Basis is a new startup that is building a cryptocurrency which will have the name of the company. The company aims to launch a coin that will be more stable than Bitcoin, as well as, a coin that will replace money. It is remarkable that some of the most respected investors of Silicon Valley closed a fundraising deal with Basis. According to Basis, the new crypto will be more stable, as well as, it will maintain a more predictable price value comparing to other crypto assets, such as the Bitcoin.
Creating a digital coin which will not have the huge price swings of the other cryptos is the essential component of Basis’ vision. Additionally, the company aims at earning investors’ trust so that to promote further the digital coin investing.
Crypto bears criticized the digital coins for volatility and made them skeptical of cryptocurrency investing due to cryptos unpredictable volatility which may lead to significant losses.
The major sentiment about cryptos is that investors are keen on cryptos, but stability is a parameter that should be taken into account. One year ago, Druckenmiller, during his interview on CNBC, stated that he did not have any Bitcoin and distrusted the idea of using Bitcoin as a medium of exchange due to its unexpected volatility. It could be argued that if the cryptos were more stable and less volatile, then there would be a great opportunity for people to embrace the idea of replacing the real money.
Fast execution and the middleman cut off are two factors that could urge people to embrace the blockchain concept. Probably, in the future, a country could build different cryptos for different kinds of transactions. Nevertheless, this depends on the development of a monitoring framework which will protect investors and consumers.
Technical Analysis on BTCUSD
Based on the Ichimoku system, the price seems to move up, provided that it is taken into account that price appears above the cloud. The lines Tekan Sen and Kijun Sen, and the Chikou span seem to be above the price. As the cloud appears thick, we could consider waiting for the price to bounce on the Kijun Sen before start looking for bullish signals. Provided that the price moves below the lines, we could consider looking for bear opportunities potentially down to the cloud upper the Senkou Span line.
About the Author:
Marios Athinodorou is TeleTrade’s market analyst and commentator. Apart from being an experienced trader, Marios is an advanced technical analyst and is interested in trading psychology. He has 7 years of trading expertise in Forex and CFDs, providing insights to share with all kinds of traders, from beginners to experts. Among others, Marios is delivering weekly trading webinars. Sign up for upcoming webinars, here.
Disclaimer: Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and education purposes. Personal Opinion of the Author does not represent and should not be construed as a statement or an investment advice made by TeleTrade. All Indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results.
Risk Warning: Investment services are provided by TeleTrade-DJ International Consulting Ltd, a Cyprus Investment Firm under reg. number HE272810 operating in accordance with MiFID, under license 158/11 by the Cyprus Securities and Exchange Commission. Trading in leveraged derivative financial instruments carries a high level of risk and may not be suitable for all investors. Past performance is not a reliable indicator of future results. Indiscriminate reliance on informational or historical materials may lead to losses.