And shows one consequence of dual-class share structures
Archives for June 20, 2018
For several years banks have eyed the crypto movement with fear and distrust. Crypto’s ability to undermine much of their business model should no doubt be concerning to them, but at the same time cryptocurrency opens doors to new possibilities. The simple fact that decentralized blockchain assets are now a permanent part of the financial landscape should be reason enough for banks to embrace the technology, and now many are beginning to do so.
Although crypto advocates have long asserted that blockchain assets will enable the public to break free from the banking industry, the truth is far more complex. Banks have the capacity to offer many necessary financial services that, at least for the time being, can be very beneficial for crypto users. Cryptocurrency businesses, for example, still need banks for issues such as payroll, fiat conversion, and loans. Many individuals also link bank accounts to crypto exchanges for purchasing.
Although most large banks are reluctant to work with cryptocurrencies, a number of smaller community banks have become more receptive. San Diego-based Silvergate Bank, for example, provides services for more than two hundred-fifty cryptocurrency companies, including some of the largest exchanges. Other small banks that have embraced crypto include Metropolitan Bank in New York, and Cross River Bank, in New Jersey. These institutions understand the risks associated with the crypto space, but believe that such moves give them an advantage over their much larger competitors.
It is worth noting that these banks still only work with fiat currencies, and banks have yet to begin managing crypto directly. It is nonetheless reasonable to assume that as crypto adoption grows, banks could begin to do so. They are fully aware of the substantial profits being made by fiat-to-crypto exchanges, and they are in a perfect position to offer similar services. It is highly unlikely that they will sit idly by while such an industry develops.
There is also the very real likelihood of crypto exchanges offering more traditional banking services. Coinbase, for example, has already begun to explore the option of obtaining a bank charter. Such a move would enable it, and other exchanges, to offer many more services, such as federally insured fiat accounts.
There are, of course legal and regulatory issues to overcome, and central banks have not embraced the idea of banks becoming involved in crypto. In fact, in some countries central banks have attempted to ban banks altogether from dealing with it. Nevertheless, it is folly to assume that banks can be prevented from participating in such a revolutionary industry, especially now that even the staunchest critics of cryptocurrency have come to respect the technology.
It is also reasonable to argue that bank involvement will be a positive step in bringing cryptocurrency into the mainstream. By both supporting crypto businesses and directly offering crypto investment, established banks will add legitimacy to crypto in the eyes of the public. Also, although the ability to manage one’s own wealth is a key benefit of cryptocurrency, many people are certain to be more comfortable with their coins in a bank sponsored wallet, held and secured by professionals.
Given the significance of the cryptocurrency revolution, banks are all but certain to become involved in blockchain assets. The few steps that have been taken are but a glimpse of what is to come. The means by which banks will shape cryptocurrencies, and of course adapt to them, remains to be seen.
Featured Image via BigStock.
- ETH price found a strong support around the $525 level and recovered against the US Dollar.
- Yesterday’s highlighted important bullish trend line is intact with support at $518 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to continue higher and it may perhaps target a new high above the $545 level.
Ethereum price is trading with a positive bias against the US Dollar and Bitcoin. ETH/USD could accelerate gains above the $545 and $548 levels in the near term.
Ethereum Price Upside Move
After a downside correction below $530, ETH price found support against the US Dollar. The price tested the $520-525 support zone and recovered nicely. There was a decent base formed near the 50% Fib retracement level of the last leg from the $485 swing low to $548 high. More importantly, there was no break below $520 and the 100 hourly simple moving average.
A new upward wave was initiated and the price climbed above the $530 resistance. There was a break above the 50% Fib retracement level of the last decline from the $548 high to $517 low. At the moment, the price is trading near a major resistance zone and is testing the $545-548 zone. A break and close above this may perhaps open the doors for more gains above the $555 level in the near term. On the downside, yesterday’s highlighted important bullish trend line is intact with support at $518 on the hourly chart of ETH/USD. Before the trend line, the $525 support and the 100 hourly SMA could stop declines.
Looking at the chart, the price is trading with a positive bias above $530. A break above the $548 high could really put a lot of pressure on sellers and ETH could jump above the $555 level.
Hourly MACD – The MACD has moved back in the bullish zone.
Hourly RSI – The RSI is now back above the 55 level.
Major Support Level – $518
Major Resistance Level – $548
The post Ethereum Price Analysis: ETH/USD Targets New Highs appeared first on NewsBTC.
A blockchain developer has created a Pokemon-themed game running on the Lighting Network (LN) to prove its technical capability.
