x
Phemex, a cryptocurrency derivatives exchange, has added a gold/USD trading pair.
This move opens the door for Bitcoin traders to take advantage of declining gold prices. It is also a further step in the maturation of the crypto market.
Josh Rager, co-founder of Blockroots, made the announcement on Twitter: Now you can short Gold on the same platform you trade Bitcoin Perp swaps for GOLD/USD have been added to https://t.co/G53YTHoQMV Take your gains from shorting gold and cash them out in BTC And don’t forget to tell Peter Schiff about how much Bitcoin you stacked shorting Gold pic.twitter.com/S1rffSjElB
It is not known whether or not Phemex made this addition as a result of the sudden drop in gold. Nevertheless, the move is popular with a notable degree of liquidity emerging. Although the exchange does not offer a direct BTC/gold pair, traders can easily swap between gold, Dollars, and Bitcoin.
As with all commodities, trading gold carries risk. Investors should always do their research and exercise caution. The current global turmoil has translated into extreme volatility for all precious metals. Gold has fallen for several days as work stoppages have increased the need for quick cash. However, today it has spiked on fears of inflation and an incoming loose money policy from the U.S. Federal Reserve.
Crypto traders have been eager to take advantage of this volatility. Given the demand it is safe to assume that many more exchanges will soon add gold to their offerings. Many opportunities exist to purchase Bitcoin with gold, and vice-versa, yet Phemex is the first to allow daily trading and derivatives. With gold as a traditional safe haven during times of economic stress, the ability to transfer its value into the crypto space is intriguing. Long term investors may now become more willing to explore Bitcoin as a potential safe haven as well.
Bitcoin and other blockchain assets have long been outliers in global finance, yet their presence has become too significant to ignore. Increasingly they are proving their legitimacy, notably as a result of adoption across a wide array of industries. Moves to integrate various legacy commodities into the crypto space are only growing. Likewise, traditional brokers of all types are eager to begin working with blockchain assets.
Such steps are certain to invite greater interest from regulators and governments as well as funnel vast amounts of fiat into cryptocurrencies.
Bringing Bitcoin into mainstream global finance remains controversial among crypto advocates, as many purists believe that the blockchain economy should remain independent. Nevertheless, as the value of Bitcoin and altcoins grows, it is inevitable that all markets will interact. In fact, mass crypto adoption depends on it. Will you be shorting gold to make more Bitcoin? Add your thoughts below!
Article Produced By
Bitcoin News
https://thebitcoinnews.com/bitcoin-traders-can-now-stack-sats-by-shorting-gold-price/
