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Bitcoin Derivatives, CME Futures & Crypto as a Financial Instrument

CME just announced they are going to launch futures contracts for Bitcoin due to strong demand. CME is the largest exchange and this is a big step towards maturity of the Bitcoin market, most likely a lot of liquidity will flow into the futures and some large hedge players are going to make use of Bitcoin as a trading instrument.

Bitcoin can send money directly from person to person across borders and digitally, also you can store your money anywhere, paper or digitally making it the perfect store for money/wealth and the perfect transfer due to it's decentralized protocol and incentive for users to secure the network.

Larger players in the financial markets recognize this too and are always looking for ways to diversify their portfolio, cryptocurrencies are a new asset class and are a great hedge against traditional fiat money. Right now platforms like LedgerX and CME allow for institutions to easily access the Bitcoin market without all the hassle that comes with using the network.

Because of the fixed supply and the hype and the defined intrinsic value of Bitcoin price rallied up to $7600, we saw a large accumulation in 2015 after a tough bear market which caught a lot of new crypto traders off guard. Towards 2016 signs were showing that CFTC was going to approve more products which would lead to the real maturity of the Bitcoin market.

After this everyone will be anticipating an ETF, I think we first have to see liquidity consolidate across the options and futures markets and have to see how this is gonna affect price. Right now the hype is strong and we are reaching levels of irrational exuberance but there's still a lot of opportunity in the altcoin markets. The future is bright for cryptocurrencies as long as we have the US government and it's institutions on our side, luckily Wall Street is always ready to steal money from the naive so time to go all in.

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