The ascent up the steep, Everest-like summit of the price of bitcoin are still being scaled, with prices breaking new highs (yet again) and continuing its rocky climb towards $10,000. In this edition, we provide a little price analysis for you, go over another factor that may bring the price of BTC down, and talk about a barrier-breaking ICO that will leave you world-less.
Price Rise Caused by Zimbabwe?
Bitcoin reached yet another high, surpassing $8100 in some markets. The testing of the $8000 mark was met by a slow lower, toughing it out at about $7970 at the time of this writing. This latest surge in price was thought to largely be due to a speech given by Zimbabwean Robert Mugabe, who announced that he would retain a 30+ year presidency over his long-failing economy, causing the Zimbabwean dollar to fall to a level statistically equivalent of zero. Price action in bitcoin seems to be driven largely on high volume, and of recent, falling on low volume. This suggestion potentially even larger price gains for bitcoin to come, thought we don’t claim to hold a magic eight-ball in our hands.
Though we heavily covered many rather concerning issues in way in which the price of bitcoin could drop rapidly, there still remains signals among top money managers in Wall Street basically saying they had no interesting in buying or dealing with cryptocurrency whatsoever, which generally seems to come from a fear of compliance with federal regulatory bodies and overcoming beauracratic hurdles. Other American financial institutions are now labeling BTC as a “bubbly wager.” The open-soucre nature of bitcoin leaves a fear of uncertainly and rather inability for world governments to control it without strictly controlling or monitoring the IP addresses of their own citizens as well, which might not go over so well in full-democratized countries.
Official Warning About ICOs Issued in the U.S.
More specific news was released just days ago about how a U.S.-based exchange, the Chicago Mercantile Exchange’s plan to follow suit in the wake of Switzerland’s recent decision to create a bitcoin future trade. Much like our often-discussed bitcoin ETF scenarios, and as mentioned in our last new edition, giving somebody the option of buying or selling futures of any commodity (in this case, bitcoin), meaning you are basically betting whether to price of something will go up or down. If it goes up, you can sell your futures contracts at a profit. If it goes down, you must sell your contracts at a loss. Why is this bad for bitcoin? It gives unfettered access to would-be “short sellers,” though per usual, we can’t if this is necessarily a good or bad idea.
In the realm of successful IPO’s to close recently, the cryptocurrency-based payment from Uquid raised over $17.8 million in one week’s time to finish working on their debit card program, which has already been in use for quite some time. The company aims to make a coin-based debit card that can be used at ATMS all around the world, and accepts a wide variety popular coins, which you can then load into wallet and become interchangeable for just about any world currency. The ambitious plan is a good step towards the integration of cryptocurrency into situations it is not usually found – aka – major ATMs.
Another regulatory body representing millions of people over a vast amount of space, the EU, also announced a sharp crackdown on crypto-currency related business in countries considered to be part that territory, especially as they related to ICOs. The few guidelines set forth by the European Securities and Markets Authority (ESMA) are thought to be heavily inspired by New York and much of America’s decisions to warn those who may be attempting to use cryptocurrency for illicit means.
Also in the News
Ron Paul Shilling for Bitcoin? – It looks like if you happen to stay up late at night, and watch the right channels he is! We see it as more proof that Satoshi was quite possibly a libertarian.
So, what ever happened to Bitcoin Gold (BTG)… Well, not much according the serious investor money, anyway, who happened to lose millions in the bitcoin fork experiment. Though saddled with good intentions, BTG so far proved to be just another flop, unlikely to claw its way back up into the successes, after falling 7-fold after its initial trading period on October 23rd. Though off to a bumpy start, not all major sources are calling it a failure, noting trading volume of the coin has been picking up and that all might not be over and done with, for BTG holders.
In a less-and-less witnessed idea of originality within the IPO-sphere, YDreams Global, a gaming hardware company that has a large amount aspirations when it comes to reshaping the VR technology landscape, recently named the hiring of an ex-media technology expert from Disney, who aims to make use of Ethereum-based technology to improve virtual reality, augmented reality, and the experience of gaming in general. Stated in the press release:
(We are) advancing Ethereum blockchain use-cases in the M&E vertical that leverage business process automation and cryptocurrency (premium bitcoin) rollouts to allow for development of new product categories in the media & online gaming space.
While the idea sounds transformative within the gaming industry, much like any other ICO, we’ll have to wait to see how this one plays out a little first.