LedgerX attaining regulatory approval for selling derivatives contracts could set off a “virtuous cycle” for mass crypto adoption, Bloomberg says.
In an article about LedgerX Wednesday, the publication, which has taken a hands-on approach to both crypto’s gains and losses, said the company’s success was a key moment for the industry.
How Bitcoin options could create a virtuous cycle for further adoption: https://t.co/CPW3oEgy3g pic.twitter.com/TTgwcyrpZK
— Tuur Demeester (@TuurDemeester) August 3, 2017
“If LedgerX and future cryptocurrency derivatives clearinghouses succeed, cryptocurrencies become more successful, which helps the clearing houses succeed,” it forecast.
The cycle in question revolves around tools such as LedgerX attracting more investors who hold more cryptocurrency for longer due to increased safety and associated lack of volatility.
This, in turn, attracts more users looking for proof the classic stereotype of highly volatile, unstable Bitcoin is now a thing of the past.
“People who never used cryptocurrencies are pulled in by the reduced volatility, attractive returns and a better suite of retail products,” Bloomberg continues.
“More use means more legal and regulatory clarity. All of this means more liquidity, higher prices and lower volatility, feeding the cycle.”
LedgerX’s story, and that of the market it may yet create are nonetheless still very much at square one.
The platform is now the “first federally regulated Bitcoin options exchange and clearinghouse to list fully collateralized, physically settled Bitcoin options in the US,” and debuts at a time when even drama such as a Bitcoin fork has done little to shake the biggest cryptocurrency’s stable price performance.