While the technical foundations for cryptocurrencies have been around in various forms since the 1980s, their front-line position with the public and financial investors has only been around for the last nine or ten years. The inception of Bitcoin in 2009 marked a fundamental change in the way cryptocurrencies are perceived by the public. And now, in 2018, they continue to become a reliable currency with exponential growth potential. Because of this, huge financial institutions are now attempting to collect a profit from this “new” form of currency.
Cryptocurrency News | New Trading Platform Coming Soon?
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Major players like the NYSE and Goldman Sachs plan to capitalize on the major opportunity cryptocurrencies present. Digital currencies like Bitcoin, Litecoin, and Ethereum continue to surge in popularity and value. This means regulating it may potentially produce substantial returns for these industry giants.
Recent developments in the industry have given insight into the future of cryptocurrency on a larger investment platform. It has been revealed that NYSE has been working on formatting an online trading platform. This will allow investors to trade and hold cryptocurrencies in a more organized manner than before. This update followed Goldman Sachs’ announcement they are working on creating a futures market for cryptocurrencies. This is now an open race toward establishing the first legitimate hold over cryptocurrencies.
NYSE Leading the Pack?
On May 3, 2018, Goldman Sachs announced they are planning to enter the Bitcoin market. Their move is to create a futures market where investors can purchase a contract that will mimic the value of Bitcoin. This, however, will not allow them to hold the actual currency. Goldman Sachs executive Rana Yared stated it was a long process before the company’s higher-ups gave it a go. That and most individuals on the board are still skeptical of the move. However, the unprecedented success of the cryptocurrency convinced them to engage this relatively new industry.
Despite this move by Goldman Sachs, the NYSE is still ahead of the competition, with its announced development of an online platform that will allow users buy, hold, and trade Bitcoin. This platform will, most importantly in regard to industry competition, remove the need for futures, derivatives, and contracts. It will function like a Bitcoin wallet, similar to Coinbase and other Bitcoin trading platform.
What This Means for Cryptocurrency
The NYSE opting to establish a Bitcoin exchange is a monumental decision for both investors and cryptocurrency. From a legal and public perspective, it shows these proven institutions are welcoming the change with open arms. Moreover, it now acknowledges the once unproven system to be another means to boost the health of the finance industry. Should this come to fruition, more people will likely start transacting using this digital asset.
Will This Actually Work?
With the ever-increasing demand on cryptocurrency, it shouldn’t come to anyone’s surprise if huge corporations want their piece of the pie. In fact, LedgerX founder and CEO Paul Chou stated the industry is seeing an unexpected interest from skeptics since Bitcoin was introduced. According to Chou, the cryptocurrency’s biggest doubters are now its biggest advocates, which leads to plenty of possibilities. He added that cryptocurrency’s bright future is happening now.
Do you think the cryptocurrency industry will withstand these challenges and is here to stay? Leave your thoughts in the comment section below.