Bakkt chief operations officer, Adam White says that the futures market can assist in predicting the price of Bitcoin, reports Cointelegraph.
In an interview with CNN, White revealed that the freshly introduced Bakkt futures contracts will assist in valuing Bitcoin. According to White, the daily and monthly futures contracts will help in price discovery.
The new Bakkt futures started trading last weekend where 71 contracts were traded during its debut day. White explained his point:
“We think this is an important part of the futures contract — to help businesses discover what the fair market value of Bitcoin is going to be through events like this.”
White stated that futures are also likely to predict alterations in the market due to block rewarding halving by next May.
The halving of block reward can be described as the drop that occurs after every four years in the reward given to miners after validation of a Bitcoin block transactions. At the moment, the reward stands at 12.5 Bitcoin and is expected to go down to 6.25 Bitcoin by May next year.
It is expected that following the halving, Bitcoin’s value will dramatically rise. According to Cointelegraph, after the halving in 2016, Bitcoin’s price rose dramatically leading the famous price tag of about $20,000.
What do you think of White’s predictions? Will Bitcoin futures contract help to forecast the price of Bitcoin? Keep the conversation live in our social media platform.
Author: Joseph Kibe
Adam Black, the CEO of Blockstream, has recently affirmed that Bitcoin dominance is set to rever to around 90%, which would mark the end of the altcoins’ supremacy era. According to him, the historical heights will be achieved once more at the expense of the altcoins.
He affirmed this during a recent debate with Dovey Wan, the co-founder of Primitive Fund. Initially, Wan asked about how Bitcoin was quickly decoupling from altcoins and rising in price alone. Adam Black answered that this was a “reversion to mean” and that the process would continue. At the moment, the dominance of BTC is around 70%, but he believes it will grow.
Last year, Bitcoin had less than 40% of the whole market cap, but the situation is changing quickly. Black affirmed that the whole reversion of the trend will last for around two years and a half and that the dominance will be huge when the process stops. Before 2015, BTC dominated 90% of the market and he believes that this will happen again.
This obviously gives some power to the narrative that Bitcoin is here to take the place of the altcoins completely. Vocal critics of altcoins have been very prominent lately by affirming that they are mostly doomed, with maybe only a handful of them surviving the future.
The Bitcoin maximalist Max Keiser, for instance, affirmed that the altcoins will never recover from their losses and that Bitcoin will continue to be the king in an even more undisputed fashion now. Is he right? Hard to say, but the trend if clear, Bitcoin is growing and the altcoin market is struggling to follow.
Author: Osahon Okodugha