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Upstart crypto company Saga wants to issue a new global currency on the blockchain. Just don’t call it a stablecoin.

Saga’s SGA digital currency relies on an international reserve asset called Special Drawing Rights (SDR), which was introduced by the International Monetary Fund in 1969. This is a conventional basket of major world currencies — the US dollar, the euro, the British pound sterling, the Japanese yen, and the Chinese renminbi — that central banks around the world use to hedge against fluctuations in their own local currency. SGA borrows this model for a financial instrument and puts it on the blockchain.

These days, one SDR is worth about $1.40 USD, and SGA will be worth the same when it launches. But SGA’s value can go up or down depending on how many other people are using SGA. To buy this cryptocurrency is to cause Saga’s smart contracts to generate it from scratch. To sell it back is to burn the coins. So the monetary value of SGA can change, but the idea is that any change in price happens slowly and sustainably.

So SGA is not a stablecoin with a permanently fixed price. But you could fairly call it a “stable currency.”

“It’s increasingly clear that for a global economy, we need a global currency,” said Saga founder Ido Sadeh Man. “If we want to achieve this, we need to answer a few questions. Who controls it, how do you tame volatility, and is it legitimate?”

Saga treats its token holders as sovereign. Yes, Man started the business, but Saga uses an Ethereum-based governance model that makes it possible for holders to elect a board of directors or another monetary committee that ignores his wishes entirely.

Saga is ultimately an ERC-20 token system that also adheres to AML and KYC practices. While the thought of regulating some new global currency might seem silly, this compatibility should be quite appealing to policymakers. Man explained that Saga probably won’t achieve status as a means of exchange within a year or two of launch — why hold it if no one accepts it, and why accept it if no one has it? Instead he suggests SGA will find its first applications within hedging.

When asked about his currency playing a role in a world hypothetically free of geopolitical borders, Man said, “It’s obvious that nation-states can’t handle all our identities for all our lives, but I don’t believe that my generation will witness that, and probably not my children’s generation either.”

SGA launches on December 10th and will be available for trading on Liquid.

Cointelegraph By Dylan Love , 2019-12-05 03:00:00 ,

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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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