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New Cboe Report Indicates More Bearish Bitcoin Price Pressure Is Coming

Ever since Bitcoin futures were made accessible to institutional investors, there has been little interest in this trading vehicle, it seems. The most recent report by Cboe shows that most speculators are opening short positions on the Bitcoin price. This will undoubtedly lead to a lot more price volatility, which is the last thing Bitcoin needs right now.

The Bitcoin Price may go Even Lower

If there is one thing that can be said about the Bitcoin price in 2018, it is that the momentum is turning against this cryptocurrency. With prices falling by over 40% in the first quarter of 2018, things are looking anything but promising. It seems there is no improvement in sight either, although the market will have to turn around at some point.

Based on the most recent Cboe report, it seems Q2 of 2018 will not be any different in terms of bearish pressure. More specifically, the report indicates that most institutional investors are opening short positions on Bitcoin, which is not entirely surprising. We are in a bear market, after all, and with no real positive momentum in sight, there is no reason to think the Bitcoin price will improve moving forward.

At the same time, one has to take reports like these with a grain of salt. There appears to be an overall increase in interest in Bitcoin futures issued by Cboe, which can only be considered a positive development. Moreover, simply because traders favor short positions over long positions doesn’t necessarily mean the Bitcoin price will continue to decline in the future.

Even so, it goes to show that confidence in Bitcoin simply isn’t there as of right now. With all of the negative pressure we have seen in the first three months of 2018, some people are clearly losing hope. Then again, we have seen a bearish Bitcoin price cycle virtually every other year. In all previous cases, the cycle has come to an end eventually.

Whether or not that means the bottom is in sight for Bitcoin is a different matter altogether. A lot of people had expected the $7,000 level to hold, but the past few weeks showed that is no stable support level by any means. In fact, there is no clear support level for Bitcoin as of right now, although it seems we won’t go below $6,000 anytime soon.

Only time will tell how things will play out for the Bitcoin price. As of right now, there is no indication we will see a bull market in the near future, although there may be days when things start to look up. Unfortunately, most of these temporary uptrends are followed by massive corrections in short order. The Cboe report paints a worrisome picture, yet it only tells one small part of the story.

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Is Bitcoin Really Money? A Look Into What Qualifies As Money

Recently, a conversation between friends about cryptocurrency, its viability, and its reality in today’s world was held. One side was in favor of crypto and the future it holds, while the other side believed “Bitcoin” (because all cryptocurrency is Bitcoin to those who know little or nothing about cryptocurrency) is a scam, fake, and not worth thinking about let alone investing in. After having this conversation it seemed logical to try and answer a question at the root of all doubt and fear found in the heart of non-believers: Is Bitcoin (really) money? So, let’s look at the three things defining whether an asset is or isn’t “money,” and discover for ourselves what “Bitcoin” really is. Any true “money” has to be a medium of exchange. A medium of exchange means it is an asset which is agreed to have value in the eye of the holder and those they wish to exchange it with. Just as coins have a value assigned to them that everyone within a society using them agrees on making them a medium of exchange. Any true “money” has to be a unit of account. A unit of account means by virtue of the amount of asset(s) needed to make an exchange one can tell the quality, or quantity of the item(s) the asset(s) is being exchanged for and make this judgment based on the rate of exchange. Any true “money” has to be a store of value. A store of value means that if you have X amount of assets at point A, then you should be able to go back later and retrieve these assets at point B and they will still have value. It doesn’t spoil, rot, or become irrelevant with the passage of (normal amounts) time. First, Bitcoin can be used to purchase many things today. People can use Bitcoin in purchasing situations which are largely, at this point, online transactions. People can purchase flights, hotels, Amazon goods, etc. using Bitcoin and soon there will be a lot more. Second, Bitcoin is a unit of account because different amounts of Bitcoin will get you differing quantities, or qualities, of goods and services depending on how much Bitcoin you’re willing to give up in exchange for whatever it is you want to purchase. This is no different from spending fiat currency. Allowing you to gauge the quality and/or quantity depending on the amount of Bitcoin that is being asked for by the provider is an important aspect of “money,” so this, by definition, makes Bitcoin a unit of account. Lastly, Bitcoin is a store of value because if you want to use Bitcoin to pay for college and you buy some up now at the current price you will expect that it will hold its value and in the future you will be able to use it to pay for college with it having about the same or increased value attached to it at the time of exchange. So, is Bitcoin real “money?” Well, all three of the qualifiers have been met and proof makes positive in my book. So, there you have it, is Bitcoin money? Yes, it certainly is. The post Is Bitcoin Really Money? A Look Into What Qualifies As Money appeared first on NullTX.

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