Blockchain technology has a good number of applications today. It has changed the way people engage in transactions. However, a lot of people are still hesitant to get involved in cryptos considering the volatility of the market. And in reality, even finance experts have a different opinion regarding Bitcoin and blockchain technology as a whole.
For Alibaba founder and chairman Jack Ma, he is the latest to give his opinion regarding both Bitcoin and blockchain technology. He mentioned that Bitcoin is a bubble and not blockchain. He recently made these comments during the World Intelligence Congress in Tianjin.
Alibaba and Blockchain Implementation
Jack Ma mentioned that Alibaba focuses on blockchain implementation and not Bitcoin. He said that “Bitcoin is now a hot word. First, blockchain is not a bubble, but Bitcoin is a bubble. Bitcoin is just a tiny application of blockchain. At least inside Alibaba, blockchain must be a solution that addresses the privacy and security issues in the digital era”.
The Alibaba founder also mentioned that blockchain technology is what would drive the coming digital revolution. He identified the different number of practical benefits of blockchain technology for different types of businesses. In fact, Alibaba today is already exploring different types of blockchain innovations. Alibaba has been investing in data security as well as privacy solutions that make use of blockchain technology.
In 2016, Alibaba was able to launch a blockchain email repository. And in 2017, Alibaba signed a partnership with PwC in order to develop food traceability architecture using blockchain technology. There were also rumors that Alibaba invested in a new crypto mining platform called P2P Nodes. There are also reports that Alibaba registered a number of new blockchain ventures including “Ether Lock” and “Ethernet Lock”.
However, there is dissatisfaction on the part of Jack Ma how people are exploring the technology. He mentioned that people are putting too much emphasis on the money-making potential of cryptocurrencies. He reiterated the need to focus on blockchain technology’s potential and not just treat it as a “gold mine”
Is Bitcoin a Bubble?
According to Jack Ma, Bitcoin is a bubble. He also has shown lack of interest in Bitcoin in the past. However, he isn’t the only one that has this opinion regarding Bitcoin. Bill Gates and Warren Buffet are among prominent names that have mentioned a negative comment regarding Bitcoin as well.
However, it is undeniable how institutional investors are now interested in investing in Bitcoin and blockchain technology. Could this mean that there is an incoming bull-run? Or at least, will there be stability once these businesses take part in the crypto market?
If you will look at Bitcoin’s price in 2017, from starting just around $1,000, it was able to hit almost $20,000 before the end of the year. However, today, it is already struggling to maintain $8,000.
Is Jack Ma correct saying that Bitcoin is a bubble? Or will history prove doubters wrong? After the recent conclusion of Consensus 2018 conference in New York, many crypto investors are still left with questions regarding the market especially with the regulatory changes happening in different parts of the globe.