Separating Bitcoin from Blockchain, which has economic value? – Mish Talk

Wall Street built on the blockchain

Please Consider Crypto Crashing, Goldman Sachs Aims For A Blockchain-Built Wall Street

Wall Street’s biggest banks have largely avoided investing directly in cryptocurrencies. But many are quietly working to integrate blockchain, the technology behind crypto, into commerce and other activities.

Goldman Sachs already trades bonds and other debt securities for clients on blockchain-based networks such as Ethereum, and the bank is building its own blockchain-based trading platform. JPMorgan Chase already has a platform in place, called Onyx.

Outside of banking, Walmart Inc. has used blockchain to track its supply chains. In real estate, some title companies have used it to record home ownership.

“Blockchain technology will rewire all financial services,” said Tom Farley, the former chairman of the New York Stock Exchange.

That said, Wall Street firms have been experimenting with blockchain projects for at least five years. Despite much hype, few have had a widespread impact on how financial transactions take place.

Others have thrown in the towel. A group of European insurance companies formed a consortium called B3i in 2016 to explore blockchain uses in their industry. In July, the consortium closed after failing to raise new capital.

The blockchain will come

Bitcoin cannot be separated from the blockchain, but it is already proven that the blockchain does not need or need bitcoin.

It is important to note that Bitcoin is a distributed public network that requires mining and huge amounts of electricity (proof of work) to operate. In contrast, the blockchain systems used by Goldman and Walmart require authorized authority.

The presumed advantage of Bitcoin’s permissionless distributed network melts under increased energy costs to run it, massive ledgers, and costs of converting Bitcoin to dollars, euros, etc., to operate as cash.

The permissioned blockchain will end up being a big winner. And it will be a winner without Bitcoin. Bitcoin is too unstable, too expensive for transactional use, and too dependent on energy.

Fun facts

Save me the sap of being able to send Bitcoin anywhere instantly for less. You still have to convert Bitcoin to dollars, euros, yen or whatever to spend it.

Soon, central bank digital currencies will be truly 24/7 and free of charge, but with well-known flaws, including the risk of confiscation.

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It’s an aside. Blockchain technology will succeed, on its own.

Finally, it is more than foolish to believe that governments will adopt Bitcoin en masse or that it will succeed as money if they do not.

Bitcoin has been incredibly successful as a medium for speculation. But unlike blockchain, Bitcoin will never advance beyond that.

Ironically, the more Bitcoin succeeds as a speculative tool, the less it is used as a currency, its original stated purpose.

Why Use Blockchain?

Perceived value of Bitcoin

Much of Bitcoin’s perceived value is now just speculative hype. The word “buzzle” is a good description.

Bezzle is a temporary gap between perceived wealth and long-term economic value.

For more information, please see The Stock Market, Bitcoin, and Housing Fake Wealth Bezzle Will Be Wiped Out.

This post is from MishTalk.Com

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