Maria Bellmas, the Associate Director of Trade and Supply Chain of NAZ Institutional, recently questioned the effectiveness of the distributed ledger technology or the blockchain technology over the traditional systems.
In a recent blog post, the Director of Australia and New Zealand Banking Group Limited [ANZ] claimed that Blockchain technology is “sold as a solution to all of life’s problems” and added that not all projects would benefit from it.
She was of the opinion that even though the blockchain technology had numerous use-cases, it was still not a necessary technology. Bellmas stated that the existing legacy database and technology solutions were better for certain projects and emphasized that the technology was not mature enough. According to Bellmas, existing database systems have already provided solutions for all the issues that the blockchain wants to fix.
The genesis of blockchain was meant for completely eliminating the need for third-party intervention for the execution of transactional settlements, while traditional financial systems were still very much in need of it.
According to Bellmas, the distributed ledger technology has become the go-to technology in the tech ecosystem, whose success was fueled by the Bitcoin boom and the subsequent collapse. The technology raises important questions, despite offering genuine solutions, she asserted.
Citing the example of Chinese blockchain-related projects in 2018, where only 8% of the total 80,000+ projects were still active, Bellmas explained that the technology was not a solution for all database projects.
He Baohong, the director of CAICT’s Cloud Computing and Big Data Research Institute, had earlier compared blockchain to other short-lived contemporary technologies and said that the latter would eventually die out. However, in the case of the blockchain, the director stated,
“In this circumstance, governments globally are accelerating their efforts to establish unified standards in order to help blockchain projects to achieve real-life applications.”
Subscribe to AMBCrypto’s Newsletter
Bitcoin will likely be valued at $100,000 with a market cap of over $2 trillion before the end of 2021
The entire cryptocurrency market seems to be on the brighter side of the market since the beginning of the year. A majority of the coins have recorded significant recoveries from their 2018 slump, a period during which most coins lost over 90 percent of their value, when compared to their all-time highs. Among all the coins in the market, Bitcoin [BTC] aka the digital gold, was noted to be making a massive comeback as the coin breached the $11,000 mark after nearly 15 months. The coin however, soon retracted to settle below the $11,000 level.
According to CoinMarketCap, at press time, Bitcoin was trading at $10,887.27 with a market cap of $93.549 billion. The coin recorded a 24-hour trading volume of $20.757 billion for the past 24 hours and saw a massive rise of over 17 percent over the past seven days.
Anthony Pompliano, Co-founder of Morgan Creek Digital Assets, predicted that the largest digital currency could rise to reach $100,000, before the end of 2021. Pomp added that he was around 70-75 percent confident in this prediction. He stated,
“As I have previously said, making predictions is difficult […] Part of my process as a professional money manager is forming a thesis (price target), identifying a timeline (date), and establishing a confidence level. And then constantly re-evaluating those three aspects of my thought process as I receive new information.”
Pomp however, listed six pointers that have to be understood beforehand. First, this prediction is not an investment advice, and people should do their own research before investing in the digital currency. The second is with respect to Bitcoin’s volatility, with Pomp remarking that since it was a highly volatile market, the coin could witness a significant fall before being valued at $100,000. He stated,
“I anticipate that there will be numerous 20-30% drawdowns from new all-time highs as the asset continues to appreciate in value. These mini-boom/bust cycles should not cause panic, but rather need to be understood as natural market dynamics whenever an asset gains significant value in short periods of time.”
Further, the partner of the investment firm stated that the rise would be driven by several catalysts. This includes institutional adoption, exchange-traded funds and retail product approvals, global instability, governments all across the globe manipulating currencies, markets and economy. He went on to state,
“The market cap of Bitcoin will reach $2+ trillion when Bitcoin is worth $100,000. This is less than 1/3 the market cap of gold and less than 1/40 the global money supply.”
Subscribe to AMBCrypto’s Newsletter