The future of the Bitcoin is being seriously questioned. First, there was the Mt. Gox thefts where $400 million was stolen. The exchange has since filed for bankruptcy protection. Now, Flexcoin is reporting having $600,000 stolen, and Poloniex has reported stolen $50,000. This brings into the limelight a question that Bitcoin critics have been asking for a few years now: what is the Bitcoin going to do over the long term?
It’s a pretty serious question. A lot of traders have begun speculating in the Bitcoin, and so far there have been very few negative consequences. But the impenetrable encryption that backers have been boasting of is clearly not a reality, and the Bitcoin is in very real danger of disappearing altogether.
This doesn’t mean that it’s going to be instantaneous, though. Trading Bitcoin binary options can actually be pretty lucrative right now, in fact, especially if the bad news keeps coming in. All you need to do is focus on put options of the appropriate length and as the digital currency drops, you will see profits go up. However, if the demise of the Bitcoin does become an imminent threat, you will see big changes in how it is traded on binary options brokerage sites. Already, some major brokers have made a few changes, effectively limiting your money making opportunities off the currency. For example, most major currencies are traded around the clock on binary sites. This is not the case for Bitcoin. And while the easy answer says that the Bitcoin is not a “real” currency, it is pitted against other currencies as a Forex pair on these sites, pretty much implying that it really is a major currency. You won’t see the Bitcoin by itself on a site, but rather a Bitcoin/USD or a Bitcoin/EUR pair. For all intents and purposes, brokers are treating the Bitcoin as a currency. So why are they not giving it the same treatment as other currencies?
There is one other answer before you assume the worst, here, and this second argument holds a lot more sway. The Bitcoin is volatile. Volatile assets are limited by brokers because too much movement would mean too much of a loss for the broker. They would do this with any asset, major or not, if this were the situation. They already do it with all stocks and indices, actually. There is no trading U.S. stocks within 30 minutes of the New York Stock Exchange opening bell simply because of the fact that this is where the most movement takes place during the course of a day. Add this to the fact that movement is often predictable here, and you have a chance for traders to take away far too much money from binary brokers. As you can see, the brokers can and will limit your choices in order to protect their own profits.
It’s unfortunate for traders that this happens, but it’s necessary. It might dig into your ability to make money, but it’s definitely not going to take it away. You can still make money off of trading stock binaries, and you will still be able to make money off of the Bitcoin–for the time being. Just be smart, stick to the rules that your broker of choice gives you, and then max out your earning potential where you can. The Bitcoin is not dead yet, even if it appears that it’s on its way there. For now, you can still trade it safely with binary options, and this is a good thing for you, the trader. Your choices are currently limited, but you can use them still to make money if you are careful about it.