, Columnist
Bitcoin Enters Awkward Adolescence
Derivatives provided greater visibility into an opaque markets, but there is no rush to embrace them.
A work in progress.
Photographer: Scott Olson/Getty ImagesLast fall, as cryptocurrencies seemed on the brink of a linkage with the traditional financial system,1519765808156 there were predictions of a price explosion along with institutional, regulatory and mainstream acceptance of the currencies. Others predicted disaster or a collapse to zero value. In the end, despite some dramatic price moves, not much happened.
Still, liquid crypto derivative trading gives us a lot more insight into what might happen in the remainder of 2018. Derivatives give us greater visibility into Bitcoin price moves. Instead of relying on an opaque, fragmented market for price data, we have clean institutional-quality data on both prices and implied volatilities.