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The B.I.S.’s Perspective – On Cryptocurrencies & Bitcoin

An ARTICLE posted on Bloomberg and on the Bank for International Settlement’s (BIS) website states that current cryptocurrencies (like Bitcoin) are not ready for prime time…  In fact, the BIS stated that not only is it not currently a sustainable global option for banking and financial market transactions, but in fact, it could “break the bank”!  The BIS provides an interesting perspective from within their own walls on cryptocurrencies that on the whole, we agree with.  Listen to this INTERVIEW segment with the BIS’s Hyun Song Shin, as he speaks about cryptocurrencies addressed in Chapter V of the Annual Economic Report 2018.  Mr. Shin simply and clearly articulates some of the key flaws in current cryptocurrencies, and in particular addresses some of the technology platform issues behind Bitcoin and other cryptocurrencies with which they are currently built on.  Please read the above referenced article and interview.  Once you have done so, we would like to share with you two additional perspectives…

PERSPECTIVE #1 – At GMS Business Consulting, Inc., we have been convinced for quite some time that cryptocurrencies are the future currency for worldwide banking and financial transactions.  HOWEVER, they will NOT be built on the distributed ledger technology of Blockchain technology.  It is well known in the technology world that blockchain technology, when used for massive amounts of data transactions like cryptocurrency, is not sustainable.  Hashgraph technology however is sustainable…This is simply a fact.  (You may refer to an earlier post on our blog about Blockchain vs Hashgraph technology.)  Blockchain is yesterday’s technology, but in our humble opinion, it is not the future technology, at least with regards to cryptocurrencies and other heavy data intensive needs.  Blockchain has proven itself to NOT be a sustainable technology for cryptocurrencies.  The FUTURE technology to be used in its place is called Hashgraph technology.  It is an extremely powerful and sustainable technology, with no miners needed, it’s very robust, scaleable and secure…all of which meet Mr. Shin’s criteria for a sustainable technology to meet the needs of cryptocurrencies and their use in replacing fiat currencies.

PERSPECTIVE #2:  We believe cryptocurrencies will NOT be unregulated.  As we’ve seen with all the current cryptocurrencies, they are extremely volatile, and are subject to manipulation, hacking etc. (although current fiat currencies are also manipulated).  One of the key issues why cryptocurrencies will not be controlled “by the people” to “run-free” so to speak, is that the banking and financial powers, regulators, governments, and central banks of this world won’t allow that to happen…period.  Do you really think these regulating powers would simply say, “Wow…we’ve had a good run for all these centuries, and made a lot of money too…we’ve also controlled and influenced world governments and economies too, but now we’ll let “the people” take over the banking and financial systems.”  Fat chance of that happening.  If cryptocurrencies are to replace fiat currencies (which we believe it will), it will ultimately be controlled and regulated by the IMF and the BIS in order to become a worldwide acceptable, regulated and usable currency that will use Hashgraph technology, not Blockchain technology.  (Once again, we refer you to our earlier POST regarding the differences between these two technologies.)

Remember, do your own homework by researching both these forms of technology, then you’ll be better informed to understand why the BIS is correct (in our humble opinion) on its view that current cryptocurrencies and the technology platform behind them, are unsustainable.

GMS BUSINESS CONSULTING – provides lawyers and business professionals with Accounting Services, Business Development Services, Business Optimization Services and Digital Marketing Services to help business professionals successfully organize, grow and operate their businesses more effectively and efficiently.  We do NOT provide investment advice.  Contact Us  if you are interested in learning more about our services, and in particular about M.A.P.(our 3-phase business development solution), designed to help you strategically focus and tactically grow your business.  We would welcome the opportunity to speak with you.

info@gmsbusinessconsulting.com

707-218-3135

John 14:15

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THE FACEBOOK SAGA CONTINUES…

Mark Schiefelbein/Associated Press

Mark Schiefelbein/Associated Press

The Facebook saga continues…  Hello everyone!  It’s quite clear (in our opinion), that Facebook puts profits ahead of preserving the privacy of its customers’ data.  Once an organization shares client data with any other organization, control (retaining and maintaining the privacy, security and integrity of that data) is lost…period.  Facebook cannot control third-party organizations and how they use/abuse/share the data once the data leaves its organizations’ infrastructure.  We’ll probably never know just how much individual personal data has been compromised by this social media giant.  Here’s the latest update in a New York Times article that Facebook itself states, “Facebook has data-sharing partnerships with at least four Chinese electronics companies, including a manufacturing giant that has a close relationship with China’s government, the social media company said on Tuesday.”

Does this surprise you?  It shouldn’t by now…at least it doesn’t surprise us.  In fact, it appears that there has really been no leadership within the Facebook organization from the beginning to current day who seriously spearheads organizational protocols for addressing customer data privacy, security and integrity.  What do you think would be happening if whistle blowers hadn’t come forward with this abuse of customer data?  Do yo think Mr. Zuckerburg would have come forward with his rather pathetic excuse/public apology for NEGLECTING the privacy, integrity and safekeeping of his customers’ data?  Or would they be rolling along as they have been for many years staying the course of business as usual?  We understand that Facebook most likely isn’t the only social media company that treats its customers’ data with such disregard of customer data privacy in exchange for revenue.  We’re sure there are others that do the same, perhaps they just haven’t been exposed…yet.

All said, it’s a lack of concern and at the least, a lax policy of safeguarding customer data privacy, as well as, perhaps taking advantage of using their Client Agreements to mask or bury the rights of what Facebook can do with customer data in the small print that is written far beyond the comprehension level of most its customers.  It’s practices like these that makes you wonder what else has been done or IS being done with our data without our knowledge?  The specific concern we’re expressing here isn’t so much focused on businesses using Facebook for business promotional and marketing purposes (it is important, but not the focus of this post), it has to do more with the individual personal users and the privacy of their data that concerns us the most.  Businesses are usually quite savvy and discreet when it come to publishing information on Facebook and other social media platforms, however the general public isn’t, and that’s where the problem and abuse of data privacy is of greatest concern to us.

We fully understand that there are challenges in how we function as businesses and as individuals in this digital age of social media communication (SMC).  As we all understand, SMC can be extremely powerful for business use and personal communication.  It can also be very destructive if abused by companies entrusted with the privacy and security of individuals data and the companies with which they share the data.  As time moves forward, and industry leaders think through and work through their business models and the responsibilities they have to their customers, and as the court rooms and congress begin to settle cases and draft legislation establishing boundaries of what are acceptable and unacceptable practices with consumer data privacy,  we are hopeful and optimistic that there will be better data privacy and security laws established and business protocols put in place , as well as greater transparency and responsibility regarding the privacy of individuals data.  That said, only time will tell… yet at what cost?  All we can say is be careful with the data (text and media files…all data files) you upload to Facebook and other social media platforms.  Do your own research into this problematic business practice of sharing your personal data with other organizations domestically and internationally without your expressed knowledge or consent, then use your own wisdom and discernment as to whether or not this is acceptable to you, and whether or not you decide to use the various social media platforms available that may exploit your personal data.  

GMS Business Consulting – provides lawyers and business professionals with Accounting Services, Business Development Services, Business Optimization Services and Digital Marketing Services to help business professionals successfully organize, grow and operate their businesses more effectively and efficiently.  We do NOT provide investment advice.  Contact Us  if you are interested in learning more about our services, and in particular about M.A.P.(our 3-phase business development solution), designed to help you strategically focus and tactically grow your business.  We would welcome the opportunity to speak with you.

info@gmsbusinessconsulting.com

707-218-3135

John 14:15