Blockchain Bundesverband: German government relies on Blockchain

Yesterday we published our assessment of the results of the coalition negotiations for the Blockchain and Crypto Currencies block of topics. The Blockchain Bundesverband also commented on the results yesterday and issued the following press release:

Berlin – in the current coalition agreement between CDU/CSU and SPD the Distributed Ledger Technology plays an important role, but there is still more demand. Basically, however, the document emphasizes: The German government welcomes the blockchain industry and invites it to become active in Germany.

Here are the results and evaluations of the Bitcoin evolution

„In order to tap the potential of blockchain technology and prevent Bitcoin evolution scam abuse opportunities, the German government wants to „develop a comprehensive blockchain strategy“ and „advocate an appropriate legal framework for trading in Bitcoin evolution crypto currencies and tokens at European and international level“.

Comment: This is an important step that should be implemented quickly. The lack of a legal framework for ICOs and other token launches continues to be a major obstacle for many start-ups in Germany. This technology will only be able to gain a foothold in Europe if it is quickly remedied at EU level. The Finance Committee of the Blockchain Bundesverband has analysed the regulatory legal situation with regard to blockchain tokens in general and with regard to the much discussed token sales („Initial Coin Offerings“ or „ICO“) in particular and will publish a comprehensive statement on this shortly.

The German research budget is larger than ever

Furthermore, the German government would like to „test innovative technologies such as distributed ledgers (blockchain)“ in order to examine their use for government work. In such pilot projects, information should be collected „so that a legal framework can be created on the basis of these experiences“.

Assessment: Pilot projects are essential to use appropriate standards for the use of a decentralised database. Special focus must be placed on the fixed points of each modern transaction: On the one hand, the interfaces to public databases with blockchain must be presented and, on the other hand, we need legal standards for digital and business-capable databases.
Identities on the Blockchain. The Pilot Projects Committee of the Blockchain Federal Association has collected examples of such projects and is happy to support the public authorities in their implementation.

In addition, „research priorities“ are to focus on „artificial intelligence, data science, digital humanities and blockchain technology, robotics and quantum computing“ and „continue and expand the existing technology programmes for application-oriented research to promote digital cutting-edge technologies such as quantum computing, robotics, autonomous systems, augmented reality (3D virtualisation), blockchain, visible light communication and smart homes“.

Comment: Especially in combination with autonomous systems, artificial intelligence and smart homes, generously financed research on blockchain technology is a decisive building block for the future of Germany as a business location.

What is missing? In principle, sandboxing possibilities must be created for the dynamic blockchain area in particular so that new ideas can be tested without artificial obstacles. Only the experiences that emerge can point to the need for future regulation. Without free space, new ideas are worked on with old tools. The results then benefit neither the innovators nor the regulators.

The Blockchain Bundesverband thus shares BTC-ECHO’s fundamentally positive view with regard to the coalition agreement, but also points out where the agreed points do not go far enough. It will certainly also be the task of the Federal Association formed last year to continue to put the topic on the agenda of the Federal Government as a representative of the interests of the German blockchain scene and to participate in the concrete design of the blockchain strategy.

What is the Ichimoku-Kinko-Hyo-Indicator?

A tool in the area of chart analysis is the Ichimoku-Kinko-Hyo-Indicator. It is also known as the Ichimoku cloud indicator and is used to estimate the market situation as well as possible supports and resistances. This article would like to introduce it in more detail.

The inclined reader has noticed it: The analyses by Thomas Hartmann, the head behind the trading school cryptologists, very often refer to the Ichimoku-Kinko-Hyo-Indicator. Certainly not everyone will be able to do anything with it. So this article will explain the indicator as we did with RSI and MACD at the time.

What is the Ichimoku-Kinko-Hyo-Indicator?

The Ichimoku-Kinko-Hyo-Indicator, also known as the Ichimoku Cloud, is an indicator that is used to identify market sentiment and important supports and/or resistances. It consists of various moving averages. This indicator was presented to the public in 1968 by the Japanese journalist Goichi Hosada. However, he has been working on this indicator together with students since the 1930s. Japanese traders and analysts quickly used this indicator. However, it took some time before it arrived in the West.

The picture above shows the chart candles and only the Ichimoku cloud. At first glance it is noticeable that the Ichimoku-Kinko-Hyo-Indicator is comparatively complex and consists of different partial lines. Let’s take a closer look at them!

Meaning of the individual lines

Dark blue is the Conversion Line, known in Japanese as Tenkan-sen. It is a kind of moving average in which the average is formed from the high of the last nine days and the low in the same period. Nine days is the default value, which will be discussed again later. The conversion line is a measure of the market trend. This function as a signal line is the primary use case. It is not a dominant support or resistance line.

Orange is the base line or in Japanese Kijun-sen. It is formed similarly to the Tenkan-Sen and is the average of the 26-day high and the 26-day low. The Kijun-Sen is therefore slower than the Tenkan-Sen. It can be used as a stop loss because it represents a support or a resistance. If the course is above the Kijun-Sen, it is a bullish signal, if it falls below it, it is a bearish signal.

Green is the Lagging Span or the Chikou Span. It simply represents the price or the close values of the day candles, but the values are shifted by 26 days into the past. So the Chikou Span on July 9th is as high as today’s Close-value.

The Kumo Cloud: The Heart of the Ichimoku Kinko-Hyo Indicator
The red, green colored area in the chart is striking. It is also the most famous part of the Ichimoku cloud. This cloud is on the one hand a signal generator. If the price is above the cloud, the general trend is bullish and a price below the cumo cloud is bearish. If the price is within the cloud, the price is currently moving sideways.

Specifically, two lines form the kumo cloud, the violet line and the red line in the chart. These lines are also partial indicators.

Violet is the lead 1, also known as Senko Span A. The value is calculated as an average of Tenkan-Sen and Kijun-Sen and entered in the chart with an offset of 26 days. This means that the Senko Span A reaches 26 days into the future. The Senko Span A forms part of the limit for the so-called Kumo cloud.

Finally, red is the lead 2. Analogous to lead 1, this is also known under the term Senko Span B. Similar to Tenkan-Sen and Kijun-Sen, this is an average of the maximum of the last 52 days and the minimum in the same period. Like the Senko Span A, this partial indicator is entered in the chart with an offset of 26 days. Together with this, the Senko Span B forms the edge for the Kumo cloud.

If Lead 1 rises above Lead 2, the upward movement gains momentum, if Lead 1 falls below Lead 2, the same applies to the downward movement. For this reason, the cloud is green in the first case and red in the second.