Bitcoin has been the headline grabbing asset of 2017, but why was it created and what makes it so valuable?
Bitcoin was created in 2009 by an anonymous developer who went by Satoshi Nakamoto as a response to the 2008 financial meltdown. There was a distrust in the banking system when banks who were too big to fail had to be bailed out…Bitcoin was Satoshi’s answer to the problem.
Its value was originally derived from the fact that it was a currency that was deflationary in nature with a low fee structure. As usage and speculation has increased, the blockchain hasn’t been able to handle the transaction capacity and so the fee market has skyrocketed. With high fees, Bitcoin is less useful as a currency and many now consider it to be an inflation hedge and store of value.
On the next episodes, we will talk about the CME Bitcoin Futures and their contract specs.