Published
5 years ago on
October 31, 2018
“Derivatives are contracts between two parties to fix the price of an underlying asset (cryptocurrency, in this case) over a period of time or for a future transaction. The user of these contracts is bound to purchase the underlying asset at a fixed price and on a specific date, and the seller commits to sell. Bitcoin derivatives would let investors manage risk, and make it safer to hold and trade the cryptocurrency.”Essentially, this will make Bitcoin more accessible to institutional businesses and investors as the risk factor is removed to a certain extent. Back in May, a Goldman Sachs executive, Rana Yared was quoted saying:
“Bitcoin resonates with us when a client says, ‘I want to hold bitcoin or bitcoin futures because I think it is an alternate store of value. Goldman will begin using its own money to trade bitcoin futures contracts on behalf of clients.”This led to several people thinking that investment bank already had confirmed the plan to start Bitcoin derivatives. What are your thoughts? Let us know what you think down below in the comments! Investment Disclaimer
