Big inflation in the price of bitcoin has sparked controversy about being a revolution in financial technology or another technical bubble (Reuters)
The digital currency is likely to become a new asset class in itself, such as gold and equities, that can be traded and regulated by major investors, so that it is no longer just an encrypted currency, according to the honorary chairman of the CME Group .
The group - one of the largest derivatives markets in the world - announced last week that it would launch futures for the developers, which represents a major step in the digital currency path towards public acceptance.
Melamed said he expected major investors to participate in the coming decades for bitcoin , which the Chicago bourse plans to start by the end of the year
"This is a very important step for the history of bitcoin .
We will organize the bitcoin . .he said in an interview with Reuters. ... we will not make it unruly or more spectacular, but we will train it to become a regular trading tool with rules."
Futures will allow investors to sell off-the-counter (a sale of a security before owning it for later purchase at a lower value, used if the investor expects a price to fall in the near future), making the bets both possible, a trend that is expected to attract institutional investors, not just speculators .
Six-fold gains in the price of the so-called spin-off have so far sparked controversy in financial circles over whether the digital currency represents a revolution in financial technology or just another technical bubble.
JPMorgan Chase & Co. chief executive Jimmy Demon said in September that the "fraud" was a "fraud" and would explode as regulators in many countries tightened their grip on trading.
Melamed, 85, despite skepticism about bitcoin , saw similarities with the futures trade of the International Monetary Exchange, which he launched as president of the Chicago Stock Exchange in 1972.
He said that bitcoin could transcend being a coded currency to represent a new class of assets based on the "cluster chain" technique (a non-corrupt digital book of economic transactions that could be programmed not only to record financial transactions, but almost to record everything of value).
Critics say the "series of blocks" will allow the transfer of assets without a central system such as banks, and reduce the costs of transfer of funds significantly.
Source: Reuters
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