Are Crypto Derivatives a Godsend or Pandora’s Box?

Rising uncertainty in the global financial market sends increasing investors to safe-haven assets for defensive purposes. Crypto assets, other than precious metals and foreign currency products, have become a new alternative to protect against inflation and geopolitical risks.

Whether people expect things to go their way or not, Bitcoin, one of the most popular cryptocurrencies, has been playing a greater role to facilitate value exchange in the international financial market, despite its high volatility over the past 11 years. The market has developed a high demand for universally accessible spot markets to trade and derivatives markets to hedge risks.

Crypto exchange operators are, therefore, working on their plans of developing trading platforms to woo global investors. However, conservative parties mock crypto players by likening them to casinos due to futures, which are painted as the root of the past financial crises. Here it begs the question: is crypto derivatives trading a godsend or the Pandora’s box of the crypto industry? Read More...

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