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The Red Cross, as you might well know, is one of the biggest global organizations that push humanitarian causes all over the world. The poorest nations of Asia, Africa, South America, and so on are in the focal point of the organization, greatly benefiting from its developmental projects and initiatives.

And now, more than ever, the Red Cross is capable of achieving so much more. In fact, with the help of modern technologies, the organization is promoting blockchain and cryptocurrencies in Africa, as well as some European countries. For the time being, let’s focus on Africa.

A battleground for resources

Africa has always been a battleground for the colonial countries and empires. The continent’s resources, be it geographical, mineral, or human, and their acquisition were in the interests of almost every conqueror – starting from Alexander the Great to Hitler and Stalin. As a result of this battle for African resources, the continent fell behind with the overall economic growth that became a universal pattern in the twentieth century.

But the world is increasingly getting more thoughtful and considerate of those problems, recognizing that others cannot go on with their happy lives while a significant part of the world is still suffering from the lack of the most basic things. And modern technology, being a product of this development in the other parts of the world, is creating incredible opportunities to lift those nations out of poverty.

Democratized resources

Blockchain is one of such technologies. It was created in 2008 and it promises to bring vast opportunities for everyone. Among security, anonymity, and overall convenience, one thing that makes blockchain so beneficial for the African nations is its democratized nature.

According to the estimates, almost 1.7 billion people in the world are unbanked, meaning they don’t have access to bank accounts and online payments. And it’s not surprising to know that the majority of the unbanked people reside in Africa. Maybe they’re too far from a bank, maybe they don’t have enough paperwork, or maybe they’re deemed “unsuitable” for the bank services – it doesn’t matter because the outcome is the same: as far as the financial world is concerned, they do not exist!

And blockchain is set to improve those conditions. Setting up a crypto account doesn’t require any comprehensive documentation or make you leave your home; just the internet-connected device and your ID picture will suffice. And once it’s done, you’re already eligible for crypto remittances and transactions anytime and anywhere in the world.

Kenya and Ethiopia among the pioneers

And that’s the technology the Red Cross is trying to push in Africa. For the time being, they’re testing this feature in Kenya which can already be deemed as a distinguished financial hub on the continent. Starting from the Kenyan Forex trading brokers all the way to the local entrepreneurs, the Kenyan economy is making some tangible progress, even reaching a 6.3% growth rate in 2018.

According to Reuters’ report, the organization is already distributing $1 billion per year for various purposes such as disaster aid or encouraging local economies. This budget is supplied either via cash or specific vouchers which may have some shortcomings that we’ve mentioned above.

To alleviate those shortcomings and make aid transactions more stable and convenient, the Red Cross has been testing its blockchain scheme in Kenya, as well as Ethiopia. And the results have been overwhelming: not only did the aid transfers become more stable but the overall economy started to come to life again. 

Blockchain boosting the local economies

Crypto-wallets and payments boosted trade in the poorest communities. For the first time, people became eligible for credit points created from aid remittances, work, or even sales that they made. And those points could then be spent via a smartphone app connected to the blockchain system.

There are several major points that need further specifying here: with blockchain-powered wallets and payments, the Africans will have a global reach over various retail websites such as eBay, Amazon, etc. as well as investment capabilities abroad or in their countries. 

On top of that, the humanitarian aid that they receive from the Red Cross will be more specific and targeted. The transactions will be instantaneous, secure, and hack-proof. This can benefit both private citizens and entrepreneurs alike.

The banks aren’t happy about blockchain

However, this effort has met some backlash in Kenya. As one can imagine, there are major banks and other financial institutions that want and need to have a monopoly over the country’s financial environment. And before blockchain, they did.

But now, the Red Cross is undermining their posture by introducing a completely new form of payment. The blockchain-based credits and transactions have already proven to reduce demand for similar services provided by those banks. 

As noted above, the project is tested in some parts of Kenya and Ethiopia for the time being. But the organization is planning to expand its blockchain coverage over those countries as a whole, as well as other African nations such as Cameroon, Zimbabwe, Malawi, etc. A targeted reach is 320,000 users over the next two years.

And what’s more, this is a pretty affordable project to run for the organization. Notwithstanding the initial $1 million to fund this whole start-up, the Red Cross can sufficiently run the project for just $40,000 per year.

Giorgi Mikhelidze , 2019-12-03 22:00:00 ,

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.

While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock

Nick Chong , 2019-11-10 12:00:38

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