Blockchain is more interesting that Bitcoin

October 26, 2017 7:04 amComments Off on Blockchain is more interesting that BitcoinViews: 113

Bitcoin is a bubble and is far less interesting than the developed blockchain technology, which is in its core, according to the CEO of China Renaissance China Investment Bank, Fan Bao. The technology is a decentralized transaction database maintained in a network of computers around the world instead of the same place.

“Obviously, it’s getting hot now, and Bitcoin is starting to become a bubble”, commented Fan Bao. “I think we have to split a bitcoin from a blockchain. It is a very exciting technology, probably the most destructive technology in our industry – the financial services sector”, added the investment banker.

According to Fan Baoo, the world’s largest crypto-currency is just one application of the blockchain technology.

“”I’m a strong believer in blockchain in terms of its wider application in our industry”, said the banker. He jokes that if someone has invested in Bitcoin, they will “get good income”, but he has some doubts about the virtual currency.

Bitcoin is extremely volatile, rising to 6,100 USD over the weekend, reaching a new record. A month earlier the crypto-wave dropped below 3,800 USD. Nowadays it is considered as the most volatile and risky investment instrument.

Moreover, Bitcoin is divided into other currencies, which rise to additional doubts about its reliability.

However, blockchain technology is of great interest and various financial institutions are working on developing it. IBM said it had worked on a block-based platform with several large banks. The network will be used to quickly clear and settle cross-border payments.

The largest US bank JPMorgan Chase said it would also launch a system based on this technology. The new system should speed up and simplify the verification of international payments.

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