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Crypto webinar on 18.10.17 follow up


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All trading involves risk. Losses can exceed deposits.


Hi all - On Wednesday we ran out of time in the Q&A section of the Crypto Webinar. I have included some of those questions below. If you would like any further assistance on this please let me know in the comments section. For those who haven't seen this please note you can see the webinar here where we talk about blockchain and cryptos in general.


Q: What do you think about some people calling bitcoin a speculative bubble?
A: There is no doubt in my mind after the last 18 months worth of exponential gains that bitcoin isn't due a correction at some point. Determining a true value for bitcoin and other crypto currencies is incredibly difficult, and this is the crux of the question we are talking about: "what is the true value of bitcoin?"


Assets such as shares are generally a lot easier to price because you can back this up with cash flow, value held in company assets, speculative earnings, and other related figures. Even commodities have factors which helps determine price - for example if it costs 'X' to extract a barrel of oil, then the natural ebb and flow of global supply and demand will provide a truer reflection of the price.


With cryptocurrencies value is held abstractly. You can't focus on asset backed value, but instead need to look towards potential. Ether arguably has far greater potential in the long run, but bitcoin maintains it's 'first to the table' brand status at present (assuming it doesn't rip itself apart with the recent consensus polls).


Things which I primarily look for is governmental policy, adoption both in industry and individuals, underlying technological change, and general sentiment of the wider media. In the short to mid term I think there will be a significant correction on the downside, but I think over the longer term (lets say 5 years) an increased adoption, wider understanding, broader and easier 'on ramp' locations, and fixed supply will continue cryptos upward trend. As we note in the webinar there are a number of times that bitcoins value has halved or more, and there is nothing stopping from this or worse happening in the future. 


Q: If I have submitted a order and I would like to amend the ticket to cancel at a certain time if not triggered, how do I do it? It is possible on the classic platform?
A: This currently isn't possible I'm afraid. I shall pass this back to the desk and dev teams as we periodically collate all feedback to make sure the dealing platform follows the 'build for traders by traders' philosophy.You can however access your dealing account via our iOS and Andriod app, set alerts on all devices, and give us a call at any time of day to cancel an order. 


Q: Can you actually buy bitcoin via IG ? If its value increases you just sell it or hold it until such a time that it does?
A: This isn't possible. IG specialise in trading software to speculate on price action via either a spread bet or CFD trade.


Q: What actually increases or decreases the value of a cryptocurrency?
A: I have helped write a very in-depth crypto eBook which will be making it's way to all seminar sign ups shortly, as well as being accessible via IG.com. This will cover a number of points but let me try and summarise here. If you would like me to go into more detail, please let me know in the comments section below.


  • Supply and demand (i.e. coin supply etc) 
  • Governmental policy and legal issues
  • Mainstream media and fundamental events
  • Innovation and technological advancement
  • Mining profitability
  • Increased on ramps from fiat to Cryptocurrencies
  • Investor sentiment, and celebrity coverage

Q: Is it possible to re-watch this seminar?
A: Sure is! Check the link above as well as your personal email. Anyone who watched the webinar in real time, along with all who signed up, will have been contacted. Everyone else can use the above link.


Hope this helps. 



This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

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