11 Jun The big bitcoin investing decision: Coin or futures contract?
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Since late last year, bitcoin futures have been traded on two long-established futures markets, the Chicago Board Options Exchange (CBOE) and the CME Group exchange. These heavily regulated exchanges solve many of the problems found on the newer bitcoin exchanges, according to Singh.
“Because the future can be traded on regulated markets, it will attract investors, making the market liquid, stabilizing prices, and [it will] not suffer from low transaction speeds of bitcoin [exchanges],” he said, adding, “If prices stabilize, we may start seeing more companies accepting bitcoin as a mode of payment. This may further bring liquidity to the market.”
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