The 3rd of January 2009 marked the start of the most disruptive financial system in recent generations; the Bitcoin genesis block. Bitcoin started with the goal of creating decentralized peer‐to-peer electronic cash. This innovation spawned a multitude of different cryptocurrencies. A whole ecosystem of companies has sprung up to take advantage of this new technology. While the creator of Bitcoin originally proposed Bitcoin would be used as a peer‐to‐peer currency, a global trading and investment ecosystem has emerged with explosive growth. The potential returns and speculative nature of future use cases has attracted a lot of interest and all kinds of traders and investors, from novice to professional to institutional.
Cryptocurrency prices remain volatile, but their volatility is still just a fraction of the regulated forex, bond and stock markets. This volatility is driven by the significant trading / investment activities, development of additional use cases, and the uncertainty of future government regulation. It is Dimensions’ fundamental view that the value of cryptocurrencies will continue to grow and so will the demand for industry leading and professional trading platforms to facilitate the exchange of digital assets between the parties involved. Increased adoption will help to drive prices, but hedging strategies and diversification will become vital to protect one’s portfolio value. In general, Dimensions considers cryptocurrency to be similar to commodities, and the natural next step is the development of Options and Futures Contracts. These derivatives will form the basis of hedging strategies and give individuals and organizations the tools to protect their positions.
An Unstable and Underdeveloped Market:
2017 and the first half of 2018 has been an exciting year for cryptocurrencies with massive price gains across the board. However, there is still a lot of technical development needed before they can become mainstream and reach a level of price stability.
Many organizations are working on technical solutions to address the key limitations of the current ecosystem and these innovations tend to focus mainly on scaling and decentralization. Dimensions Network is one of these organizations, setting multiple objectives to complement instead of compete with existing initiatives. We will stand on the shoulders of giants, and use their exceptional technologies to build real world solutions which will generate solid returns. This will be achieved by operating a professional cryptocurrency trading platform, with a full range of services from coin pair trading to options, futures and other derivatives; and establishing the exchange as a leading centralized and decentralized trading platform within the crypto ecosystem with interconnected liquidity pools.
It is no secret that the current crypto exchanges are struggling to keep up with the growing demand of this dynamic market. Over the course of the last few months a number of leading exchanges had to shut their doors to new traders and investors, simply because they cannot handle the transactional load and user traffic. Time-outs, slow processing and freezes are also not uncommon to the industry and this illustrates that the rapid market growth and user traffic was not anticipated. Dimensions’ approach to this is to build the exchange from the ground up for scalability and efficiency. A massively scalable exchange coupled with advanced trading features sets Dimensions in a good position as a newcomer to the market, to capture market share and become and industry leading cryptocurrency exchange in the future.