Connect with us
Blockchain technology Blockchain technology

How blockchain will change the world

Blockchain is still in its infancy, and even though many current projects are implementing the technology, they are still in the early stages of development. Cryptocurrencies like bitcoin currently do not have many productive applications and yet, development is remarkable and every day startups come to market with new and promising ideas.

Published

on

Cryptocurrencies, such as bitcoin, have been moving into the mainstream media. With this recent trend also come warnings about making investments in this space. Reports of hacker attacks on stock exchanges, exploding costs for graphic cards, as well as energy costs due to mining are spreading through the media. However, what many do not take into consideration is what is really going on behind it all – a revolution that will change our world.

Bitcoin – the nostalgic coin for collectors

When paying close attention to discussions in the media or during conferences, the subject of bitcoin – or something connected to it – is everywhere. For many, bitcoin automatically equals blockchain. To be perfectly honest, I also use the term “bitcoin“ if I am attempting to explain the blockchain technique to someone. This is understandable, since bitcoin is the first solution based on blockchain and is therefore currently the largest cryptocurrency. What bothers me is missing the focus on the important issues, the focus on blockchain as a whole. The blockchain technique has more to offer than just bitcoin. In my opinion, bitcoin will one day become nothing more than an a nostalgic coin collectors cling to because it reminds them of how bitcoin got the ball rolling and started the blockchain revolution.

What the Gold Rush, Internet, and blockchain have in common

In the beginning, nobody paid close attention to San Francisco, a small and unassuming hilly city filled with fog. But when the gold rush started in 1848, history was made in San Francisco and its face was changed forever. A similar scenario took place in 1851, when the gold rush began in Australia. The continent was mainly a red desert, and suddenly became home to thousands of immigrants and companies who wanted to participate in the gold rush boom. The same occurred in 1995 with the arrival of the Internet. Thousands of startups were created around this time and achieved their gold rush peak via the dotcom bubble. This is being repeated with the blockchain technique, where there is currently a gold rush movement for companies based on blockchain that are popping up like mushrooms due to their financing via ICOs (Initial Coin Offerings).

The parallels between the real world, the Internet world, and the blockchain world

With the arrival of the Internet, companies started adapting the real world to the Internet world: turning supermarkets into online shops, and insurance reps into insurance comparison portals. This transfer also takes place in the blockchain world, where things that work in the real world or in the Internet world are now adapted into the blockchain world. A good example here would be that physical money was replaced by credit cards or payment solutions, like PayPal, in the Internet world. Now, we see these being replaced by cryptocurrencies in the blockchain world. There are already decentralized autonomous organizations (DAOs) that exist in the blockchain and function without people and are an adaptation of classic organizations.

Can blockchain revolutionize the world the way the Internet did?

Many experts consider the Internet as one of the largest innovations since the invention of print. A technique with enormous impact on our daily lives that changed the way we process information, communicate and – last but not least – how we live. The development of Web 2.0 made way for Internet giants like  Facebook, YouTube, and others that created a digital exchange revolution. However, this revolution has its price, namely our personal data which is collected by vendors and suppliers who process this information as big data.

The blockchain technology, on the other hand, is a decentralization revolution where data is stored in transparent blocks and distributed networks which, in some cases, are completely anonymous instead of being processed centrally via the Internet. Blockchain, therefore, solves fundamental issues. Banks may be eliminated and transactions centrally controlled, meaning increased power. Another feature of the blockchain is Smart Contracts. These are contracts that are bound to certain transactions by code, meaning these transaction can be controlled according to certain rules and if certain events take place, predetermined actions will follow. For instance, if a customer does not make his or her car payment on time, access to their vehicle may be automatically denied via a Smart Contract. This eliminates a central agent, and the source of human error can be ruled out. Blockchain hereby shifts the balance of power – central positions lose power and, in turn, create trust.

Blockchain = Future?

