Digital currency Bitcoin hits new high before losing S$200 in value in one day

[BlueKelah]

yup well said...

Blockchain just another "software platform" for electronic transactions. Banks already have their own platforms for transactions. Whether or not they want to use Blockchain will be a cost and efficiency equation. It is just another platform.

I am actually quite surprised they allowed futures trading in Bitcoin. But then again, the Americans are still allowing a resurgence in the synthetic CDO market that was responsible for the last GFC so go figure....

Wall Street goes to where there is money to be made - That is the default behavior, so where is the surprise? What is the best way to profit from insiders who are looking to cash out, and outsiders who are eager to go in? Ans: Become the middle man where you win (whether it is heads or tails)

The investment banks also first started out as the middle-men for synthetic CDO markets, but eventually the temptation to hold the actual product became too much with accelerating profits from these packaged products booming with the housing boom. How this will evolve is anyone's guess.

true it shouldn't be a surprise that Bitcoin was allowed on the futures exchanges. Perhaps there is a loophole in regulation there, or there is just no regulation regarding digital products/commodities. I was surprised as Yellen did say that Bitcoin was highly speculative asset and didn't constitute legal tender.  

Though the futures trading has started, the FED is still keeping an eye on it, according to them at current market cap Bitcoin is no threat to the larger financial system even if it collapsed to zero. I think they will probably intervene if the value goes beyond 1 trillion. But looks like it might become unlikely as Bitcoin has lost like a third of its value this week. in most markets this would be considered a crash already.

My guess is that with US raising interest rates and tightening and other worldwide central banks warning against it, Bitcoin fever likely to go out in the next half year. Will be interesting to see if it continue to sink below 50%. All those futures traders must be short selling like crazy now. Probably someone somewhere got the hackers to shut down YouBit and cause this crash after establishing a big short position.