BTC Volatility Won't Hurt CME and CBOE, Moody's Says

Popular rating agency released new bitcoin-related report
15 February 2018   900

Moody's rating agency believes that the launch of futures for Bitcoin by the CME and CBOE is unlikely to affect their credit rating.

Moody's report was approximately two months after the launch of derivatives. In the 11-page document, the agency states that the measures taken by the two trading floors to minimize risks, combined with the early stage of market development, do not allow to consider these risks serious.

To date, the volume of trading in bitcoin futures is small, but CME and Cboe expect to play on the interest of the investment community to the underlying asset. The price of bitcoin is highly volatile, but we do not think that the risks of this market will affect the credit rating of CME and Cboe, given the small volume and strong risk management system used by central counterparties.

Moody's Report

The report provides an overview of the formation of the futures market, as well as the problems that, according to Moody's, restrain its development, including the volatility of the bitcoin price.

Moody's suggests that the requirements of CME and Cboe can be changed along with the growth of bitcoin volatility, while brokers, in particular TD Ameritrade and E * Trade, will have nothing else to do but follow the vector set by the trading floors.

Most Crypto to Fail, Digital Currency Group CEO Says

Barry SIlbert believes Bitcoin is a king and when the mood among major investors changes, BTC is waiting for serious and aggressive growth
14 February 2019   241

Barry Silbert, head of Digital Currency Group, continues to believe in Bitcoin’s great future, but questions the long-term prospects of most existing cryptocurrencies and digital tokens, saying in an interview with CNBC that they will all be worthless in the future.

I'm not a believer in the vast majority of digital tokens and believe most will go to zero. Almost every ICO was just an attempt to raise money but there was no use for the underlying token. The vast majority of what's out there will be eliminated.

Barry Silbert

Head, Digital Currency Group

At the same time, Barry Silbert is convinced that Bitcoin, despite the current “terrible schedule”, enjoys great interest from institutional investors and “won the fight for the title of digital gold”.

According to him, the new generation of investors no longer sees gold as a “safe haven”, and the money that is now in gold will be converted into cryptocurrency.

I'm convinced that whatever money is in gold is not going to stay in gold. That gets handed down to millennials. I'm highly confident a lot of that will go into bitcoin.

Barry Silbert

Head, Digital Currency Group

Barry Silbert believes that the buy and hold strategy is fully justified, although it is still difficult to say exactly when large institutional money will go into Bitcoin. Nevertheless, he noted, at the beginning of 2019, all the necessary infrastructure was already in place, listed the upcoming launch of the Fidelity custodial solution and investment opportunities such as the Bitcoin futures platform Bakkt.

When the mood among major investors changes, Bitcoin is waiting for serious and aggressive growth, Silbert added.