Looking at where cryptocurrency was just five years ago, it’d be difficult to see where it currently stands as even a remote possibility. Many did not believe that the currency would take off let alone be where it is at this point in time. With one coin in bitcoin being worth over $11,000, the world of cryptocurrency is becoming more and more accepted throughout the world.
Many financial advisors throughout the finance world have been asked questions about how to invest in digital currency and what it actually is, but many still do not know and are unable to answer that very question. Around a month ago, the Chicago Mercantile Exchange stated that they would be allowing investors to buy and sell bitcoin with the option to short it as well.
As the largest derivatives exchange, CME essentially changed the market with this announcement and helped to bring the price up by a staggering amount. Although the currency has done extremely well over the course of the past year, there are still many barriers in the way before it becomes mainstream and widely available. A recent survey taken by several bitcoin holders found that they “routinely worry about the technological security of their investments.” Many concerns from these investors are extremely warranted as there are still many unanswered questions within the industry.
Chris Burniske, co author of Cryptoassets: The Innovative investor’s Guide to Bitcoin and Beyond stated that “we’re starting to see bitcoin as a disaster hedge to the traditional market. Even though there’s a bull market now, it doesn’t mean that’ll be the case in 2018.” The hopes are high from many investors that bitcoin and the likes of cryptocurrency will continue their meteoric rise into becoming part of the world economy