Blockchain is still in its infancy, and even though many current projects are implementing the technology, they are still in the early stages of development. Cryptocurrencies like bitcoin currently do not have many productive applications and yet, development is remarkable and every day startups come to market with new and promising ideas. It will, however, take some time until the blockchain technique is as functional as the Internet. When the Internet first got started, one had to be a technical expert just to be able to get into the Internet via a modem. These days, we no longer concern ourselves with this, as technology has enabled us to get into the Internet via a WLAN password or via our data tariffs on our smartphones. It is also no longer necessary to know how the Internet itself functions. A similar development is in store for us with blockchain. It is currently a subject for technical experts, but with continuing development, one will simply use this technique at some point in time without really having to understand it. Whether blockchain has a future will be decided by the advancement of this technique and the  government regulations surrounding its legal framework and international standards. If we are able to simplify the technology for everyday use and the government doesn’t put a stop to blockchain, I am convinced that the blockchain will change the world and have a huge impact on everyday life – much like the Internet.

Martin Wos, Co-Founder, Co-CEO and CVO of Block Stocks

The views expressed are of the author.

Cointelligence invites global Blockchain and crypto professionals to share their opinions and expertise with our readers. If you would like to share your point of view, please contact us at info@Cointelligence.com.

Featured Image Credit: dencg / Shutterstock.

Ethereum price weekly analysis – heightened bullish momentum

Tamer SameehApr 23, 2018

 

Ethereum price continued rising during last week’s trading sessions gaining around 17% in market value. The price of ether increased from an opening price of $536 to $625 at the end of the week. The market’s bulls managed to breach an important resistance level around $545.17. At the time of writing of this analysis, ethereum is trading at a price of $637. As the market continues moving along the uptrend line, that has been evident since April 7th, the bulls won’t face significant resistance except around $713.24.

How can we expect ethereum price to behave during the upcoming week?

Williams Alligator’s mouth is “open and eating” on the 1 day ETHUSD chart:

Let’s examine the 1 day ETHUSD from Bitfinex, while plotting the 100 period SMA, the 200 period SMA, and the Williams Alligator indicator, as shown on the below chart. We will also plot Fibonacci retracements that extend between the high recorded on January 13th, 2018 ($1424.30) and the low recorded on October 23rd, 2017 ($273.50). We can note the following:

  • During last week’s trading sessions, the market’s bulls managed to breach a crucial resistance level around $545.17, which corresponds to the 76.4% Fibonacci retracement. As such, the bulls won’t face any significant resistance on the upside except around the 61.8% Fibonacci retracement  ($713.24).

 

  • Ethereum price is still moving along the upwards trend line (blue trend line on the chart) that has been evident since April 7th. Higher highs have been recorded during most of the sessions. The rate of rise increased even more when a candlestick touched the trend line on April 17th.

 

  • Ethereum price rose above the 100 period SMA during last week’s trading sessions, which reflects an increase in the bullish momentum. The 100 period SMA is also above the 200 period SMA which is another sign reflecting the bullish sentiment of the market. As such, with this increase in the bullish momentum, chances are high that we can see the price of ether rise to test the resistance around $713.24 during the upcoming week.

 

  • The heightened bullish sentiment of the market during last week’s trading sessions, is also evidenced by the alignment of the SMAs of Williams Alligator. Now, the red SMA (jaw) is between the green SMA (lips) from below, and the blue SMA (jaw) from above. The alligator’s mouth is now open and eating in the bullish direction.

 

  • A “three white soldier” candlestick pattern was also formed during last week. This is also another significant bullish signal. It represents a good chance for traders to enter long, as usually the bullish momentum increases after formation of this candlestick pattern.

Green (bullish) Ichimoku Cloud on the 4 hour ETHUSD chart:

Now, let’s take a look at the 4 hour ETHUSD chart from Bitfinex, while plotting the 50 period SMA, the MACD indicator, and the Ichimoku Cloud, as shown on the below chart. We will also keep the Fibonacci retracements we plotted above. We can note the following:

  • Ethereum price is now above the 50 period SMA. Note that the rate of rise increased after candlesticks soared above this key SMA.

 

  • The Ichimoku Cloud is now greenish (bullish) and ethereum price has soared above the cloud. Also, candlesticks have risen above the cloud’s Base Line (red line), which was followed by an increase in the rate of rise of the price of ether. The Conversion Line (blue line) has risen above the Base Line (red line). The Leading Span A (green line) of the cloud represents a support level in the future (after 26 candlesticks). As such, $600 will be a support level that will prevent price drop during the upcoming week.

