Thanks to the introduction of cryptocurrencies, global investors look to be in the early stages of a generational shift. They’re moving away from traditional investments in favor of investments derived from blockchain technology. Investors from all walks of life, particularly the millennial generation, are exchanging traditional investments for cryptocurrencies. Why?
Let’s explore precisely why I believe crypto assets will experience a multi-year bull market–and how this type of investment opportunity could unfold over the course of the next decade.
Which Market Shows the Best Prospect for Long-Term Trading?
Before we dive into the details, let’s review a list of the most popular traditional assets that investors have added to their portfolios over the years. Please review the following table.
Traditional Asset Classes
10-Year Annual Rate of Return
|Investment||Asset Class||Volatility||Annual Return|
|Corporate Bonds||Fixed Income||Moderate||2.55%|
|Government Bonds||Fixed Income||Moderate||1.98%|
|Source: Barchart. Note: Results based on index ETFs|
In the world of investing, there are five major asset classes. The list includes equities, fixed income, commodities, cash, and alternative investments.
There are several categories in each asset class. The table displays the annual rate of return for the eight most popular investments. With the exception of the stock market, these investments have performed rather poorly during the past decade.
Based on the fact that traditional investments have generated disappointing results, investors are searching for a new asset class in an attempt to improve the results of their investment portfolios. Cryptocurrencies have entered the global investment landscape at precisely the right time.
The Demand for Cryptocurrency Investing
Officially, cryptocurrencies were introduced in 2009, with the formation of Bitcoin. Although, the first crypto exchanges did not arrive on the scene until 2011. By 2014, several exchanges were in operation. Today, according to data obtained from CoinMarketCap, there are a total of 222 fully functional exchanges.
Investor demand for cryptocurrencies has exploded during the past few years. For example, the market capitalization of Bitcoin has increased 1,183% since the first quarter of 2014 (Statista). In 2014, daily crypto volume was approximately $53 million. Today, it’s not uncommon for daily volume to exceed $14 billion (CoinMarketCap). This represents an amazing increase of 26,000% over the course of four years.
Cryptocurrency and Futures Trading
The demand for cryptocurrency futures products has also increased dramatically over the past few years. The Chicago Board Options Exchange (CBOE) and Chicago Mercantile Exchange (CME) introduced regulated Bitcoin futures in December 2017. Daily volume continues to grow at both exchanges.
Based on a report released by CCN, daily Bitcoin futures volume at the CME increased 41% in Q3. Average daily volume (ADV) was 5,053 contracts during the third quarter compared to 3,577 contracts in the second quarter. For 2018, ADV is up 173%.
In addition to the United States, cryptocurrency trading volume is exploding in other countries. For example, in Japan, Bitcoin futures volume has risen from $2 million in 2014 to $543 billion in 2017. The rate of growth in Japan is absolutely incredible. As of March 31, 2018, Japan had 3.5 million cryptocurrency traders. These statistics were released by Japan’s Financial Service Agency (FSA).
Digitex Futures Will Capture a Huge Market Share
Digitex Futures has selected the perfect time to open its commission-free futures exchange for business. Cryptocurrency futures volume is moving relentlessly higher as traders and investors are abandoning traditional investment vehicles in favor of assets derived from blockchain technology.
Aggressive traders will be particularly pleased with Digitex because of its large tick sizes and automated market makers used to increase liquidity and speed of execution.
In addition to its advanced UX and features for frequent traders, Digitex has minted a native cryptocurrency, the DGTX token. DGTX will be used in all phases of the customer’s interaction with the Digitex Exchange and is already outperforming all major altcoins.
Digitex Has the Potential to Realize Exponential Growth
As we discussed previously, there are five major asset classes (equities, fixed income, commodities, cash, and alternative investments). Cryptocurrencies could easily become officially listed as a sixth asset class during the next decade based on increased investor demand.
In fact, cryptocurrency trading volume is on pace to exceed the trading volume of US corporate bonds in 2018 (based on a report released by Satis Group). This is a huge development. In less than 10 years, crypto volume has already exceeded the volume of all corporate bonds issued in the United States! Anyone who thinks cryptocurrencies are just a fad has been proven 100% wrong!
Digitex Futures is perfectly positioned to capture a huge amount of cryptocurrency futures trading volume, as traders and investors move away from traditional investments in exchange for cryptocurrencies and tokens stored on the blockchain. 2019 is shaping up to be a great year for Digitex!
Digitex Futures writers and/or guest authors may or may not have a vested interest in the Digitex Futures project and/or other businesses mentioned throughout the site. None of the content on Digitex Futures is investment advice nor is it a replacement for advice from a certified financial planner.