CME to launch bitcoin futures

Tammy Harvey
November 3, 2017

Setting up a new record in the cryptocurrency history, Bitcoin hit through $6,600 mark on Wednesday. The rise follows news that the world's largest derivatives marketplace operator, CME Group, will start offering Bitcoin futures in response to client demand by the fourth quarter this year. And now this remarkable surge yet again!

The snapshot record average high was based on the average price of Bitcoin across the globe with data taken from US, Japan, South Korea, Hong Kong, and European exchanges.

The new contract will be cash-settled, based on the CME CF Bitcoin Reference Rate (BRR), which provides a once-a-day reference rate for the United States dollar price of bitcoin. Moreover, such a step suggests that Bitcoin may become an officially recognized currency.

This year has certainly been an interesting one for bitcoin. An entire industry has emerged to mine bitcoin, sell digital mining equipment and offer bitcoin trading services.

Cryptocurrency dealers might have to face closure in days to come.

Yet despite the negative implications, the downs in the price are usually ignored by the investors.

Speculators believe that Bitcoin futures are not the only reason behind the Bitcoin surge.

Still, analysts have remarked that the increase comes at a time when bitcoin has never been more visible in the public eye, with business leaders and investment luminaries now discussing bitcoin on an nearly daily basis.

Legendary stock investor and billionaire Warren Buffett recently said that digital currency is in bubble territory, a concern shared by Saudi billionaire Prince Alwaleed and Kenneth Rogoff, professor of economics and public policy at Harvard University. Now, the digital currency is trading at over $6,600 with a market cap worth over $110 billion, according to CoinMarketCap.

This week the cryptocurrency market reached a new record high.

Another individual making a case for bitcoin's future price is Wences Casares, CEO of Bitcoin wallet Xapo and a member of PayPal's board of directors.

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