rally is absolutely breathtaking to watch, but I think there are reasons to be very cautious right now.
The new CME futures may put the brakes on the rally. The futures markets never really helped the precious metals, and I don't think bitcoin will benefit either.
We've had bitcoin futures for the last several years on platforms like Bitmex and OKCoin, but those futures markets did not see institutional participation from the likes of JP Morgan and Goldman Sachs.
The CME futures that are supposed to launch in December are a whole different ball game!!
My 2 Satoshi.
Yeah, that's a good point, but precious metals are mostly just on paper, right? I've heard claims that some gold is owned and claimed in a fractional reserve way by many different entities. Even though it's physical, what actually gets traded are just (often) unconfirmed IOU's. Yes, the same thing could happen for cryptocurrencies, but I'm hoping the people in this space will continue to push for all exchanges to use a proof of reserves approach to demonstrate they actually have the cryptocurrency they are trading.
We should have learned our lessons from MtGox to use things like BitShares more. Unfortunately, some people never learn until they personally get burned.