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.
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