Battling Bitcoin

By Tegan Valentine

The future of bitcoin – the world’s first decentralized digital currency – has dominated investment conversations. Over the past two and a half months alone the digital currency’s value has more than quadrupled, reaching a high of over $17,000 USD per coin on Friday. While this rise has captured the attention (and money) of many, not all commentary on the new currency has been positive. Critics of bitcoin caution investors, and point toward the fates of gold and dot-com companies (two asset classes that saw a meteoric growth in value, before ultimately experiencing a dramatic, and devastating, collapse). Despite these warnings, Canadian investment in cryptocurrencies continues to rise and will likely continue to do so, especially as access to the market expands. Cboe Global Markets Inc. and CME Group Inc. will both become operational in December 2017, and allow institutional investors to trade bitcoin futures for the first time. Similarily Evolve Funds Group Inc. looks to change the face of bitcoin investment by offering the first Canadian bitcoin exchange-traded fund. The future of bitcoin remains to be seen, however with demand swelling and increasing access to the commodity, it appears the digital currency will remain a mainstay in the Canadian market. The pressing question is how regulators, and which regulators, will respond.

For additional information, the following articles comment on the future of bitcoin in Canada.

In The Globe and Mail, Prof. George Athanassakos warns investors about the dangers in investing in ‘trendy’ commodities like bitcoin.

Jemima Kelly and Gerturde Chavez-Dreyfuss recap recent bitcoin activity in The Globe and Mail.

The Financial Post’s Claire Brownell comments on changes to bitcoin access, and discusses bitcoin future trading, and ETFs.

 

For an international perspective, the following articles comment on the future of bitcoin across the globe.  

Investopedia released an article commenting on the volatility of bitcoin’s perspective, before pointing to ‘whales’ as the source of price surges.

Olga Kharif’s article on Bloomberg Businessweek further commented on the role of ‘whales’ in the market – alerting readers to the fact that 1,000 people control 40% of the market.

For new investors, The Economic Times released a ’14 things about Bitcoin’ article that sets out a basic outline of the cryptocurrency, and provides readers with insight into the largest challenges facing the currency.