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The Image Of The Day, 3 Of August: Dailyhodl, Fortune, Businessinsider And Others

03 August 2018 20:26, UTC
Mariia Koshkina

We're presenting "the image of the day". Bitnewstoday.com chose only the freshest and most important news about the digital economy and virtual currencies. Only the most valuable stories from only the trusted sources. Each and every event from this list will change the world of the digital economy either way. The most important of today's stories in most indicative quotes below!

1. BITCOIN FUTURES AND MASSIVE LOSING (Bloomberg)

A Massive Losing Bet on Bitcoin Futures Has Investors Buzzing

The more than $400 million long position in Bitcoin futures was amassed on OKEx, a Hong Kong-based exchange that’s ranked No. 4 on list of the biggest crypto platforms.

While OKEx has moved to liquidate the position, it has so far been unable to cover the trader’s shortfall amid a down market for Bitcoin this week.

If the shortfall still exists at the 4 p.m. settlement time in Hong Kong on Friday and exceeds the size of the exchange’s insurance fund, futures traders who have unrealized profits on OKEx may be forced to absorb the losses.

2. COLLAPSE OF BITCOIN (CNBC)

If bitcoin doesn’t hold this key level, a "collapse" could be imminent 

Bitcoin investors may need to brace themselves for an even bigger drop in the cryptocurrency.

In the last week, bitcoin has fallen about 9 percent and returned to the mid-$7,000s. On Thursday, the cryptocurrency was trading at around $7,500, which, according to Robert Sluymer, head of technical strategy at Fundstrat, is a key level that needs to be held.

Sluymer refers specifically to an intraday chart of bitcoin, which shows the cryptocurrency has returned to a key support level it hit in June and again in mid-July. Not only that, but Sluymer also points out that the relative strength index (RSI) of bitcoin indicates it is now "very oversold," which may prove to be a buying opportunity for the cryptocurrency, but investors need to be careful.

"I think it's vulnerable to a collapse into that $6,000 range."- said Sluymer to CNBC.

3. BITCOIN AS MAIN CURRENCY (Bloomberg)

Bitcoin Must Hit $213,000 to Replace US Money Supply

Zurich-based investment bank and financial services company Union Bank of Switzerland (UBS) has said that the Bitcoin (BTC) price must hit nearly $213,000 to replace U.S. money supply.

The report of UBS says:  

"Our findings suggest that Bitcoin, in its current form, is too unstable and limited to become a viable means of payment for global transactions or a mainstream asset class." Also specialists from UBS mentions the high volatility of the cryptocurrency and high transaction fees, which complicate it from becoming a major world currency .

4. BLOCKCHAIN MARKETPLACE (Dailyhodl)

IBM Unveils Blockchain Marketplace for Banks

IBM is launching a new digital ledger technology (DLT) infrastructure for banks called LedgerConnect. The private permissioned network, in collaboration with CLS, which produces settlement, processing and data solutions, is based on the IBM Blockchain Platform and Hyperledger Fabric technology. LedgerConnect will be designed for regulated enterprises.

The DLT platform is designed to enable banks and financial institutions to share fintech solutions.IBM plans to make the platform widely available after meeting regulatory approval in the initial phase.

5. FINTECH CENTRE (Businessinsider)

Chinese billionaire named Bruno Wu is building out a nearly $300 million for a crypto innovation hub

Seven Stars Cloud, a company led by China-born media-mogul-turned-tech-entrepreneur billionaire Bruno Wu, announced plans in July to build out what is being dubbed Fintech Village, a hub for the firm and others to collaborate on robotics, machine-learning, and crypto-related initiatives, in Hartford, Connecticut.  

Bruno Wualso  looking to launch a fintech college at the Hartford campus. SSC is looking to seek out partnerships with nearby colleges to create an accredited entity specializing in fintech. It would offer courses in artificial intelligence and blockchain, according to documents.  

6. BLOCKCHAIN FORCES (Foreignpolicy)

Blockchain Strategy for American security

Blockchains could revolutionize sectors including financial services, health care, data storage, and corporate supply chain management. They also have important applications for national security.

One of the Defense Department’s chief concerns regarding new defense systems is that the components are manufactured all over the world, so it is possible that suppliers close to a foreign government could install undetectable backdoors for spying.

The blockchain’s accurate and detailed ledger could reduce these risks by tracking what each subcontractor supplies and ensuring that each component is traceable.

Blockchains could also securely manage the identification of contractors and government employees. With the blockchain, personal information gathered during a security screening could be verified, disaggregated, and encrypted, the inserted into a blockchain, after which the original data could be erased from all individual servers.

7. CRYPTOCURRENCY SHOPPING HAS BECOME CLOSER (Dailyhodl)

Bitcoin, Ethereum, Litecoin, Bitcoin Cash Reach Millions of Online Stores With New Coinbase Plugin

Coinbase has released a new plugin to give millions of websites the power to accept major cryptocurrencies including Bitcoin, Ethereum, Litecoin and Bitcoin Cash.

The plugin is designed to work with WooCommerce, which is an open-source platform that is currently integrated into more than three million WordPress websites, according to BuildWith.

The plugin was announced in a new blog post from Coinbase, and is already available on GitHub.

8. CREDIT CARD ALTERNATIVE (Fortune)

Are Crypto Credit Cards Next?

This morning the Intercontinental Exchange — the trading colossus that owns the New York Stock Exchange and other global marketplaces — announced that it is forming a new company called Bakkt. The new venture, which is expected to launch in November, will offer a federally regulated market for Bitcoin. With the creation of Bakkt, ICE aims to transform Bitcoin into a trusted global currency with broad usage.

To achieve that vision, ICE is partnering with heavyweights from the worlds of technology, consulting, and retail: Microsoft, Boston Consulting Group, and Starbucks. ICE did not immediately disclose the total investment of the investment partners, a group which also includes Fortress Investment Group, Eagle Seven, and Susquehanna International Group — or the ownership stakes.

Startup’s plans raise the prospect of an even more ambitious goal: Using Bitcoin to streamline and disrupt the world of retail payments by moving consumers from swiping credit cards to scanning their Bitcoin apps. The market opportunity is gigantic: Consumers worldwide are paying lofty credit card or online-shopping fees on $25 trillion a year in annual purchases.

9. CRASH OF BITCOIN (Businessinsider)

Bitcoin is never coming back

Despite headline-making plans to open a bitcoin trading desk earlier this year, Goldman Sachs still isn’t sold on the virtual currency.

In a midyear economic-outlook report, the bank’s investment strategy group says the price of bitcoin is likely to decline even further than the 45% it has in the first seven months of 2018.

"We expect further declines in the future given our view that these cryptocurrencies do not fulfill any of the three traditional roles of a currency: they are neither a medium of exchange, nor a unit of measurement, nor a store of value," — the team lead by chief investment officer Sharmin Mossavar-Rahamani said.