Posted By: Ilan Levy-Mayer Vice President, Cannon Trading Futures Blog
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Bitcoin: Will Stunning Rally Sustain or Sour in 2018?
- 4 Dec 2017
- By Erik Norland
- Topics: FX, Equity Index, Metals
Our previous article on bitcoin focused on the crypto asset as a currency and delved into the inherent tension in its role as a medium of exchange and a store of value. This paper examines why bitcoin is so volatile; its supply and demand drivers, and how the cryptocurrency compares to commodities.
What is most striking about the economics of bitcoin is the certainty of its supply and the vagaries of demand. The rate at which bitcoin is mined has been highly predictable and unlike almost any other asset – currencies or commodities – its ultimate supply is a known quantity, fixed well in advance. There will never be more than 21 million bitcoins. This feature makes supply almost perfectly inelastic. No matter how high prices go, miners will not produce more than 21 million coins. Moreover, price increases won’t necessarily incentivize a more rapid mining of bitcoin. Even if they did, it would only influence miners to create more bitcoin today at the expense of creating less in the future since the total supply will reach a hard, asymptotic limit of 21 million coins…..Read the Rest
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In Order to Trade bitcoin futures and other commodity futures, please complete the following online application and fund the account with the minimums listed above
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Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.
Futures Trading Levels
|Contract December 2017||SP500||Nasdaq100||Dow Jones||Mini Russell||BitCoin Index|
|Contract||Feb. Gold||Mar. Silver||Jan. Crude Oil||Mar. Bonds||Dec. Euro|
|Resistance 3||1283.5||16.30||57.95||155 24/32||1.1853|
|Resistance 2||1275.1||16.15||57.36||155 3/32||1.1837|
|Resistance 1||1262.5||15.95||56.99||154 5/32||1.1809|
|Support 1||1241.5||15.61||56.03||152 18/32||1.1765|
|Support 2||1233.1||15.46||55.44||151 29/32||1.1749|
|Support 3||1220.5||15.26||55.07||150 31/32||1.1721|
|Contract||Mar. Corn||Mar. Wheat||January Beans||Mar. SoyMeal||Jan. Nat Gas|
Economic Reports, source:
This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading.