Bitcoin’s value continues its decrease as we get closer to the year end, sending the leader cryptocurrency back to levels it was trading at, 16 months ago.
According to industry data and interviews with exchanges and businesses, the focus turns to the fact that bitcoin is in the process of transforming from a speculative financial instrument to a long term strategic investment opportunity, yet with debatable points of view.
Investors and company CEO’s are now referring to opportunities in the Crypto Industry as venture investing.
In more detail, we are now seeing larger financial institutions investing in startups and small, beginner firms believed to have long-term growth potential.
Yesterday it was publicized that Goldman Sachs Group Inc, JP Morgan Chase & Co, Citigroup Inc and Credit Suisse Group AG, all participated in a total investment of $17.5 million in AccessFintech.
This startup firm specializes in retailing technology for financial companies in an attempt, to resolve any business errors they could encounter.
Roy Saadon, founder and chief executive of AccessFintech, stated he was amazed by the fact that large banks are willing to work with each other and invest in small firms, in order to outsource some activities and gain the knowledge instead of building internally.
Of course, the risk of collaborating with the wrong people is always in play and so cautiousness and intense research may be vital.
On the other hand, Basecoin a firm that managed to raise a significant amount of $133 million from various well-known companies and investors, announced in the previous days it was cancelling all its projects and will return the remaining capital to all its investors.
Some investors related to Basecoin’s project include Google’s venture arm GV, billionaire hedge fund manager Stan Druckenmiller and former Federal Reserve Governor Kevin Warsh.
Its chief executive, Nader Al-Naji said they had some difficulties applying U.S. securities regulation to Basecoin’s projects.
Basecoin’s goal was the creation of a stable coin, but quite dissimilar to the known ones, in the industry at the moment.
Basecoin’s stablecoin projects were supposed to be built on a so-called algorithmic central bank.
The plan was scheduled to move even further as its blockchain based computer program was envisioned to issue bond tokens and share tokens backed by a dollar-pegged stablecoin.
Two positive outcomes in our view arise from Basecoin’s case.
First, the fact that the firm is ready to return the funds, is an indication of fair treatment towards its investors and sends the message that truthful people remain in the industry.
Second, issuers of digital currencies are now more careful since the U.S. Securities and Exchange Commission (SEC) warned back in July 2017, that cryptocurrencies could be considered securities, and if this is confirmed then it has the potential of changing the whole concept of Crypto Currencies and the way they are dealt with compliance wise and financially.
As a conclusion, we would like to refer to the value of the Crypto assets which is slowly diminishing.
We believe the Crypto industry is like a young child that has taken some steps forward but has fallen many times in the process.
We conclude that, 2018 was a learning year for the industry, due to the significant rise but also the subsequent fall of the value of the crypto assets, which has led to tremendous losses.
However, the general public still seems to be interested and investing in crypto assets, which provides some hope for future improvements.
During the past two days Bitcoin has been trading in a sideways manner between our 3295.99 (R1) resistance level and our 3193.31 (S1) support level.
If the digital currency is undertaken by a bullish momentum we could it breaking the 3295.99 (R1) resistance level, with the next stop being 3366.58 (R2) resistance barrier.
In the opposite direction, if the cryptocurrency is undertaken by a bearish momentum then we may see it drop below our 3193.31 (S1) Support level and land near the 3127.00 (S2) support barrier.
A drop even lower could mean a movement aiming the 3000 psychological threshold but in case the coin holds up, it could stabilize near our 3054.26 (S3) support barrier.