AUDIO: Steve Georgy, VP of Allendale
An electronic currency called bitcoin is set to go live on Chicago’ Board Options Exchange Sunday night. It is a worldwide payment system. Steve Georgy says it is the talk of trade but be cautious.
“Bitcoin is something you either love or hate right now. That is the relationship you are getting out there. It is going to be traded but it is very volatile, and it is going to remain that way,” Vice President of Allendale Steve Georgy says.
It is the first decentralized digital currency. The system works without a central bank or single administrator. Georgy says look back to the dot-com boom or the invention of My Space (an online community like Facebook).
“It is going to stick around but just be careful. This is the very first one and a lot of times it usually doesn’t work out as well as people think. It is something that will cause a lot of volatility. (However), it is causing a big stir here before we can even trade one.”
CME Group will begin trading futures contracts Sunday night December 17. Georgy says bitcoin shouldn’t affect the grain markets. On Friday, one bitcoin was worth $16,000.