Using Bitcoins for Commodity Trading?

In order to improve the bitcoin economy and link it to global trade, the first and most important step is to use bitcoin as a medium of exchange in Commodity Trading. What does it mean? Let us assume that a farmer in India should be able to sell his wheat crop to a wholesale dealer located in Nigeria using bitcoin as the currency of the transaction. If this can be achieved, then bitcoin can be really used for commodity trading across the globe.

A commodity market is basically a market that trades in raw materials used for manufacturing a product rather than the product itself. Commodities can be either Hard or Soft. Gold, Silver, copper, and Oil are examples of Hard commodities. Wheat, Coffee, Corn, Sugar etc. are examples of Soft commodities. USD is dominating the commodity trading as it is the widely accepted currency throughout the world.

Commodity trading works in two ways. It can be a direct physical trade or derivative/future trade.

Physical Trading – It is also called Spot Trading which means that the goods are sold and delivered on the spot. The price of the commodity will be quoted before the sale and the full settlement of the trade will be finished within 2 or 3 days. But the major drawback in this type of trading is that only farmers, producers or wholesale dealers can participate in this type of trading.

Future Trading - In this type of trading, a future contract is created and signed between the two parties about the selling price and quantity of the commodity. But the actual sale will happen at a future date with the agreed price. A brokerage account, as well as a minimum deposit for the commodity, is necessary to participate in future trading. Unlike the physical trading, the access is not restricted and any type of investor or speculator can participate in this trade.

Because of its impressive growth in the past few years, bitcoin is the right candidate for using as a medium of exchange in Future Trading. A company named Gloitex Limited is developing a new global exchange and trading platform to improve the bitcoin economy and eventually link it to Global trade. It has formulated innovative concepts and technologies to scale the bitcoin as a currency. To learn more about the following concepts, please visit https://www.globitexico.com/wp.pdf

1. Developing Bitcoin Markets and BIBOR (Bitcoin Inter Broker Offered Rate)
2. Spot FX for Bitcoins
3. REPO for Bitcoins
4. Bitcoin priced Globitex commodity index – GCOM

Globitex will be restricting the access of its exchange to only holders of GBX tokens. GBX is nothing but a smart contract based token that will be released by the company during its token sale. The standard of GBX token is a complaint to Ethereum EIP-20. Investors or speculators can buy this token using Bitcoin, Ether or Bitcoin Cash.

Please visit https://www.globitexico.com/ to gather complete information about the schedule of token sale, price and benefits of GBX token.

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