Physical gold and digital gold: two sides of the same sound coin
- 20 Novembre 2018
- by Blogger
Venezuela, where bitcoin trading is at an ATH and the socialist government has issued its own cryptocurrency amid record-breaking inflation and other economic woes, has been denied access to its own gold reserves by the BoE. The justification used for denying the country’s request to repatriate 14 tons of gold, worth about $550 million, is that there are fears that Nicolas Maduro, president of Venezuela will liquidate the gold for private gain. This situation is at the heart of the Bitcoin philosophy and technology. Bitcoin cannot be censored, and it cannot be stopped so long as there is legitimate dedication by its users to keep it going. The tired out phrase “be your own bank” shouldn’t be advertised to any government, but in the case of Venezuela, it would have served well having done so. They should have sold their physical gold for digital gold well in advance of any sanctions.
While Bitcoin Is Down, Big Players Continue To Pour Money And Faith Into Blockchain
Blockchain technology has had some major ups and downs over the past year, taking investors on a financial (and sometimes even emotional) rollercoaster.
While the prices soared last year, hitting monumental highs, recently the Bitcoin price fell to the lowest it's ever been - $5,165 – the lowest price since Oct. 18, 2017.
Many have been wary about investing in the crypto market specifically because of these unpredictable price swings. The future is unseeable, and you’re unsure what tomorrow holds. The ever-changing “mood” of the crypto market has caused many large corporations to stand by the wayside - hesitant to invest in a project that has more foreseeable risks than benefits.
But the real reason that we are still hearing about blockchain technology constantly, and will continue to in the future, is simply because blockchain is not planning to go anywhere.
With the token market in question, hardcore crypto enthusiasts turn to blockchain to save their hopes of a decentralized world, and they’re not alone. In the past few months, we’ve seen major companies and VC funds joining in, investing in blockchain and the promises it holds of security, transparency, and efficiency.
In fact, in Fortune’s list of the best investing advice for 2019, experts include blockchain alongside robotics and AI as some of the biggest technological changes we’ll see coming to the largest companies in the next few years.
Big corporate names including Facebook, Google, IBM, and Microsoft have been open about their research and experimentation with blockchain technology. And while it took some time for these companies to come around to the idea of blockchain, there’s a lot at stake.
The global market for blockchain related products and services is already valued at $700 million, and will continue to rise, and is expected to exceed $60 billion by 2024. So whether these companies are finally coming to play because they are threatened by the new technological giant or because they really want to utilize for a variety of issues such as global transaction speed and payment processing, their entrance into the blockchain world cannot be ignored.
Just last week the SEC announced that it is cracking down on regulatory abuses and outright fraud in the industry, giving companies more assurance that the blockchain companies they invest in are legitimate.
Just recently, a blockchain startup has completed a funding round from ventures such as Sequoia (China). AERGO has raised 30 million dollars to act as a high-scale hybrid blockchain. The company was founded by Blocko, one of Korea's largest blockchain providers, which is backed by giants such as Samsung.
Blocko is also collaborating with another giant, Hyundai, to create a document management system for enterprise companies.
Another example of corporates partnering with blockchain these days, is Air France-KLM, Air Canada, Lufthansa, and Air New Zealand partnering with Winding Tree to try and innovate in an old-fashioned, and some might even say antiquated industry.
While countless other blockchain companies are bridging the gap between the modern and the traditional, by inviting large corporations to play in the blockchain playground, only time will if the old and the new can play together.
There’s no doubt that blockchain technology is here to stay, but the question remains as to just how quickly the mass adoption of it will take. The internet in the form of the World Wide Web was debuted in the early 1990s, long before mainstream adoption which arguably didn’t occur years later with the invention of social media sites.
Just like the internet at the time, little is known about blockchain technology, and we still have a lot to learn about the possibilities it will eventually offer us.
This article does not constitute investment advice and is not a solicitation for investment. Auromoney does not render general or specific investment advice and the information on this article should not be considered a recommendation to buy or sell gold or precious metals. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.