‘Bitcoin Will Conquer Wall Street’ And Other Delusions
It is impossible to count all the unreasonable theories of the future value of Bitcoin. Despite the huge distance between the current price and the ATH of December 2017, and the fact that the blockchain technology is successively implemented in banking projects, there is no shortage of opinions such as the opinion of Mr. Balai S. Srinivasan (ex-CTO in Coinbase). Is it worth considering such delusions at all?
Bitcoin and the utopian thinking
On his official Twitter profile, Balai S. Srinivasan was recently convincing us that Bitcoin will disrupt the entire high-tech industry, Silicon Valley and even Wall Street. Of course, to give him justice, it is also worth pointing out that he did not comment it only on Bitcoin itself but blockchain technology as well. However, he clearly indicated that Bitcoin is a ‘digital gold standard‘, and that ‘every major organization holds some BTC as it is the one universally valued instrument’. How true could these words be?
First of all, it is very risky to claim that Bitcoin would become virtual gold or even that it could replace traditional currencies (fiats). The global banking and economic system is a much more complicated structure to classify such theories as possible at all. It seems to be so obvious that it does not require a longer comment. Secondly, we can see a lot of even huge transactions in Bitcoins, but cryptocurrency is still not a fully fledged non-cash mean of payment. However, for this to happen, Bitcoin would have to be regulated which, on the other hand, would deny the very essence of cryptocurrencies.
Blockchain, not Bitcoin
While one may wonder why Bitcoin has been growing recently, it is worth considering whether cryptocurrencies have a future. What we love the most in Bitcoin – anonymity and transparency of transactions at the same time – truly do not come from the currency itself, but the blockchain technology. Thus, this may be the reason why Bitcoin cannot become anything more than just a cryptocurrency in the future.. In a certain sense, Bitcoin can fall victim of its success.
There is a noticeable tendency to import ideas created on the basis of blockchain technology for various industries, companies and, finally, big banks. The largest banks that currently work on the use of the technology are ING, BBVA, Bank of America, Barclays Europe, Citibank and some others. Once again, we can say that this what prompted sympathy to Bitcoin, blockchain technology, is currently being implemented by regulated institutions, operating in the environment limited by law.
If you want to comment this article, visit our Blockchain24.co forum!
The blockchain24.co site shall not be held responsible for any consequences resulting from the use of data contained in the pages of the site.