Good news for all the pro-bitcoin people, Bitcoin moves a step closer to being acknowledged for mainstream adoption. With the launch of Bitcoin index on New York Stock Exchange, this digital currency will certainly become more credible in the face of conventional acceptance.
Meeting the Customer Needs
Thomas Farley, NYSE President, made the announcement early on Tuesday that Bitcoin index will now be listed on the stock exchange in order to meet the growing customer demand. He also pointed out that Bitcoins are becoming data points on which the customers would like to keep a tab on so that they can contemplate trading or investment in this upcoming asset class. With Bitcoin launched as an index, it will gain the transparency and credibility to be considered as a serious currency.
This new index will evaluate the price of Bitcoin based on USD by assessing all the transactions that have been processed across all the exchanges. They however clarified that only those transactions will be evaluated that meet the NYSE standards a quality while assessing the digital currency value.
In 2013, Bitcoin experienced a massive downfall when Mt. Gox faced intense losses at the hands of hacking and cyber theft of millions of dollars worth of Bitcoins that plunged the currency from $1200 to $230 that it is being traded on today.
NYSE Funded CoinBase for Initial Data
Earlier this year, NYSE placed their funds and trust in CoinBase, the start-up company that will supply the data that NYSE requires.
Big Names joining the Bandwagon
Not just NYSE but other robust businesses such as Goldman Sachs and Larry Summers, former US Treasury secretary have become involved in the Bitcoin in some capacity through their investments in start-up companies. They not only earn seats in their board of directors but also get access to these underlying technologies.
Farley says that there is a possibility of not being able to meet the expectations of crypto currency enthusiasts. However, they are also willing to take more risks and make some more investments to perfect the technology. They will either get it absolutely right the first time or learn from their mistakes and quickly move on.
Business Insider also reported that Bitcoin is just one of the many indexes that they plan to launch this year.
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