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Is Blockchain Dead?

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Is Blockchain Dead? That’s the question that this Article on Bloomberg addresses and this Lecture about the future of money (blockchain, crypto currencies, fiat currencies) by Jim Rickards attempts to answer. We believe that although Blockchain has many merits, we also believe it has many limitation too. The limitations are particularly obvious when it comes to using Blockchain as the foundation technology for crypto currencies like Bitcoin. Bottom line, Blockchain doesn’t have the horsepower nor technology capabilities to continue supporting crypto currencies in our vast global financial system. That said, there is a technology that can handle the demands of a global economy. That technology is called Hashgraph (look at our POST back on February 5, 2018).

The topics of Blockchain and Hashgraph technologies and Crypto Currencies should be of importance for individuals and more important to businesses. Understanding these technologies and how to better utilize these technology issues will impact the businesses we operate and will ultimately impact our lives in the future. That said, we don’t feel the need to rewrite our position on these topics (Blockchain, Bitcoin and Crypto Currencies) as we previously covered these topics in our POST back on February 5, 2018. The background of these technologies and their implications are thoroughly discussed in the interviews we included in the post.

As we mentioned back in February 2018 and we continue to believe today, HASHGRAPH is/will be the leading technology going forward…not Blockchain technology. We hope you will find this post/and previous post (February 2018) to be insightful and helpful. Remember, do your own research. Then make better informed decisions. We’ll look forward to posting again soon!

GMS BUSINESS CONSULTING, INC. – provides lawyers/law firms, for-profit & non-profit organizations, and business professionals with Accounting Services, Business Development Services, 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 focus and tactically grow your business.  We would welcome the opportunity to speak with you.

info@gmsbusinessconsulting.com

707-218-3135

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Bitcoin and Blockchain For Lawyers

Bitcoin & Blockchain For Lawyers should be considered thoughtfully before implementation. A recent blog post by the law firm software management firm, MyCase, presents a clear (yet basic) description of how Bitcoin and Blockchain technology may work together in terms of payment receipt by lawyers and law firms for services rendered. We have concerns that we would like to share with you…

FIRST – Our Concerns About Bitcoin:

  • Bitcoin has no official oversight body to ensure against fraud and cyber security threats (other than a fictitious name, Satoshi Nakamoto), there is no record of ownership/creator/overseeing entity…nothing! So who or what is really behind this crypto currency? This may be changing though according to an article on Bloomberg. Crypto currencies may be facing their biggest hurdle yet…
  • Bitcoin is backed by nothing…just people agreeing that it has “some” form of value…an intangible value based on what? This can also be said about our current fiat currency system in existence today. However, there is one key difference. At the end of the day, the U.S. currency and other world currencies are backed by the “full faith and credit” of their respective government. Yes, that too can be questionable as to the economic soundness of any particular country. However the government does take responsibility to oversee and manage the stability of their currency through their central banks. This oversight effects all persons not only of the issuing country, but transactions using that currency world-wide.
  • Bitcoin does not work like most recognized/accepted currencies around the word. One can’t transact with it all over the world or in ordinary day-to-day transactions as you would using your debit or credit cards because not everyone accepts Bitcoin as a legitimate exchangeable form of currency. The challenge that Bitcoin and most other crypto currencies face is, that almost nobody accepts nor uses these crypto currencies on a daily basis for business or personal financial transactions…see this article from Bloomberg.
  • Bitcoin in its current state is completely unsustainable as a crypto currency, in its current form to be used on a global scale in day-to-day transactions (using Blockchain technology) based on the IMMENSE amount of energy required to mine/produce one Bitcoin. It’s completely unsustainable in its current state. (See points below on Blockchain vs. Hashgraph technology below.)
  • In addition, most of you know that Bitcoin is EXTREMELY volatile! As of today’s posting (06-04-19), Bitcoin is up approximately 35% over the past month (from $5612 to approximately $7607). However, for the past week it is week it is down nearly 10% (from $8536 to approx. $7607). So as an attorney or business professional, when do you convert to US dollars? On any given day it can be up or down significantly. You could either make or lose a lot of money depending on the day of conversion to U.S. dollars. Is that how you want to operate your business cash-flow?
  • We would suggest to lawyers and business professionals to carefully consider the risks of accepting Bitcoin as payment currency for services provided until the crypto currency itself stabilizes (it may or may not). If you want to use Bitcoin in your personal life as a speculative investment, then that’s your choice. Question…do you believe you have the experience/expertise/tools/and the time needed to competently and successfully trade Bitcoin and make a profit? Perhaps you do, and if so, good for you. Proceed with caution…and keep in mind the chart below on Bitcoin’s pricing history:

SECOND – Issues with Blockchain Technology & Crypto Currencies:

It’s true that Blockchain has many, many capabilities. In fact, Fintech News posted an article that major central banks around the world are “exploring” crypto currencies using Blockchain technology. The “key word” is “exploring”…not implementing. See Article HERE or click the picture below:

Fintech News
  • Blockchain, is considered by many to be “the technology” of the future used for crypto currencies. Blockchain technology has many exciting uses for future business application. However to be used as “the technology” engine behind crypto currencies, there is one key challenge that makes Blockchain an unlikely solution:
    • From a capacity standpoint, Blockchain lacks the robust number-crunching capabilities needed to handle the vast amount of financial transactions processed in the financial world in reasonable time periods for businesses and consumers.
  • Based on our research, Hashgraph technology, (not Blockchain technology) will likely be the technology used to support mainstream crypto currencies going forward. The reasons why Hashgraph will likely be used, and how it compares to Blockchain is too lengthy a discussion for this post. So please see our next point below…which takes you directly to some expert sources comparing these technologies.
  • For an extensive look into Blockchain vs. Hashgraph technology, please refer to our February 2018 post on “Hashgraph vs. Blockchain.” Listen to what the experts have to say regarding these technologies and how they compare and deal with the needs and challenges of crypto currencies going forward. Then come to your own informed conclusions as we have.
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OUR CONCLUSION:

Blockchain has its place in the world today and is extremely valuable! Hashgraph technology also has its place in the world today and for the future in business and financial applications that will effect us personally as well. In our humble opinion, Hashgraph may completely replace Blockchain as the technology of choice used for driving the future of crypto currencies. That said, we won’t be so narrow-minded to say we won’t be swayed that other technologies being developed can’t be used in future crypto currencies either. That said, the arguments/facts presented by the experts in this field (from our February Post) are very compelling. As for us, we’ll keep accepting payment for our services directly in U.S. dollars, without the extra step and financial risks of currency conversion. We hope you find this post to be helpful and insightful in making your business decision as to accepting Bitcoin for the services your law practice provides.

GMS BUSINESS CONSULTING, INC. – 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), designedto 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 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