The new index will go live on April 29, 2016.“Basically we want to simplify things for market makers and arbitrage traders,” said BitMEX CEO Arthur Hayes.Available 24/7, it will be a weighted index based on some of the most popular bitcoin exchanges: Bitfinex, OKCoin USD, and Bitstamp — though no one exchange may have a weight over 50%.To keep traders as well-informed as possible, the index price is updated every five seconds.Kaiko will re-calculate the weights on the last Friday of every month, with data based on the previous 30 days’ volumes.How the index weightings change over timeIf a single exchange’s API goes down it is not de-weighted, but the price and weight are held constant until the next update.The weights are fixed, so users always know what is in the index — and it is very clear how API outages are handled.Kaiko CEO Pascal Gauthier said partnerships like this are good for the bitcoin industry:“At Kaiko we’re very impressed by the innovative and data-hungry products BitMEX is offering to traders.

It’s important to create tools which support the development of a stable bitcoin ecosystem.”Kaiko is also providing API access to BitMEX Index data over HTTP and WSS.The Kaiko Bitcoin Price Indices (KXBT) have proved especially popular in the market, using weighted averages developed especially for the task by Kaiko’s team of data experts.Calculations are performed to give an accurate reflection of bitcoin’s true value worldwide based on exchange order book data and with the ability to ‘iron out’ discrepancies caused by technical or other problems at individual exchanges.About BitMEXBitMEX launched its popular bitcoin derivatives exchange for bitcoin traders in November 2014 after winning startup awards in Hong Kong.Founded by an experienced equity derivatives trader and banker Arthur Hayes, a high-frequency trading technologist Ben Delo, and an application developer Samuel Reed, it provides a platform and suite of tools to professional cryptocurrency traders.These include derivatives trading with daily, weekly and monthly contracts on three of the most popular bitcoin exchanges, with available leverage from 3.3x up to 100x.

This week, we turn our focus on the best performing currency in 2016: Bitcoin, which more than doubled its value.The question on why cryptocurrencies, such as Bitcoin, are increasingly used and traded has always been something that piques curiosity.korean bitcoin atmCryptocurrencies are a type of digital money designed to benefit from the architecture of the internet.bitcoin chromebookInstead of using a recognised financial institution to verify transactions, cryptocurrency transactions go through checks performed by computers on the currency’s network.ethereum hashrate chartThe users of the computers receive a small amount of the currency as a reward for “mining”.bitcoin ghs trade

This process is also the main way to produce more of the cryptocurrency.Its digital nature enables inventive ways to use it.For instance, unlike credit cards, which require an account or a good credit, cryptocurrencies can generally be used impersonally.bitcoin brute forcerA widening range of retailers and individuals, such as Subway or Microsoft, now accept Bitcoin as a form of payment.bitcoin miner icelandWhile a fee may be incurred for the transaction, it typically remains lower than the fee charged to credit card users.raspberry pi bitcoin shopAnother widespread practice is the use of minor amounts to tip people on social media and blogs (Reddit, etc.)bitcoin quotazioneSome interesting legal issues have come up with Bitcoin.bitcoin farmer program

Governments, attempting to navigate through the unclear waters of the nascent currency, have responded with different degrees of protection around the world.The result is the lack of a unified regulatory landscape for Bitcoin.For example, except for several countries like Bolivia and Ecuador, governments in the Americas tend to take a very hands-off approach to Bitcoin.Europe has a similar story.By contrast, countries in Russia and Asia take a more cautious approach to the new currency.The UK initially imposed a VAT tax on Bitcoin mining, though this was abolished in March 2014, and now the HM Treasury has made a call for information on the digital and crypto currency landscape to make more informed decisions on how regulation should be introduced, and on who should monitor it.Many European countries, including Belgium, Portugal, Greece, Hungary, and Croatia, have merely issued public warnings that there is no government oversight for the currency.But why do these varying levels of regulation matter?

Whereas arbitrage opportunities have largely been struck out over the years, the emerging, nascent status of Bitcoin paves the way for some golden opportunities.The fragmented nature of the Bitcoin market provides the perfect combination of arbitrage opportunities across multiple exchanges, combined with zero transaction costs to be found on Chinese platforms.However, because of the influx of responses from sophisticated traders seeking to capitalise on such opportunities, the most lucrative arbitrage openings are diminishing considerably over time.Traders must also balance the gains from Bitcoin trading against the risks, such as cyber-attacks on Bitcoin exchanges.The Chinese government has also begun to crack down on traders with inappropriate agendas, wary of those using Bitcoin trading as a means to move wealth overseas, conducting money laundering and market manipulation inspections.It is expected that these opportunities will last for a few years until consensus is reached among key countries.