The Leading Cryptocurrency Stories for 6th August 2018

The Leading Cryptocurrency Stories for 6th August 2018
August 6, 2018

Despite great positive development in the cryptocurrency market, which we discuss below, cryptocurrencies have once again fallen into the red. As Vitalik Buterin (creator of Ethereum) rightly said: mass adoption is the only way that can propel the price of cryptos. Whilst the launch of Bitcoin ETFs is a good thing, the crypto industry shouldn’t spend too much time pondering on it. Let us look at the major stories that have occupied headlines over the past few days.

Coinbase, which received an e-money license from the UK’s Financial Conduct Authority (FCA) and banking support from Barclays, has announced that it has enabled Pound deposits to UK customers. Before the announcement of this facility, it took several days for UK clients of Coinbase to purchase crypto, having to convert pounds to euros beforehand. Furthermore, Coinbase has started supporting the ‘Faster Payment System’ – an initiative to decrease payment times between bank clients from three working days to typically a few seconds.

Boerse Stuttgart, Germany’s second-largest stock exchange, is building an ICO platform. The platform is part of its larger plan to create an “end-to-end infrastructure” for cryptocurrencies. The ICO platform will enable token sales in a standardised environment characterised by transparency. The platform will also facilitate trading of cryptocurrencies. Furthermore, the stock exchange is also planning to offer safe custody solutions.

The crypto-community often claims that Bitcoin has the capability to replace the greenback. UBS conducted a study to determine the possibility of such a scenario.  The investment banking giant has concluded that Bitcoin will be able to replace the US currency only if its value reaches a price of about $213,000. The report also raises doubt about Bitcoin’s ability to hit a valuation of $1 million. UBS states that Bitcoin must resolve the issue of scalability to be considered as a competitor for the US dollar.

In the past year, Walmart has filed a number of applications for patents based on blockchain technology. This includes systems for package delivery, digital market place and medical record storage systems. Recently the company has filed another blockchain patent application titled ‘Managing Smart Applications Using Blockchain Technology.” The patent describes a system to manage smart appliances, including a platform for receiving drone-delivered packages and a smart home. The system uses a blockchain server network to support an IoT ecosystem. A combination of public and private keys is used to securely encrypt transaction data.

Finally, as mentioned in the first paragraph, the big news of the week is that coffee chain Starbucks alongside tech giant Microsoft and operator of six exchanges – the Intercontinental Exchange – are working to establish the largest, fully regulated cryptocurrency exchange named Bakkt. The platform is planned to be launched in November. It will also provide an extremely secure custody service for institutional investors. Starbucks, which is already a leader in promoting digital payments, will encourage its millions of clients to pay using cryptocurrency. Ultimately, the trio is planning to replace the credit card system with smart phone payment with Bitcoin. 

 

Bitcoin Cash

Exactly a year ago, Bitcoin (BTC) was subject to a hard fork resulting in the creation of Bitcoin Cash (BCH). The launch became a controversial issue, primarily because some Bitcoin community members had started working on SegWit, which came into effect early this January. This lead to a steep decline in transaction costs. However, another group of developers went ahead and implemented the hard fork, resulting in the creation of Bitcoin Cash. Notably, the block size was increased from 1MB to 8MB.

On the first anniversary, Bitcoin Cash (BCH) saw a transaction volume of 687,000 coins, almost 197,000 transactions more than the record 490, 000 transactions did by Bitcoin in December 2017. Read more here. 

 

Our Forex Trading Plan

Ripple. Ripple, which is facing three lawsuits from investors, is our choice of asset to trade in the Forex market, as the crypto is moving along a clear descending trend line. Furthermore, the Williams percentage range indicator is in the bearish zone. Therefore, a deeper decline is anticipated.

We wish to trade the probable downtrend by going short near 0.42, with a stop loss order above 0.46. After opening the position, we would like to place an order near 0.30 to book profit.

Ripple - Technical Analysis - 6th August 2018

 

Our Binary Options Trading Plan

Dash. Private focused cryptocurrency Dash has turned extremely weak in the chart. The cryptocurrency is moving along the descending channel as shown in the image below. Furthermore, the MACD histogram is extending in the negative zone. Therefore, we are expecting the DASHUSD pair to decline further.

To gain from the downtrend, we are planning to invest in a put option offered by a binary broker. The pre-conditions for investing are that the contract should be valid for a period of one week, and the DASHUSD pair should be trading near $205 in major cryptocurrency exchanges.

Dash - Technical Analysis - 6th August 2018

Disclaimer: The trading analysis offered here is our opinion. It is not provided as trading advice, merely an indication of our trading plan. We cannot guarantee success and we encourage traders to incorporate a strong money management strategy to limit losses. Please use this article as part of your own research before formulating strategies prior to trading.

Ian Maguire

Ian Maguire

Ian is our resident contributor to the latest going ons in the cryptomarket, keeping up to date with the latest icos and coins


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