GMS Business Consulting No Comments

BLOCKCHAIN or HASHGRAPH

Recent Article on Blockchain on Forbes

BACKGROUND:

Blockchain or Hashgraph technology. We believe our readers want to better understand what technology will drive global ecommerce in the future from banking & financial to consumer product transactions.

To better understand this issue, it’s important to understand the two primary technologies available in the marketplace today, and to assess the differences in terms of capability, viability, practicality of application, speed of processing, and transactional costs. Based on our understanding, the two main competing technologies existing today for future consideration is either going to be Blockchain or Hashgraph technology. We thought now would be a good time to re-post one of our previous posts from February 2018 that addresses the differences between Blockchain vs. Hashgraph technologies. Understanding the differences between these two technologies will help our readers to better understand their viabilities in the future.

Once you finish listening to and reading the linked interviews and charts, you too will be better positioned to determine which technology will prevail globally, and which technology will more likely to be used in the future for cryptocurrencies as well.

Hadera Hashgraph Article on Computerworld.com Image Blackjack3D/Getty Images

CRYPTOCURRENCIES & BITCOIN:

We also believe this re-post of evaluating the future viability of Blockchain or Hashgraph technology is timely as well. We also want to draw your attention to the challenges and opportunities with both technologies (Blockchain or Hashgraph), and how they affect cryptocurrencies like Bitcoin. In light of the recent attention and steep run-up of Bitcoin ($18,000+), we do want to state that we certainly believe cryptocurrencies ARE the future monetary mechanism of conducting financial transactions and settlement on a global basis. The question is, will future cryptocurrencies be based on Blockchain or Hashgraph technology?

Based on the evidence we have seen so far, Bitcoin and the Blockchain technology it is based on, can NOT be viewed as a sustainable global digital currency. Please listen to the following links below, as they address the opportunities and challenges of these technologies; from the simplest in concept, to more complex discussions:

Original post from Feb. 2018

KEY VIDEOS & INTERVIEWS:

  1. https://youtu.be/gah5IgRb7qw
  2. https://youtu.be/SF362xxcfdk
  3. https://youtu.be/CaZSxvO4T3M
  4. https://youtu.be/evWBgNdWNDk
  5. https://youtu.be/pOc23lJw7ls
  6. https://youtu.be/1NBfH7dMK4Y
  7. https://www.youtube.com/watch?v=RLkhwFQSPyY&list=TLPQMjEwMjIwMjF4Ag6m8srIkQ&index=3
  8. https://www.youtube.com/watch?v=BfmDDg8KuTI
  9. https://www.youtube.com/watch?v=hzxGIAvzNgM
  10. https://www.bloomberg.com/opinion/articles/2021-03-24/bitcoin-miners-are-on-a-path-to-self-destruction

COMPARATIVE DATA:

I encourage you to CAREFULLY listen to each interview link (above) from our original POST, and also look at the following two comparative charts on processing capabilities and costs:

COMPARATIVE CHART #1 – statistics backing these claims.

COMPARATIVE CHART #2 – Here’s another comparison of Bitcoin vs. Hashgraph cryptocurrency performance.

CONCLUSION:

Based on these interviews, and the data we have reviewed and shared, we believe the evidence is quite clear. Hashgraph technology will lead the future in global transactional infrastructure. Why isn’t this being discussed in the mainstream media? We’re not sure…

The reason for our re-post and further discussion of Blockchain or Hashgraph technology has been influenced by recent news commentaries, public discussions and opinions, and lastly by the comments of close friends and relatives. Of particular interest to us is the fact these same relatives and friends who have little or no experience in business, finance, financial markets, and cryptocurrency technology are now experts in these areas. The fact that these same family and friends most interested in cryptocurrencies are the ones who don’t own any other investment assets (other than Bitcoin). This is a red herring to us, as they are now suddenly the experts, touting the merits and future potential of Bitcoin and Blockchain technology. We’re not saying you have to be a financial expert to properly identify and evaluate investment opportunities. Quite the contrary! What’s more important to us, is to be open-minded to conduct further research, ask more questions, evaluate alternative data and information, and then compare what you’ve obtained with the information that is currently popular on mainstream news and in discussion groups.

Our concern is, like with speculative stock trading on Wall Street Bitcoin and many cryptocurrencies may be experiencing a “pump-and-dump” or as it is known in the crypto world as “the rug pull”. This process may be applied with speculators or traders or speculators of many cryptos, including Bitcoin. These speculators use clever marketing strategies (including word of mouth and social media postings )to lure new customers to their products. Surprisingly, even more reputable companies like PayPal and Visa are now offering cryptocurrencies (like Bitcoin), as means of transaction processing and offer reward incentives to do so. My question is, do the CEO’s and CTO’s not understand the technology this is based on given its unsustainability, limitations, and high transactional costs? If not, why not? We thought this ARTICLE on cryptocurrencies posted today on Bloomberg (7-08-21) would be of interest too. Seems like others may finally be waking up to the fact that there really does need to be some form of regulatory oversight on cryptos, as they are intended to be a means of conducting reliable financial transactions, not for pure speculation. At least that’s our position.

