Jose Llisterri | Source | Co-Founder at Interdax

The reduction of the daily issuance of bitcoin from 1,800 to 900 BTC will gradually influence the market and should in theory push prices higher in the long term. The contrast between the traditional monetary system and the fixed supply schedule of bitcoin could also boost demand for the cryptocurrency. As inflation within the Bitcoin system is now 1.80% for the next four years, which is lower than the mandates of most central banks and almost lower than gold’s rate of inflation, this sets the stage for bitcoin to make its mark.

Traders should look for exchanges that have a robust index that draws prices from different spot exchanges to ensure that sudden price movements do not cause unnecessary liquidations and to avoid price crashes.

Putting circuit breakers in place violates this principle, as there’s always one side of a particular trade that is adversely affected by a pause in trading. But because of the nascent stage of the industry, and as evidenced during the March crash, the liquidation engines of the most popular derivatives trading venues oftentimes cannot handle the [trading] load, and ends up distorting the market.