Leo Melamed, the Chairman Emeritus of CME Group stated out on Tuesday that Bitcoin holds the potential to become an individual asset class in days to come much like that of stocks and gold.
It houses possibilities of becoming something more than just a meagre cryptocurrency by getting under the threshold of regulation and being traded openly by major investors. World’s largest derivatives exchange CME sent Bitcoin prices spiralling up the curve by its last week’s announcement of launching Bitcoin futures by the end of this current fiscal. This is surely going to bring legalization to this dynamic cryptocurrency form and push it a step closer towards mainstream acceptance.
Melamed is expectant that major investors shall swarm in to be a part of the soon to be started bitcoin futures trading. Melamed was recently quoted as saying in an interview, “that’s a very important step for bitcoin’s history… We will regulate, make bitcoin not wild, nor wilder. We’ll tame it into a regular type instrument of trade with rules.”
Investors can engage in activities such as making two-way bets, short-selling bitcoins with this futures exchange which will attract hardcore investors rather than petty speculators.
Financial professionals have been left divided over the ongoing debate regarding whether Bitcoin is just another tech bubble or it is actually a footprint of the revolution which is all set to impart a much needed makeover to financial technology spectrum. Bitcoin price <BTC=BTSP> have increased by six times in this year adding more fuel to the debatable fire. JPMorgan Chase & Co chief executive Jamie Dimon termed Bitcoin as a fraud in September and even called Bitcoin buyers “Stupid” which has every possibility of blowing the whole thing up. This caused regulators spread across the globe to impose further stringency onto the cryptocurrency functioning.
Melamed, 85, was initially skeptical about bitcoin but hard-hitting similarities between Bitcoin and International Monetary Market currency futures trading, launched by him as the chairman of the Chicago exchange back in 1972 have enhanced his confidence in the same. He pointed out that, “the world in the 1970s didn’t look at currency trading as a valid instrument of finance. I too went from not believing (in bitcoin) to wanting to know more.”
Based on the excellent Blockchain technology, asset transfer will register a significant downfall in cost since it shall not have to rely on a centralized system like bank which brings along its own overhead expenses. He concluded by saying, “my whole life is built abound new technology. I never said no to technology. People who say no to technology are soon dead. I’m still that same guy who believes in, at least examining change. That’s what bitcoin represents.”
Melamed fled the Nazi-occupied Poland and subsequently moved to Chicago with his family. His parents were amongst the handful number of Jews who had fled to Lithuania following Germanys invasion on their native town Bialystok in Poland. Diplomat Chiune Sugihara who helped thousands of refugees resettle irrespective of Tokyo’s stringent policies had also helped them attain visas to Japan. Melamed was elected as the chairman of the Chicago Mercantile Exchange back in 1969.
Also Read: After CME, Argentina To Launch Bitcoin Futures
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