All that said, getting back to the issue of Blockchain vs Hashgraph technology, our question is: If a better technology platform solution exists (like Hashgraph), and a cryptocurrency utilizes this superior technology, then why would you put your money into a cryptocurrency (like Bitcoin and others) that utilize an inferior technology platform like Blockchain? It just makes no logical sense to us other than perhaps this is purely a speculative trade or crypto bubble (speaking of Bitcoin and others alike). Many people may make a lot of money trading these cryptocurrencies, but unfortunately many people will also get burned in the long-run as well. Yes, money can be made in trading crypto’s, perhaps lots of money can be made by speculative trading by those experienced in day trading, but what about the average Joe? That’s why we’re posting this subject again…to offer another cautionary perspective to the public and to our readers. Just keep in mind… isn’t a key characteristic of a “credible/reliable” currency based on history of stability and not extreme high volatility?

I hope we’re wrong on this one… True, Bitcoin can go higher…perhaps much higher, but based on what? Speculation or sustainability? Only time will tell. Until then, we hope you find this information helpful in your evaluation of future global technology and cryptocurrencies, whether it be based on Blockchain or Hashgraph. Remember, do your own homework, then make a better informed decision.

GMS BUSINESS CONSULTING, INC. – Provides lawyers/law firms, for-profit & non-profit organizations, and business professionals with Accounting Services, Business Development Services (M.A.P.), Business Optimization Services, and Digital Marketing Services. We help business professionals strategically manage and tactically grow 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 & management solution), designed to help you strategically manage and tactically grow your business.  We would welcome the opportunity to speak with you.

info@gmsbusinessconsulting.com

707-218-3135

GMS Business Consulting No Comments

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

GMS Business Consulting No Comments

BITCOIN & CRYPTO CURRENCIES

Good Morning Readers!  So…is Bitcoin here to stay?  Is it a legitimate currency or is it simply another fiat or fad currency?  We have been researching and discussing the craze and issues surrounding Bitcoin and crypto currencies, and wanted to share what we learned with you.  It seems that everyday people we speak with tend to have many of the same questions…such as:

  • How does it work?  (Click HERE for a basic introduction to Bitcoin)
  • Is it a real and viable currency?
  • Is it a bubble?
  • Is is sustainable?
  • What backs this and other crypto currencies?
  • Will crypto currencies put the banks out of business?
  • Should I invest in crypto currencies?
  • Is it safe?

Trying to answer all these questions isn’t possible in one post.  Rather we simply want to address these questions, but from a broad or macro spectrum.  Listed below are a few links from some pretty smart people who have a good understanding of the economic, financial, geo-political and social perspectives who also share their thoughts on crypto currencies.  Just take some time and listen to what they have to share.  You don’t have to take their word for it, just balance what they’re presenting and addressing and compare it to the many, many crypto currency proponents out there in order to get a more balanced view.  That’s all…  So, take a listen to these interviews (some of these interviews cover a multitude of economic areas other than crypto currencies, but what they have to say in these other areas shape their views on crypto currencies.  Then we’ll highlight a few of our own points to consider further down in our post:

CAUTIOUS PERSPECTIVES ON BITCOIN AND CRYPTO CURRENCIES:

POINT #1 – There are so many questions and issues related to Bitcoin and crypto currencies as to whether or not they’re a legitimate form of currency.  Before we go any further in expressing our opinions, let me be very, very clear on this…  GMS Business Consulting, Inc. is NOT an investment advisory firm. We do NOT give clients investment advice…period.  We provide business advice and are compensated for providing business advisory services and guidance. Because we have financial backgrounds at international investment firms and international consulting firms, we are simply choosing to exercise our freedom of speech by expressing our OPINIONS on various sorts of issues, events, and matters including Bitcoin and crypto currencies to our readers.

So…our short answer as to whether or not Bitcoin is a legitimate currency or not is…in our opinion is…yes, it’s “currently” a legitimate yet limited form of currency as evidenced by some businesses and individuals accepting Bitcoin as a form of payment for goods and services provided.  That said, this crypto currency has never been tested in a financial crisis nor can it be “directly” purchased or redeemed at your local bank (yet).  You can purchase crypto currencies directly through a crypto wallet (such as Coinbase) by using your bank account or debit card/credit card to purchase the crypto currency itself and storing it in your crypto wallet.  However your local bank doesn’t currently “issue/sell/redeem” Bitcoin.  Once you have the crypto currency in your crypto wallet, you may then use these to pay for products and services from businesses who accept Bitcoin or other crypto currencies for payment.  The funds used to purchase crypto currencies do come directly from your bank account in the form of U.S. dollars (or whatever your local currency is such as euro’s/ sterling/etc.), and the crypto currency can then be sold and stored in your crypto wallet to purchase other crypto currencies such as Ethereum or Litecoin…or… the proceeds may be converted back into your local currency and redeposited back into your local bank account.

