More Bubble Claims, A Push Towards Blockchain
Bitcoin continues to maintain its steady pace in the market. This is despite the news of splits and continuous claims of a bubble. The bubble aspect, in a way, interests more onlookers because of its likely market effect.
The latest to add to the view of a bubble is the CEO of a Chinese investment bank. Fan Bao of China Renaissance says Bitcoin is getting “a little bit bubblish.” He also added that the world’s top cryptocurrency is “a little bit hot”. Bao’s view comes as UBS cites recent jumps in Bitcoin’s valuations as a speculative bubble.
The global investment bank recently released a report, Cryptocurrencies: Beneath the bubble. It doubts that cryptocurrencies like Bitcoin will ever become mainstream means of exchange. Rather, in line with Bao, the bank is optimistic about blockchain. They think the technology will likely “have a significant impact” on major industries.
“Investing in the blockchain wave is akin to investing in the internet in the mid-nineties,” it says. “Blockchain could lead to significant disruptive technologies in the coming decade.”
Bao is a strong believer in blockchain in terms of its wider application in his industry. He didn’t say the same about Bitcoin. Rather, he talked to CNBC on the need to “separate bitcoin from the blockchain.” He describes blockchain as “probably the most disruptive technology” in the financial services industry.
While the bubble push remains a subject of perspectives, it seems to be solidifying attraction to the blockchain. Billions of dollars are being invested in blockchain. The technology is estimated to add as much as $300bln to $400bln of annual economic value globally by 2027. Its application is growing among industries ranging from finance to healthcare and utilities.
More researches are being done to understand how it can can reinvent organizations and industries. Ways are being sought to harness its true power by bringing its many attributes together. Some businesses are being driven to rethink existing business models. Others now re-examine opportunities previously overlooked for further exploration.
Interested investors are also looking into the long-term opportunities and impact of blockchain. This is the case for technology enablers like software creators and those in the financial sector.
Asia is being positioned as a strong base for cryptocurrencies like Bitcoin. Like Bao, there are many believers in the blockchain technology too in Asia. The continent is seeing a new smart global economy being built on an innovative digital platform of trust. For instance, cybersecurity company WISeKey is deploying IoT Blockchain projects in China. Its Trusted Blockchain as a Service platform focuses on IoT, Smart Cars and Smart Cities projects. In the content delivery network business, Gladius seeks to democratize deployment of CDNs and DDoS protection by enabling virtually any user to share their computer as a node in China and elsewhere.
Also, despite China’s ban on initial coin offerings (ICOs), the focus on blockchain is unshaken. Government and private organizations continue to study and implement blockchain technology applications. China continues to work on becoming the first country to offer its own digital cryptocurrency based on blockchain. Hong Kong and Singapore recently agreed on a blockchain-based cross-border trade project. Several other initiatives show the absence of boundaries and opportunities that are limitless.
The market seems to be pushing harder towards blockchain. Organizations that have the agility to reinvent themselves are rising to unlock new opportunities in a digital age. The Bitcoin bubble call will add to the renewed interest in the blockchain technology. However, it would be tough to separate blockchain from the cryptocurrencies it powers.