Bitcoin prices stabilize, political bigwigs see the benefits of blockchain

In recent years, blockchain has become a hot concept in the global Internet world. Top investment banks such as Goldman Sachs and Citigroup have stepped up their efforts in blockchain layout, and senior government officials have also made it clear that they should attach importance to and support the development of blockchain technology. The market price of Bitcoin has also received corresponding attention.

Image courtesy of www.okcoin.cn

According to data from OKCoin, a domestic bitcoin trading platform, in the long run, the bitcoin market price has entered an upward channel since the end of 2015. MA has shown a bullish trend again after two years, and MACD is surfing upward above the zero axis, with a significant increase in trading volume. This shows that the bottom support of the market is constantly rising, more and more funds are entering the bitcoin market, and the bulls are dominating the market trend.
 

From the daily chart, the 30-day moving average is still rising, the 14-day moving average is pulling back and intersecting with the 30-day moving average, and the price of Bitcoin has fallen back to this point, indicating that the 30-day moving average is a strong support line. The stochastic indicator has gone out of the oversold area and started to surge upward. The strength index is still in the oversold area, slowly moving upward, indicating that buying power is actively active.

OKCoin founder and CEO Mingxing Xu believes that the rise in Bitcoin prices is because the blockchain technology behind it has attracted more attention from people around the world.

What is the blockchain that all the top bosses are talking about?

According to foreign media reports, US presidential candidate Hillary Clinton said during the election campaign that blockchain will lead a new generation of technological revolution and that the US government should support the development of blockchain technology and encourage its use in the government public domain.

Hillary Clinton said during the election campaign:

“We must place innovators in an important position because they will lead the world in a new generation of technological revolution in the future. These technologies include driverless cars, machine learning, blockchain technology, etc. We should protect their innovative ideas.”

It is worth mentioning that in April last year, Republican presidential candidate Rand Paul announced that he would accept Bitcoin as election funds. Later, former Texas governor and presidential candidate Rick Perry followed suit. Blockchain technology has attracted the attention of senior US officials, intending to once again lead the world's new generation of technological revolution.

According to Russian CNEWS, Russia's Internet Development Research Institute submitted a report containing a blockchain technology development roadmap to Russian President Vladimir Putin at the end of 2015. The report pointed out the expansion roadmap of digital currency and distributed ledger technology, provided a legal framework development plan for the technology by 2025, and pointed out that the use of blockchain technology should be legalized by 2017. Putin said that it is possible to use digital currency as a unit of account.

The Economist explained that blockchain is actually a trust mechanism. It is a distributed ledger that cannot be tampered with by the public. The records in this ledger cannot be tampered with by a single party and can be traced. Such a system ensures that it is used openly, safely and reliably. These features enable blockchain technology to make up for the shortcomings of traditional financial institutions, improve operational efficiency, reduce operating costs, and prevent information tampering and forgery. Therefore, many financial institutions are studying the application of blockchain technology in the financial market. Duan Xinxing revealed that the company he works for, OKCoin, is developing a global financial network OKLink using blockchain technology.

Like other new things, blockchain technology also has its shortcomings. The U.S. Financial Stability Oversight Council recently released a report pointing out that although the distributed ledger system is designed to prevent a single party from reporting errors or fraud, the system is vulnerable to fraud by collusion among important participants in the system. Blockchain technology is currently in the theoretical exploration stage, and the risks in practical applications are not widely recognized and the Bitcoin block size has not yet increased.

As blockchain technology is being pursued by people from all walks of life around the world and attracting more and more attention and exploration, the market price of Bitcoin is also responding.

In recent years, blockchain technology has received more and more attention and has been increasingly recognized by all sectors of society, leading to a lot of funds entering the blockchain technology research field and the Bitcoin investment market. In the long run, this will play an important role in the development of blockchain and the continuous rise in Bitcoin prices.