Elon Musk thinks paper money is going away and crypto will take its place | The derivatives market is heating up in crypto, and Binance might be the next firm to jump in

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“It bypasses currency controls. And crypto is a far better way to transfer value than pieces of paper. That's for sure. Without a doubt." — Elon Musk, CEO Tesla

The Big Block

Cryptocurrency trading is stuck in the doldrums but one corner of the market is heating up, according to numerous market specialists. 

Derivatives. It’s a word that has finally found its way from the world of pedantic Wall Street parlance to the center of the crypto trading world. Derivatives markets cover an array of financial products including options, futures, swaps, contracts for differences — all of which provide exposure to the market in a way that doesn’t touch underlying crypto. 

Such products are becoming more attractive to firms facilitating crypto trading as volumes remain stagnant in the underlying spot market. They are also the focus of a number of new firms launching this year. 

“As an ecosystem matures, and as the crypto ecosystem matures, people look for new ways to express a view of the market,” Thomas Chippas, chief executive officer of ErisX, said in a phone interview with The Block. ErisX is one of the crypto firms set to launch a derivatives exchange this year in the United States — among others including Intercontinental Exchange’s Bakkt and SeedCX.  

Read More on The Block (4 Minutes)


Around The Block

Voting app Votem shuts down Cleveland office before Series B raise

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Elon Musk thinks paper money is going away and crypto will take its place

During an episode of ARK Invest's FYI podcast with Elon Musk the discussion veered away from Tesla and into Crypto. Musk's answers, though limited, were enlightening.

"Crypto, seriously?" he asked when the hosts brought it up. He laughed, recalling a time when crypto got him in trouble. — More


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