Introduction

Digital world is like a hidden mystery. The more you dig in the more curious you get about it. Bitcoin cryptocurrency is among ot the most commonly used and preferred type of digital currency. Bitcoin has many unique characteristics and these characters make Bitcoin favorite of many traders and investors. Not only individual dealers but a number of ventures are also seen interested in infusing money by the platform of bitcoins. Bitcoins are very unstable in nature. Their rates keep on going up and down and sometimes it is seen that this shift in the price of the Bitcoin can be very dreadful for its users specially for those who are new in it.

Hurdles faced by bitcoins

You may have thought that why Bitcoin is still not regulated as a formal official or functional currency. The ans to this question is very simple.

Bitcoins are highly volatile and elusive thus government officials and banks don't trust them to be part of the mainstream. Here it should be kept in mind that Bitcoins are still a part of main stream as we can see that organizations like PayPal (News - Alert) have started making measure so that they can start dealing in Bitcoins.

Analysts of the crypto World say that Bitcoin cannot be used as a functional.and conventional currency beacuse of its unstability. The elusiveness of the Bitcoin is the actual hurdle that makes it to stand at the door of the central currency World.

Banning of Derivatives

Here we will discuss that what is the impact of banning the derivatives on the acceptability and stability of the Bitcoins. This phenomenon is very important to understand specially if you are someone who finds Bitcoins and other cryptocurrencies interesting.

Whenever an individual infuse their money in the crypto derivatives, they are actually providing a way out for Leverage. This means that this investment made by them will provide them with a chance to either gain a humungus profit or the worst case scenario will be a huge loss.  The leverge ratio of every country is different. For example a number of states in Asia allow an investment of around 15 percent or sometime upto 90 percent more then the size of the actual trade. Eventually talking this is a huge value.

Bitcoin leverage

The Leveraged tradings and dealings have a number of consequences on the crypto world. For example this will make the investors and the money infusors to enter and to leave the market of the cryptocurrencies at a much higher pace. As they enter or leave the market , the amount of profit they have made or the amount of money they have lost starts impacting the trade value of the actual digital currency. These low levers derivators and thus banned by a number of governments like the US government. The derivatives and their leverage increase the volatility and the unstability of the digital currency.

Although this ban has not a very huge impact on the market trend but still we can't say that this will have no influence at all. You can't ignore the significance of this ban. For more go check Immediate Edge trading.

Market abuse

Sometimes the derivatives provide an ability for the user to infuse money in the digital currency. As the ban will be progressed the number of derivatives will decrease. This decease can be not so favorable, specially for the trading value of the Bitcoin. Well this statement is still no stamped by any official. But this is a fact the a decrease in leverage will result in a decrease in the overall performance of the Bitcoin cryptocurrency.

A chance of the liquidity crisis is also possible If the trends of the Bitcoins will keep on showing unexpected turns.  The reason behind the liquidity will be the backing off by major traders and investors of the Bitcoin cryptocurrency.

According to an estimate as soon a stage US government issues the chargers a huge amount of investors took their money back from the Bitcoin. Around 30 Percent of investors took off their investment.

The Financial crisis of the Bitcoin cryptocurrency is somehow related to the novice investors but on the other hand some of these have a very smart startegy for investing in the crypto World but they lack proper execution. In addition to these competant investors there is a huge amount of those too who know nothing about the stability or unstability of the Bitcoin and are throwing themselves in blindly.

Bottom line

Anyways, we should always look at the bright side of the picture. And at this stage the bright side is that you can never be sure about the trends of the Bitcoin cryptocurrency. The FCA ban and all the derivatives who are being stoped can have a positive impact of the elusiveness of the Bitcoin cryptocurrency. These steps form the governments also reflect the point that this is a time when people have made their minds to accept digital currency as a proper functional and effective currency