submitted by Bitex1 to u/Bitex1 [link] [comments]
The use of cryptocurrency is spreading fast among business communities around the world. One niche with great potential for cryptocurrency use is the market of traditional tradable assets of foreign currencies, shares, bonds, interest rates and minerals.
As soon as the right regulations on blockchain are put in place, traders will be able to use cryptocurrencies such as bitcoin to trade assets. The doors will be wide open for institutional investors, international manufacturers and merchants to start using cryptocurrencies for transactions. Paying for delivered products with cryptocurrencies will greatly reduce transaction expenses since the system is fast, secure and free of additional fees. These qualities will enable buyers and sellers in these markets to guard against risk and save a little cash.
You can imagine the asset demand the use of cryptocurrency in the stock markets would create. The volume of speculation and hedging operations of traders will grow significantly. Combined with high-frequency robots and trading algorithms that help perform transactions faster and more accurately, the market volumes and the income of trading platforms is bound to skyrocket.
As per the Bank for International Settlements (BIS) over the counter derivatives were traded for a whopping $632.5 trillion in 2012. In the same year, traditional exchange markets garnered $52.5 trillion. When the two are compared, the former made 92% of the global derivative market while the latter only made 8%.
According to WTO,
· Global commodity trade made: $18.255 trillion in 2011, $18.323 trillion in 2012,
· Service trade made: $4.2433 trillion in 2011 and $4.4232 trillion in 2012
These values are still way behind the derivative market trade volumes.
What are the challenges?
Delving into the asset markets with cryptocurrencies as a means of trade comes with a few challenges. For one, it is difficult for private persons with small investments to access these markets. And even if you were a big corporation, there is currently no opportunity to trade with exchange asset derivative instruments that are expressed in cryptocurrencies (Bitcoin, Ethereum, Litecoin.)
How Traditional Stock exchanges work
Trading is carried out with the use of fiat currencies and is performed through brokers. The brokers work for huge corporations hence the high expenses and large volumes of transactions. The volume of one trade at exchange markets with the real delivery of currency on the second working day could make up to about $5 million.
On the other hand, the cost of one conversion transaction makes from $60 to $300. On top of these costs, a trader could spend up to $6000 a month for interbank information and trading terminal. This is obviously not conducive for small-scale traders.
In order to curb the high costs of trade, two American stock exchanges, CBOE and CME introduced trade with futures for BTC at the end of 2017. The only problem is that they impose high requirements on the lot size. Another challenge is that futures at these stock exchanges are calculated and not delivered hence trade participants cannot actually buy BTC.
Curbstone brokers or otherwise known as ‘bucket shops’ are forex brokers who offer clients small transactions without registering them with the interbank market. The brokers act as an opposite side in a transaction which means that the client's profit turns out to be the broker’s loss, and the client's loss - into broker's proﬁt. This conflict of interest has resulted in brokers manipulating charts to make transactions of their clients unprofitable. Bucket shops do not publish reports on transactions, which makes activities of such brokers non-transparent.
Of late, many of them have begun offering trade with cryptocurrencies. It makes trading flexible but not ethical and trustworthy as it is with the traditional stock exchanges.
As a matter of fact, this lack of trust in curbstone brokership has led to their ban in some countries where they are considered fraudulent.
So what is the solution?
Cryptocurrencies have enabled ordinary people and investors to save and grow their money discreetly away from unfair control or seizure by state regulatory bodies. The use of cryptocurrency in the blockchain network is a powerful expression of freedom that should be spread across all trading platforms.
In this regard, we believe in the development of future exchange asset derivative instruments that make use of the available cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and other high-liquid cryptocurrencies.
This will make bull or bear traditional assets widely accessible to professionals and beginning traders. More importantly, there will be lower transaction fees about 0.05% when compared to spot exchanges (Bitﬁnex, Binance, Kraken, and Poloniex) that charge in the range of 0.1 to 2%.
BlTEX.ONE is one such innovative trading platform that allows for international trading with assets expressed in cryptocurrencies with a transparent transaction system for the customers. It also has anti-fraud prevention measures to guard against chart manipulations.
The platform allows traders to increase their Bitcoins by speculating on the changes in the price of accessible traditional exchange assets such as the dollar, the euro, gold, oil, beans, cocoa or share indexes.
Our greatest mission is to bring the usage of blockchain and cryptocurrencies into the trading arena. We believe that the creation and functioning of the BITEX.ONE platform for trading with futures on traditional assets would achieve this.