 

  • The MACD is also bullish, as the blue MACD line is above the red signal line. The value of MACD is in the positive territory now.

 

  • The most logical scenario for the upcoming week is for ethereum price to continue rising towards the resistance around $713.24.

Conclusion:

The bullish wave grew stronger during last week’s trading sessions taking ethereum price above $600. As per our technical analysis, the price of ether will most probably continue rising to test the resistance around $713.24 during the upcoming week.

Charts from Bitfinex, hosted on Tradingview.com

 

Keep Reading

Bitcoin price weekly analysis – All the way up to $9,800

Tamer SameehApr 22, 2018

Bitcoin price continued on soaring along April’s new bullish trend to score a 10% rise in value during last week’s trading sessions. Bitcoin price started the week at around $8,079, rising all the way to around $8,800, at the time of writing of this analysis. The BTCUSD pair has been recording higher highs during most of the 4 hour trading sessions, and a new uptrend line is now obvious on the 4 hour chart. The market is now is about to test an important resistance level around $8,866. If the market’s bulls can breach this resistance level, chances are high that we can see bitcoin price rise towards $9,800 during the upcoming week.

So, how will the BTCUSD pair behave during the upcoming week?

“Golden cross” apparent on the 4 hour BTCUSD chart:

Let’s examine the 4 hour BTCUSD chart from Bitfinex, while plotting the 50 period SMA (blue curve), the 100 period SMA (red curve), and the Ichimoku Cloud, as shown on the below chart. We will also extend Fibonacci retracements that extend between the price low recorded on October 10th, 2017 ($4,715) and the price high scored on January 20th, 2018 ($13,017).We can note the following:

  • An uptrend line is now evident on the chart since April 12th (upwards sloping bluish trend line). Higher highs have been recorded during most of last week’s trading sessions. Bitcoin price has been steadily rising away from the 61.8% Fibonacci retracement ($7,886.40), aiming at the $8,866 price level that corresponds to the 50% Fibonacci retracement (horizontal orange line on the above chart).

 

  • During last week, bitcoin price rose above the 50 period SMA, and the 100 period SMA, which reflects that the bullish wave is getting stronger. Moreover, the 50 period SMA is currently crossing above the 100 period SMA. This is usually referred to as a “golden cross” and is another signal pointing to a strengthening upwards trend.

 

  • The Ichimoku Cloud is conveying four bullish signals. The cloud is now greenish (bullish). Bitcoin price is currently above the cloud. Also, candlesticks are currently above the Base Line (red line). The Conversion Line (blue line) has crossed above the Base Line (red line). As the Ichimoku Cloud is shifted 26 periods into the future, we can expect the cloud’s Leading Span A line (green line) to act as a support level during the upcoming week. As such, we can expect the $8,600 price level to act as a support level that will somehow prevent further price drop during the upcoming week.

New uptrend line obvious on the 1 day BTCUSD chart:

Now, let’s examine the 1 day BTCUSD chart from Bitfinex, while plotting the 100 period SMA (green curve), the 200 period SMA (red curve), and the Williams Alligator’s SMAs, as shown on the below chart. We will also keep the Fibonacci retracements we plotted above. We can note the following:

  •  A new upwards trend line is now also evident on the 1 day chart since April 12th. Four successive bullish candlesticks, with higher highs recorded, have been formed during the past week, as bitcoin price is heading towards the resistance around $8,866.

 

  • The 100 period SMA is now above the 200 period SMA. Also, candlesticks have just soared above the 100 period SMA. This reflects the current bullish sentiment of the market.

 

  • The Williams Alligator’s SMAs are now exhibiting a bullish alignment. We can say that the alligator’s mouth is “open and eating” in the bullish direction.

 

  • From the upside, the resistance level is around $9,845.60 (38.2% Fibonacci retracement). From the downside, the support level is around $8,600 (the Leading Span A line of Ichimoku’s Cloud on the 4 hour chart). The most logical scenario for the upcoming week is for bitcoin price to continue rising towards $9,845.60. Downwards price correction attempts will be halted near $8,600, which will reverse any downwards price movements.

