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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Don Green who wrote (20220)	10/26/2017 11:12:56 PM
From: Elroy	2 Recommendations Recommended By John Pitera mary-ally-smith Read Replies (1) \| Respond to of 33421

Bitcoin represents a $1.6 billion revenue opportunity for Wall Street's exchanges. I doubt this is going to be correct (that there is $1.6 billion in revenues for Wall Street firms) in trading commissions. I guess the $1.6b is commissions, right? I trade crypto often on the Waves Decentralized Exchange. Each trade costs 0.003 Waves. One Wave is $4.00 or so, so the commission per trade is about 1/10th of a penny? As time goes on, crypto folks like the Waves team will add crypto options trading functionality, and it will cost peanuts in commission. Waves wins by attracting users, not by charging them anything. Commissions are going to go to zero in crypto land too quickly for the CBOE to get up and running on Bitcoin futures and options I think. That's my hunch. Nowadays there are massive centralized crypto exchanges - the one described in the article (Gemeni) is one of them. Waves is a decentralized exchange. The Waves network - which is decentralized like Bitcoin - allows it to work, but there's no need for commissions to support a centralized profit making entity. The many individuals who run nodes on the Waves network get some fees (in the form of Waves coins) for running the network, but the more stuff the network can do and at a lower cost, the more people will use Waves, and the more one Wave will be worth. CBOE won't be able to keep up, I think. And CBOE will need to worry about the interface between crypto universe (it's all in the cloud) and the CBOE systems. Waves (and decentralized exchanges like it) are 100% inside the cloud, so I don't think legacy operators like CBOE can break in, and win. but who knows?