Bitcoin, the revolutionary cryptocurrency, surpassed $12,000 for the first time as speculation of widespread use of futures grew strong. Such use would enable digital currencies to be seen as an asset class that is legitimate.
On 5 December, bitcoin managed to climb to $11,850.
As bitcoin, the largest cryptocurrency by market value, continues to scale up the charts, mainstream investors have taken a keen interest. At the start of the year, bitcoin was valued at $1,000 and has seen such advancements on account of optimisation of the blockchain, the distributed ledger technology, that is at the core of Bitcoin.
Bitcoin futures will start trading on the Cboe Global Markets Inc. from 10 December 2017. Contracts from the CME Group Inc. will debut on 18 December 2017. Unofficial reports say that NASDAQ might feature the digital currency in 2018.
Currently, LedgerX, a startup, already offers options on bitcoin futures, while Cantor Fitzgerald LP’s Cantor Exchange is designing a bitcoin derivative.
As the cryptocurrency gains momentum, the RBI has been apprehensive and has reiterated its concerns about trading with bitcoins. The apex bank of India reinforced its fear that the swelling bubble could burst rapidly in all its glory.
As bitcoin trades 24 hours a day, every day of the week, the Reserve Bank of India issued statements that those trading in digital currencies have to own the risk completely, since there is no regulation, licence or authorization for any company to deal in such currencies.