Al Brooks @AlBrooksPA
Whenever there is something new to me and I want to understand it, and an expert in that new area cannot explain the basic concept clearly in one sentence, I immediately question the survivability of concept. A lightbulb is a glass ball that gives off light. A computer is a machine that does the fast math and lets me write papers that are easy to correct. A cell phone is a small box that lets me talk to people far away. Bitcoin is a cryptocurrency that uses block chains. What?!! That is the fundamental problem with Bitcoin.
It is too hard to explain, and therefore most people will avoid it unless the government regulates it and gives people guarantees. Even a lot of traders will not trade it because they want the added security that comes from regulation. exchange-traded funds (ETFs) ETFs and futures contracts trade on exchanges and are therefore regulated. They, therefore, have the potential to attract more traders. GBTC is the ETF for Bitcoin, but no one is trading it.
Will traders trade Bitcoin futures? I might, but I want to wait until I see lots of volumes all day long. If it will be a currency, the way its advocates claim, let’s see if it gets the volume of currency futures. If it does, traders will trade it. However, I am not eager to trade it. I will consider trading it after I see the consistent volume. Even then, I might trade the ETF versions instead, but only if they get volume.
Al Brooks, M.D., is the author of the Brooks Trading Course and several books on Price action.