Huobi’s futures trading market, Huobi DM, is already among the leaders of the cryptocurrency derivative markets, and it’s about to take up even more market share now that it supports instant Bitcoin (BTC) contract settlements, and lists BSV contracts as well.
Huobi DM is already a force to be reckoned with in the cryptocurrency market. Consider how it stacks up to the Chicago Mercantile Exchange (CME) one of the largest traditional derivative markets in the world. CME generates over $3 billion in revenues annually.
Is crypto a hot enough market for Huobi DM to outgrow its legacy competitors?
Speeding Up the Rat Race
Although cryptocurrencies are popular these days, research shows only around 25-100 million people actually use and own crypto. This is mostly in line with statistics for traditional stocks, in which only 10 percent of the all stockholders own 84 percent of all stocks. Cryptocurrency in particular is slower to mass adoption because of transaction speed.
Processing and verifying a Bitcoin transaction can take an hour or longer to reach the minimum confirmations. In the volatile world of crypto pricing, that hour can make a huge difference, and derivatives trading increases the risk. But Huobi’s move for instant transaction settlements has crypto traders salivating.
“Huobi DM’s phenomenal growth proves that not only is it a great product but that the time for products like ours has come,” said Livio Weng, CEO of Huobi Global. “The digital asset space is becoming increasingly mature and sophisticated and it’s possible to do things now that were only a fantasy a few short years ago.”
And there’s no better time – BTC, and the crypto market in general, had a bull run in the first half of 2019 after a bearish 2018 had critics jumping ship in droves. But the crypto faithful who remained saw profits as the blockchain community worked toward interoperability, even as philosophical differences over the purpose of crypto divides us.
Will the Real Satoshi Please Stand Up?
The name Satoshi Nakamoto is legend at this point and will continue coming up in conversations moving forward. Not only have copycats popped up everywhere in the lexicon, but the mysterious Bitcoin creator holds 980,000 BTC, which is about a $10 billion fortune.
Perhaps even more shocking, that fortune wouldn’t even put Nakamoto in the Forbes 100, which has a $13.2 billion entry bar.
But fortune is only one part of Nakamoto’s mystery, and his initial vision for Bitcoin is a contentious one that caused splits in both the Bitcoin and Ethereum (ETC) blockchains. The most recent fork in November 2018 was Bitcoin SV (BSV), led by Craig Wright and Calvin Ayre, which increased block size limits from 32MB to 128MB. The project has over $300 million in daily trading with widespread market acceptance. Its listing on Huobi DM is sure to be a win for both organizations.
Bitcoin, Bitcoin Cash (BCH), and Bitcoin SV support means competing camps can now actually put their money where their mouth is. If you truly believe Bitcoin will surpass $20k by the end of 2019 or that BSV will surpass BCH in market value, you can place those orders on Huobi DM. It’s a strong statement in a world where the most powerful political leaders are bickering on social media.
And it’s certainly more appetizing than what John McAfee is putting in his mouth over the great crypto debate.