By: Stephanie Brown
A group of billionaires have recently taken an active interest in developing the Bitcoin marketplace and Bitcoin technology. They already invested close to $21 million in the blockchain technology called Blockstream. These billionaires previously worked closely with companies such as LinkedIn, Sun Microsystems and Yahoo.
Blockchain is trying to create a platform that could be used to develop applications, which could go beyond the crypto-currency. This group firmly believes that Bitcoin does provide users with transparency and reduces transaction costs by cutting out middlemen like registrars and trustees.
Additionally, there is a widespread belief that blockchain is “extremely difficult to corrupt”, which therefore makes it an efficient platform on which anything of value can be transacted. According to many, interest in the Bitcoin industry is widespread and is seeing more users from different locations taking active interest in learning more about the crypto-currency.
Contrary to popular belief, Bitcoin users are not trying to diverge from the traditional banking systems and adopt a new way of doing transactions. Many industry insiders believe that Bitcoin users will still continue using traditional currencies like the USD, Yuan or the Euro.
Furthermore, they additionally believe that banks will ultimately play a huge role in making Bitcoin a far-reaching product as traditional banks certainly outstrip the nascent Bitcoin industry. Many believe that the Bitcoin’s future and the banking industry are inter-twined as both would enable each other to grow and prosper. Banks, by adopting the digital currency would have a new product platform to offer and Bitcoin can use the banks’ global reach.
Technical Analysis
Bitcoin is continuing its downwards trend and is trading in a very narrow range between $315.60 and $416.92 and it is on the edge of 20-Day EMA of $377.50. Going forward, it will be interesting to see if it finds support at lower levels as buyers continue to stay away from the crypto-currency as of now.
Actionable Insight:
Sell Bitcoin below $374 for target of $366, $358 with a stop-loss of $378