Move over Kitties
While blockchains are touted as a disruptive advancement to take the world by storm, the real-world applications have thus far been sporadically observed. But, the gaming industry is experimenting with the decentralized ledger network, as it usually does with newer technologies.
All commands cost ten Satoshis, the lowest denomination of bitcoin, which are processed via the LN. Furthermore, the application uses the Lightning-enabled OpenNode, a bitcoin payment processor, to process payments.
— João Almeida (@joaodealmeida94) June 19, 2018
Notably, the LN does not result in a significantly better user-experience or provide an edge over traditional gaming software. However, the game is devised by Almeida to show the network’s capabilities to naysayers, in addition to Lighting’s fast payment processing.
Community Takes Dig
The LN is rivaled by cryptocurrencies like Bitcoin Cash, which promise similar results, and the cryptocurrency community is divided over their benefits. Poketoshi users, in this instance, took digs at the Bitcoin hard fork on Twitter:
— masen (@masen_io) June 16, 2018
The game is yet another real-world test for the LN. In May 2018, the network was used to process payments on a fully-functional candy dispenser, christened “sweetbit.” To operate, the machine tracks incoming bitcoin transactions and dispenses an equivalent amount of candies. Creator David Knezić stated the dispenser was an effort to display the ease of integrating bitcoin payments into everyday appliances.
In June 2018, an anonymous developer built the Satoshi’s Place, as advertisement board described as “innovative, dirty, and wacky” and utilizing the LN for its upkeep.
For the uninitiated, the LN is a second layer protocol mainly used by Bitcoin which helps make exchanging value more efficient via off-chain channels between two or more parties. The technology is still in late stages of testing, but results are highly promising. In April 2018, the network processed over $150,000 worth of cryptocurrency without any stoppages.
The post Lightning Network-Powered Pokemon Game Displays Ease of Processing Bitcoin Payments appeared first on BTCMANAGER.
Charitable donation is the lifeblood of global NGOs like WWF, yet the good intentions of donation come hand-in-hand with issues of their own.
Accountability for the donation, the transaction costs of processing so many individual contributions, and confirmation of the donation for tax purposes are just a few of the challenges that Proxeus and WWF aim to overcome with this test case.
Starting with a prototype blockchain-powered donation confirmation engine, this project aims to empower consumers to donate more easily while reducing administration costs associated with processing these donations, ensuring more of the donation goes to its intended purpose. For the prototype, no real donor data was used.
“This is a real opportunity to use our technology for social good,”
said Antoine Verdon, co-founder of Proxeus.
“We are helping ensure that the donations go where they have to. By minimizing the system complexity we’ve maximized the benefit for WWF Switzerland’s projects.”
The first step in this process is the donation confirmation engine, which uses the Ethereum blockchain to confirm receipt of the donation(s) from the donor and issue a confirmation of donation at the end of the year for tax purposes, all while maintaining full GDPR-compliant privacy protection. The vision for this project goes much further, for example enabling donation targeting, micro-donations at points of sale, and aggregated cross-platform donation acknowledgement.
In real terms, this could allow donations to be made as micro-donations at points of sale – currently not efficient due to transaction cost – and at the end of the year have the full sum of the donations aggregated and acknowledged for tax purposes.
“Blockchain will affect many aspects of our life and work. Even though issues remain to be resolved, the technology has considerable potential to streamline processes in fundraising and administration, and to scale up our conservation impact. Hence, WWF is motivated to test real-life applications of blockchain in different areas of our work,”
said Thomas Vellacott, CEO of WWF Switzerland.
“We are currently running several initiatives worldwide to test the application of blockchain. WWF Switzerland works with other WWF offices on these initiatives. We will analyze the results and decide how to use blockchain going forward.”
Despite fears to the contrary, blockchain-based donation processes will not lead to unsustainable use of resources. By replacing paper, blockchain not only consumes power at a comparable or lesser rate (7,000-14,000kWh/kg for paper, 70kWh/transaction for Ethereum, with that consumption rate diminishing significantly as the verification mechanism in the Ethereum network is switched from a “proof of work” to a “proof of stake” mechanism by an upgrade to the Casper protocol), blockchain does not have any of the undesirable impacts of paper production such as deforestation and pollution of water and air.
WWF Demo Frontend:
The post Proxeus and WWF Switzerland Put Donation On The Blockchain appeared first on Fintech Schweiz Digital Finance News – FintechNewsCH.
Tron Price Key Highlights
- Tron price bounced off the area of interest marked in an earlier post.
- Price is now making its way up to the swing high and the Fib extension tool shows the next upside targets.
- Technical indicators also support the idea of more gains for Tron.
Tron price bounced off the resistance-turned-support region at the 0.04500 mark as expected and is aiming for new highs.
