Wall Street has solved a major problem for Bitcoin: market volatility. It paves the way for the currency to become widely accepted as a means of trading among traders.
This is a very good development for the "currency of the people".
Starbucks and Dunkin Donut refer to Bitcoin for the obvious reason: accepting bitcoin as a means of payment for their products will create a lot of noise for the two chains among young customers who are fascinated by the digital currency.
However, they have not yet made it acceptable as a way of paying for coffees and lattes.
Why? It is difficult to answer. Perhaps they are worried about the volatility of the digital currency, which could bring considerable damage if it collapses against the dollar.
This problem, however, belongs to the past as Wall Street recently solved it with the creation of bitcoin futures. Starbucks, Dunkin Donuts and any other retailer concerned about this outlook can sneak into the bitcoin futures.
This means that any losses in the spot market will be offset in the futures contract.
Meanwhile, Wall Street is introducing new products, such as the Bitcoin Investment Trust, which allows broader investment in the bitcoin market - and could help the digital currency move from "innovation" and "early placement" to Rogers curve, in the "early majority". This is the case when the demand for a product develops into a torrent and the product becomes epidemic.
And this is good news for bitcoin bulls, as "epidemic" means higher bitcoin prices, especially since the bitcoin offer is limited, provided big governments, big banks or hackers do not spoil party.
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