Hedge funds in US are planning massive short bets against Bitcoin
Bitcoin is getting massive response from all over the world, once being considered as a small crypto currency is now worth more than $190 billion, making it the biggest crypto currency in the world with overall dominance of 56% in Crypto Market.
Emergence of Bitcoin is not only confined to some countries, investors from all over the world are pouring their money in Bitcoin, hedge funds in United States are known for their good returns, they try to make money by any mean. Hedge Funds play long (Bull) as well as short (Bear) bets on asset classes, either stocks, bonds or commodities and Bitcoin is the new sensation in the market for them.
The planned introduction of bitcoin futures contracts at CME Group Inc. CBOE Global Markets Inc. and Nasdaq Inc. will make it much easier to bet on a decline. Hedge funds, which have largely stayed on the sidelines, are waiting for the Chicago Mercantile Exchange’s futures market to open for a fresh opportunity to bet against the cryptocurrency.
Hedge Funds are building up Big shorts against the crypto currency
The overall sentiment in the global market is still positive and even at this rate people are buying all around the world, analysts are giving their predictions of $100000 per bitcoin within few years, but the sentiment in Hedge Funds market of US is that Bitcoin has gone a bit too far as far as price is concern, and that’s why they are preparing to short the asset as soon as it is available for them by future contracts or listing on NASDAQ.
The ability to short the currency is “an important part of the ecosystem,” said Novogratz, who recently began to raise $500 million to invest in cryptocurrencies. Novogratz, a bitcoin believer in the long term, has said short trades can be risky.
Is Toronto Next to Accept Bitcoin for Property Taxes?
Toronto is the biggest city of Canada with a population of more than 6 million. It’s also one of the leading global financial centers which makes it an attractive place for investors.
Bitcoin has emerged as the leading cryptocurrency in the world and attracted a lot of attention from financial investors. There are many crypto exchanges and investors in Toronto, which makes it an important destination for crypto startups and investors.
Recently, there has been a surge in usage of Bitcoin in the Real Estate world as lot of companies around the world are now accepting Bitcoin for buying and selling of properties. In April 2019, Innisfil, A town located in Ontario, at a distance of about 1 hour drive from Toronto, announced that they will accept Bitcoin for property taxes at the municipal level. In July this year, Richmond Hill announced that they are ready to accept Bitcoin as a payment method for property taxes.
Evan Kuhn, Co-Founder of a Toronto based crypto exchange Coinberry believes that integration of Bitcoin as a payment method for property taxes in Toronto can reduce cost, not only for tax payers, but for municipalities as well. Kuhn mentioned
“It doesn’t cost homeowners to use the service, and it costs the municipalities far less in processing fees”
“A credit card company charges a 3% fee,” he said. “Our fee is .5%, so that’s a lot more beneficial for the municipalities.”
He further explained the entire process to make it simple for the users and for the authorities. “When a resident makes a payment through our exchange, the company immediately converts the Bitcoin into Canadian Dollars and pays the relevant authority, so in basic concept this entire process works like a credit card system but with lower fee for both parties”
Morning Crypto Roundup
- Crypto market entered into a consolidation phase, with market cap at around $265 billion, market is currently trading in a range
- Bitcoin stays above $10,000
- Gray scale reported in a recent report that there are 7.1 million active Bitcoin users worldwide with more than 32 million Bitcoin wallets.
- After Innisfil and Richmond Hills, is Toronto next to explore an opportunity to pay property taxes through Bitcoin?
- According to a report from CryptoCompare.com, Untrusted crypto exchanges are dominating the crypto volume with more than 2/3 share