Technical Indicators Signals
The 100 SMA crossed above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. In other words, the climb is more likely to resume than to reverse. After all, Tron price formed and confirmed an inverse head and shoulders pattern to signal that an uptrend is underway.
Applying the Fibonacci extension tool reveals the next upside targets. Price has already moved past the 38.2% extension and is closing in on the 50% extension at 0.05076. Stronger selling pressure could take it up to the 61.8% extension at 0.05200 or the 78.6% extension near 0.05400. The full extension is located just past the 0.05600 level.
RSI is on the move up to show that there’s buying pressure left. This might be enough to keep bulls in control until Tron price reaches the next potential resistance levels before buyers book profits. Stochastic is also on the move up so Tron price might follow suit, but this oscillator is dipping into overbought territory.
Cryptocurrencies appear to be in a much better mood lately as they managed to shrug off news of Bithumb’s hack, compared to the price reaction to the hack on a smaller South Korean exchange earlier on.
Some say that this might be due to reports debunking the study that Tether was used to manipulate bitcoin price back in 2017, spurring hope that the probe by US regulators could yield the same results.
The post Tron (TRX) Price Watch: Correction Done, Aiming Higher appeared first on NewsBTC.
Bitcoin Price Key Highlights
- Bitcoin price has formed higher lows and slightly higher highs to create a rising wedge on its 1-hour chart.
- Price is bouncing off resistance and might be due for another test of support.
- Bitcoin price is also nearing the peak of the formation so a breakout might happen soon.
Bitcoin price might be gearing up for a break from its rising wedge pattern, but technical indicators are giving mixed signals.
Technical Indicators Signals
The 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. In other words, an upside break might be more likely to happen than a break below support.
If so, bitcoin price could be in for a steeper uptrend, possibly one that’s the same height as the wedge formation that spans $6,100 to $6,900. The 100 SMA also lines up with the bottom of the wedge to add to its strength as a floor.
However, RSI looks ready to turn lower as it nears overbought levels. This suggests that bullish momentum could fade soon as buyers start to feel exhausted, likely allowing sellers to take over. Stochastic already seems to be on its way down to signal that bearish pressure is starting to come into play.
Bitcoin price took a hit earlier in the week on news of Bithumb’s hack, but it looks like it’s dealing with the news pretty well. This follows an earlier hack on a smaller South Korean exchange wherein lesser-known altcoins were affected.
Cryptocurrencies still seem to be hopeful that the SEC could avoid regulating these as securities, particularly after a senior official said so last week. The speculation that Tether was used to manipulate bitcoin price also seems to have been debunked, which gives investors fresh hope that the probe being conducted by US regulators would produce more or less the same results. In that case, confidence in the industry’s security could be restored.
The post Bitcoin (BTC) Price Watch: Imminent Rising Wedge Breakout appeared first on NewsBTC.
- Bitcoin cash price found support near the $865 level and bounced back against the US Dollar.
- Yesterday’s highlighted short-term bullish trend line is intact with support at $880 on the hourly chart of the BCH/USD pair (data feed from Kraken).
- The pair is moving higher and it may soon make an attempt to break the $908 resistance level.
Bitcoin cash price found support above $850 and recovered against the US Dollar. BCH/USD is resuming uptrend and it could break the $900-910 resistance.
Bitcoin Cash Price Trend
After a correction below the $880 level, bitcoin cash price found support against the US Dollar. The price tested the $865 level where buyers appeared and prevented more losses. Moreover, the 61.8% Fib retracement level of the last leg from the $825 low to $925 swing high also acted as a support. A fresh upward wave was initiated and the price bounced back above the $880 resistance level.
During the upside, the price broke the 50% Fib retracement level of the last decline from the $926 high to $865 low. The current price action is positive and suggests more gains above the $900 level. An initial hurdle for buyers is around the $908-910 zone. Moreover, the 76.4% Fib retracement level of the last decline from the $926 high to $865 low at $911 may also stop upsides. Should there be an upside break above $911, the price could kick start more gains above the $920 level. On the downside, yesterday’s highlighted short-term bullish trend line is intact with support at $880 on the hourly chart of the BCH/USD pair.
Looking at the chart, the price is well supported above the $880 level, the trend line, and the 100 hourly simple moving average.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is currently in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is now well above the 50 level.
Major Support Level – $880
Major Resistance Level – $910
The post Bitcoin Cash Price Analysis: BCH/USD Resumes Uptrend appeared first on NewsBTC.
When it came to crypto, the focus was on retail investors – not only on protecting them but also on giving them a chance – during CB Insights’ event.
Please have patience.