Monday, October 23, 2017

Cryptocurrencies have now been financialized as High Frequency Trading computers (HFT) take over sector

Over the weekend the Financial Times reported that a number of High Frequency Trading (HFT) firms have now entered into the Bitcoin and cryptocurrency sector, which when coupled with Coindesk's allowance of options trading means that cryptocurrencies have now been fully financialized.

According to an article in the Financial Times, several high-frequency trading firms have started trading operations in cryptocurrencies. DRW, a Chicago-based proprietary trading firm, is the largest such firm that buys and sells bitcoin through Cumberland Mining, a subsidiary. Other trading firms that have invested in cryptocurrencies include Jump Trading, DV Trading, and Hehmeyer Trading. Cumberland bought 20,000 bitcoinsat the U.S. government’s bitcoin Silkroad sale in 2015. With their stash of cryptocurrencies, proprietary trading firms act as counterparties for hedge funds and family offices for cryptocurrency trades. - Investopedia
With 99% of Bitcoins being owned by just 1% of Bitcoin wallet owners, if you think volatility in the cryptocurrency space is incredible now, just wait until the algo's kick into high gear with thousands, millions, or even billions of trades occurring per day, especially since the crypto's carry the functionality of fractionalization.

1 comments:

Hey Ken - 2017 is the Quickening of new Paradigms: End of the Petro-Dollar, Gold Backed Yuan Oil Contracts, Russian Dominance of Energy, Crptocurrencies, Blockchain, Trump Populism, Fall of Globalism...the Clintons...and soon Soros. The question is will America cut our losses, re-calibrate, shed the hegomonic dogma, and be partners w/China, Russia, Europe or will America go down like Slim Pickens riding an A-Bomb in Dr. Strangelove?

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