POINT #2 – Now…as far as “investing” in crypto’s is concerned, there is no doubt that many, many individuals have made a lot of money investing and trading these crypto currencies over the last few years, especially in 2017.  That said, many, many people will lose a lot of money as well investing/trading Bitcoin and others, just as many individuals made and lost money in the .com bubble and the real estate bubbles.  Both of those bubbles had viable companies and assets, but many companies were not viable or they increased to such highly inflated values with nothing to to back their valuations, resulting in their downfall.  Did some .com companies and real estate survive the 2008 financial crisis and still exist today?  Of course some survived and thrived!  But not all survived nor made money.  Given that crypto currencies are relatively new, untested, highly volatile and to a great extent still somewhat of a mystery as to how they actually work and what backs the value of these crypto’s at the end of the day, we would approach investing in crypto’s with caution.  Invest only what you could afford to lose.

POINT #3 – As far as “trading” crypto currencies, it all comes down to buying low and selling high…it’s about TIMING!  It’s about “when” you buy and when you sell.  If you don’t have knowledge about the investment vehicle you’re trading AND a discipline to manage your trading, then you’re simply gambling your money blindly with the hopes and dreams of making money.  It’s called greed…  As humans, we tend to be motivated by two emotional states of mind…greed and fear.  Right now, 9 years after the real estate bubble, and 16 years after the .com bubble, many people have forgotten the the golden rules…the principles of investing…buy low, sell high.  The question is…how high will Bitcoin and other crypto currencies go?  Nobody knows!  If you believe you have an adequate knowledge of crypto currencies and the discipline to successfully trade these crypto currencies, then by all means exercise your freedom to do so.  If you don’t have either one, then I  would make three recommendations:

  1. Get informed on both sides (research the pro’s and cons/risks of investing in crypto currencies) from knowledgable, experienced sources, and…
  2. Implement a disciplined investing/trading system to identify changes in the momentum of the particular crypto currency you’re interested in investing or trading, and lastly…
  3. Invest only what you can afford to lose…period.  As mentioned before…these crypto currencies have NOT been tested in a financial crisis.

POINT # 4 – When it comes to really understanding the mechanics of crypto currencies, I still have not seen nor heard a “clear” definitive description or seen a diagram adequately explaining just how these actually work, (terms such as “distributed ledgers” and “blockchain” technology etc.)  How do they really work?  We’ve read the definitions, but even with our financial and consulting backgrounds, it’s still challenging to comprehend the meaning and processes involved given that the definitions are filled with crypto coding language to decipher in order to understand a single point in the definition itself!  Could YOU describe these terms to your colleagues so that they really understand how they work?  Can you explain it to the average person on the street in detail that perhaps even to a high school student to understand?  Or…are they so complex that only coders may understand?  That was the problem with derivatives… People could use the lingo, but they really had no idea of how they actually worked.  In my view, if you can’t explain it in plain…clear…English, then the person describing it really doesn’t understand it either.

POINT #5 – What actually backs these crypto currencies?  Other worthless forms of fiat currencies?  In a melt-down or an extreme loss of confidence, what is actually protecting and backing the value of this currency?  Who is backing it?  Enough said about that…

POINT #6 – Also, please consider the following points related to Bitcoin and crypto currencies:

  • If you believe investing or trading in crypto currencies will not become controlled and regulated by Wall Street and the central bankers of the world, the IMF or the BIS…think again.
  • If you believe Wall Street and the central bankers of this world are going to hand over or transfer their oversight/regulation/money-making control and power of international banking to unregulated crypto currencies to the individual or to the wild west internet?…think again.
  • If you believe Bitcoin or these crypto currencies can continue increasing in value without revaluations/corrections etc…think again and don’t forget the lessons of history.

POINT #7 – All that said, in this post, we’re simply wanted to present the cautionary-side of Bitcoin and crypto currencies by some very seasoned professionals with different backgrounds, and to give you some food for thought before jumping on the bandwagon of crypto currencies.  We wanted to provide the cautionary side because there are dozens and dozens of people singing only the praises of Bitcoin and other crypto currencies.  As mentioned earlier, you can watch dozens and dozens of people endorsing crypto currencies all over the internet.  And who knows, they may be spot-on with their research and analysis, but many are simply trying to sell you something without explaining the downside risks or providing a sound foundation of information for the individual.  We’re not concerned with Wall Street or the central bankers or the individuals who have already made their fortune by investing on the ground floor of these crypto currencies.  We’re mostly concerned about the average person, professional or laborer, who works hard for their money trying to make a living, and are considering crypto currencies.

POINT # 8 – Lastly, we do believe crypto currencies and blockchain technology are here to stay, but not in their current state…  Whether we like them or not, they’re part of our future in one form or another.  The issue is how will these crypto currencies be valued, protected, backed, as well as, how and who will regulate them?  Which of these will survive?   Have you considered that perhaps the central banks of the world, the IMF or the BIS are in the process of creating their own crypto currencies?  Do you think they haven’t been exploring this already?  Our thoughts and recommendations are simply to do your own research, speak with your investment adviser, and then proceed with caution.  We hope this post is of value to you because you are valuable to us…  Keep an eye out for our upcoming post in a few weeks about Hashgraph…will it replace blockchain technology?

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