The growing popularity of cryptocurrencies in many developing countries will soon provide them with a legitimate status through effective legislation. When this plane takes off, we want to be ready with an elaborate platform for institutional investors to use cryptocurrencies as investment instruments. Working with futures on traditional assets will create an opportunity for investors to make substantial proﬁt for their customers.
Beyond the confines of France though, lessons learned from the central bank digital currency experiments will be contributed to the international work being led by the Eurosystem, the monetary ... This article is written by one of our contributor Richard Kastelein. The Bank for International Settlements (BIS), an international financial institution owned by the world’s central banks, has published a working paper, called Embedded Supervision: How To Build Regulation Into Blockchain Finance, which supports the idea of constructing blockchain-based regulation into markets, by making the One of the most hardcore Bitcoin critics, Agustin Carstens, general manager at the Bank for International Settlements (BIS), recently expressed his views regarding the number of risks associated with central banks issuing their own digital currencies. Opposing the idea of central banks issuing their own virtual tokens better known as “central bank digital currency” (CBDC), he said that it ... Count My Crypto is a comprehensive altcoin and bitcoin calculator that enables users always to stay informed about the current prices of their crypto investments. The easy to use website can easily visualize all your crypto investments and track their latest rates. Also, for added convenience, In focus: a digital central bank currency. The Bank for International Settlements (BIS) and the Swiss National Bank (SNB) are investigating the possibilities of a blockchain-based digital central bank currency. Because the technology, which lies under Bitcoin and other crypto currencies, can serve likewise as basis for digital central bank ... The Bank of International Settlements, BIS, which serve as the central bank for central banks, recently released a report claiming cryptocurrencies cannot succeed because of their lack of trust. Shocking news… the central bank for central banks thinks crypto is a bad idea, and issued an unbiased report to illustrate the numerous challenges they face […] Augustin Carstens, the head of the Bank for International Settlements (BIS) recently actively supported the creation and issuance of digital versions of national fiat currencies. “Many central banks are working on it; we are working on it, supporting them. And it might be that it is sooner than we think that there is a market […] Many had expected the 2017 explosion of bitcoin and cryptocurrency prices to mean adoption and usage of digital tokens soared, but a new survey from the Bank of International Settlements (BIS) has ... The Bank for International Settlements (BIS), also known as the central bank of central banks, has released a report that claims that although cryptocurrencies are efficient in some areas, they are not meant to replace the monetary system entirely. The BIS did, however, hint at the possibility of digital currencies by the central banks themselves.
[index]          
A rising number of central banks are likely to issue their own digital currencies in the next few years, research by the Bank for International Settlements (BIS) showed on Thursday, as interest in ... Hidden Secrets Of Money - Mike Maloney S1 • E8 From Bitcoin To Hedera Hashgraph (Documentary) Hidden Secrets Of Money Episode 8 - Duration: 1:14:26. GoldSilver (w/ Mike Maloney) 1,004,329 views ... - Lawyer Jake Chervinsky gives his take on the SEC deadline Feb 27th approval or disapproval of Bitcoin ETF given the US Partial Government Shutdown - Bank of International Settlements Crypto ... #BINANCE #BITCOIN #ETHEREUM A Competition for all Binancians & Fans with Bitcoin and Ethereum Airdrop! To participate, and read the competition rules please visit the link bellow: 🔴Live Bitcoin Halving Countdown ... Bank of International Settlements - Duration: 7 minutes, 25 seconds. 1,823 views; 1 month ago; 8:09. Why Binance Paying $400 Million For CMC.? Important ... The past few years have seen a growth in crypto-assets. Bank for International Settlements Statement on crypto-assets https://www.bis.org/publ/bcbs_nl21.htm ... Professional Mentors, Exclusive Signals and Setups, Custom Indicators & Strategies, Educational Material, and much more. https://premium.crackingcryptocurren... Focus On Bitcoin, Crypto Settlement, Russia/China Crypto & Possible Bitcoin Correction The Modern Investor. Loading... Unsubscribe from The Modern Investor? Cancel Unsubscribe. Working ... This is my journey into Crypto Space and I have managed to live on my income from Bitcoin and Crypto full-time. Although many may be seeking wealth from this... Bank for International Settlements changes tune on #cryptocurrency Watch for yourself in their own words. (Mr. Agustín Carstens, General Manager of the BIS) ...