Chicago Mercantile Exchange is an exchange operator that operates on contract-based market share for traders of futures contracts all over the world. It recently launched Micro Bitcoin, a contract that aimed at growing the Bitcoin network by adding in the value of 1/10th of Bitcoin and making it widely available. It is aimed at the active traders on a small scale when compared to the other contracts offered by CME, consisting of five bitcoins that come out to be expensive.
This smaller and much more accessible version of Bitcoin is opening many new doors to trade than it earlier has been able to do. While there are more than 9000 digital currencies currently listed for trade, almost 60% of the market is captured by Bitcoin and Ethereum only. Providing small-scale traders to own these micro finances and micro cryptocurrencies helps broaden their horizon in terms of the future of trade. Micro Bitcoin is said to increase liquidity in the market of cryptocurrency and at the same time works effectively in lowering the margins bringing in large numbers of newer small-scale traders who could not afford to trade in whole quantities of Bitcoins and ether. At $58000, bitcoin trades are not as easily accessible to the general traders, and that was resulting in a narrow gateway for only the bigger traders to mine and trade these cryptocurrencies. Since the introduction of Micro bitcoin, people can easily own and trade fractions of these bigger and much more expensive cryptocurrencies. However, these contracts come with a $2500 margin percentage that protects the micro trade from unwarranted market participants.
Bitcoin is already the leading name in terms of market capitalization and in terms of popularity. The miners and traders of these cryptocurrencies and market analysts are optimistic that bitcoin, which is currently priced at $55,331 is likely to double in value and reach close to $1,00,000per token by the end of August this year. This means the Micro traders are very likely to increase constantly in numbers, and more and more people will be interested in the concept of partially owning a token that proves to be a great investment for the future.
The concept of Micro Bitcoin is to strengthen its presence in the market and broaden the wide variety of traders it invites daily, all while increasing the demand and market value for the cryptocurrency in question. The CME says more than 100,000 of the micro bitcoin future trades have already taken place, and it has not even been a whole week since the introduction and implementation of this Micro trade option. The future of Micro Bitcoin seems promising as it matures and brings in more and more trade possibilities.