Bitcoin Futures Launched: A Milestone in Finance
Beijing time 7:00 a.m. on Monday, Chicago Board Options Exchange’s (CBOE) bitcoin futures contracts was finally launched, which means it officially ushers in the landmark moment for bitcoin’s entering into Wall Street.
For the trading situation, the opening price of bitcoin futures was USD 15,000, then it rose all the way up once to over USD 18,000, it soared so quickly that circuit breakers were triggered twice during the period from its opening on the morning of Dec.11th. The past weekend saw it jump to below USD 13,000, while after the opening of futures trading, it soon rose by 8% in five minutes, at present it has risen up to over USD 16,000. This indicates that investors all over the world are still active in bitcoin trading, and rather optimistic about bitcoin’s prospect.
Bitcoin futures, with controversy, doubts and even suppress from some countries, finally got launched officially, this really means a lot in its way.
First of all, bitcoin, as a product of financial innovation, regardless of the controversy from financial regulatory authorities, as long as it has the real function of acting as world currency media, namely digital function of Internet finance, it will finally be recognized by the majority of investors. The regulatory authorities of different countries should face it and guide it in the right way with timely introduction of corresponding laws and regulations, and lead it to the interest of investors in a healthy way. It’s useless and impossible to suppress and prohibit it by administrative means. To be against the trend of financial innovation is nothing but stupid.
Secondly, anyone who first realizes the importance of Internet finance, embraces it with an attitude of innovation, inclusion and openness and provides suitable places for its development for the good of national economic and financial development, can benefit from it. If bitcoin and many other Internet financial digital currency is not treated with a comprehensive and mature view, only its downsides on traditional finance are concerned with administrative means carried out to ban its circulation and investment functions, it’s actually an unwise move against history and do no good to the development of finance and economy. In this regard, the US government and its regulatory authorities with its open and inclusive attitude towards digital currency provide an official stage for bitcoin futures, making bitcoin a competitive arena for investors to freely participate in, which is indeed worth to learn from for many other governments of the world.
For another, as for the price rising trend of bitcoin, governments and supervision authorities all over the world should strengthen connection and cooperation, adopt consistent and comparatively light regulatory standards towards it, and create favorable conditions for bitcoin’s playing a greater role in world financial transactions. This year, bitcoin’s price has been keeping soaring, with its market value exceeding that of several famous listed companies such as Netflix, Morgan Stanley, Goldman Sachs, Disney and GE. CoinMarketCap data shows that the latest total market value of bitcoin has reached USD 262 billion. Considering the skyrocketing trend of bitcoin, it may suffer suspicion of artificial manipulate and price bubble, while it is an indisputable fact that bitcoin is now highly valued and pursued by investors all over the world. Therefore, in order to make bitcoin play a more important role in financial activities in the whole world, and provide a more ideal investment channel for investors, it is necessary to strengthen ties and cooperation from all walks of life all over the world, as well as create comparatively loose and inclusive regulatory policies regarding bitcoin. By formulating relevant laws and regulations, providing comfortable environment for the development of bitcoin and making it a formal channel of financial investment so that investors can effectively participate in.
The last thing is about the heated bitcoin futures. The US government should not rush to launch bitcoin futures, but make it with fully transparent opinions collected from the public so that it can become a hit and success. At present we have two problems that still need addressing to: one is to strengthen bitcoin futures trading base, preventing the occurrence of bitcoin trading’s great volatility and circuit-breaker halts, regarding this, CME and CBOE shall set up scientific circuit breaker mechanism to lay a good foundation for bitcoin’s faster and better development in the real investment. The other thing is to match corresponding bitcoin futures for formal launch and trading, so that bitcoin futures trading can be put into practice, not only limited to paper contracts, and investors can enter the market officially where investors could gain satisfying financial investment profit.