Conclusion:

Bitcoin price gained around 10% during last week’s trading sessions, reaching around $8,800 early during Sunday. As per our technical analysis, bitcoin price will most probably breach the resistance around $8,866 and continue rising towards $9,845.60 during the upcoming week.

Charts from Bitfinex, hosted on Tradingview.com

Keep Reading

Bitcoin price weekly analysis – Locking up the bears

Tamer SameehApr 16, 2018

Last week, bitcoin price began recovering, soaring from around $7,128 to $8,303, to record a rise of around 16.5%. The recovery journey started after bouncing off an important support level near $6,674.30. During most of last week’s trading sessions, bitcoin price has been recording higher highs on the 4 hour BTCUSD charts. Even though a downwards price correction attempt began early this Monday, chances are high that bitcoin price will continues rising towards an important resistance level around $8,866 during the upcoming week, especially that a new upwards trend has become obvious on the 4 hour charts.

How far can we expect bitcoin price to go this week?

New upwards trend evident on the 4 hour BTCUSD chart:

Let’s examine the 4 hour BTCUSD chart from Bitfinex, while plotting the Ichimoku Cloud and the Bollinger Bands indicator, as shown on the below chart. We will also extend Fibonacci retracements spanning between the price low recorded on October 10th, 2017 ($4,715) and the price high recorded on January 20th, 2018 ($13,017).We can note the following:

  • After bouncing off the support level around the 76.4% Fibonacci retracement ($6,674.30) on April 9th, a new bullish wave began pushing bitcoin price to higher levels during the previous week. The new upwards trend started after a “bullish engulfing” candlestick pattern had been formed.

 

  • Another bullish engulfing candlestick pattern was formed on April 12th, with a bullish candlestick that has a considerably long body, as shown on the above chart. This candlestick reversal signal confirmed the current bullish wave even more.  After this candlestick pattern had been formed, the market’s bulls managed to break through the resistance level around the 61.8% Fibonacci retracement ($7,886.40).

 

  • A new upwards trend line is now evident on the chart (upwards sloping bluish trend line on the chart). The upper Bollinger band has been acting as an upwards limit that ignites downwards correction attempts since the upwards trend line has been evident. A brief correction attempt occurred on April 13th. Another downwards correction attempt began on April 15th and is currently still active, yet it is expected to stop once candlesticks start touching the lower Bollinger band. The 61.8% Fib. retracement ($7,886.40) will act as a support level that will prevent further drop.

 

  • The Ichimoku Cloud is currently greenish (bullish). Bitcoin price is currently well above the cloud. Furthermore, candlesticks have moved above the Base Line (red line), and the Conversion Line (blue line) has moved above the Base Line. All these signs from the Ichimoku Cloud confirm the continuation of the bullish wave that has started during last week’s trading sessions.

Williams Alligator ready to open its mouth on the 1 day BTCUSD chart:

Now, let’s examine the 1 day BTCUSD chart from Bitfinex, while plotting the Williams Alligator indicator, and the MACD indicator as shown on the below chart. We will also keep the Fibonacci retracements we plotted above. We can note the following:

  • The bullish engulfing candlestick pattern on April 7th served as a reversal signal that marked the start of the new bullish wave.

 

  • The Williams Alligator’s SMAs are realigning and will exhibit a bullish signal shortly. Within less than 24 hours, we can expect the Williams Alligator’s mouth to open its mouth and start eating.

 

  • The MACD indicator is sloping in an upwards direction and is about to enter the positive territory. The MACD blue line has crossed above the red signal line. Hence, the MACD is bullish.

 

  • The most logical scenario is to see the current downwards price correction attempt to stop around $7,886.40. Afterwards, we can expect bitcoin price to continue rising towards $8,866 (50% Fibonacci retracement) during the upcoming week.

 

Conclusion:

A new bullish wave has started during last week’s trading sessions, igniting a rise of around 16.5% in bitcoin price. As per our technical analysis, bitcoin price will most probably continue rising towards $8,866 during the upcoming week.

Charts from Bitfinex, hosted on Tradingview.com

Keep Reading

Trending