The Development of Cryptocurrencies in the Derivatives Market

Abstract

In order to analyse the derivative market, first it had to be established what is required for such to succeed. A conceptual framework was developed based on similar cases of the past and scientific research, as there is no established theorem regarding cryptocurrencies. The framework has found three pillars that are a prerequisite for a derivative exchange to thrive, volatility, money at risk, and number of market participants. Hence, these three aspects were investigated