What has been happening around Blockchain Technology and Cryptocurrencies this week? The most relevant local and international developments as well as appealing background reports in a pointed and compact way in retrospect in our weekly review.
The Bitcoin price set new yearly highs for the fourth consecutive week and is now over USD 18,000, close to the all-time high of 2017/18. Behind this year's price increase is a growing interest from the institutional world that is discovering Bitcoin as a store of value. These developments were made possible by favorable regulatory decisions, which recognized crypto currencies as a dedicated asset class. As a result, the payment service provider PayPal made it possible for its customers to buy Bitcoin and other cryptocurrencies. Nevertheless, quite a few people remain skeptical. For instance, the hedge fund manager Ray Dalio, who this week again expressed his opinion on Bitcoin. Although the "Gold Bug" is a pronounced Fiat opponent, he sees no alternative in the crypto currency. In particular, he criticizes the high level of volatility and the danger that governments could possibly ban the digital currency.
Objections against the relatively young crypto currency are omnipresent. This is not surprising in a new, emerging and complex technology environment. Prejudices and objections such as those of Ray Dalio have been circulating around for years. Finance researcher Lyn Alden summarizes the seven most persistent Bitcoin misunderstandings in a comprehensive essay. She analyzes statements like "Bitcoin is a bubble" or "Bitcoin has no intrinsic value". She also points out that volatility is essential for a young asset like Bitcoin in its growth phase and that a "Bitcoin ban" becomes increasingly difficult to imagine over time.
The area of blockchain applications and digital assets has grown significantly in 2020. Behind it are specialists and entrepreneurs who are enthusiastically pushing products and services within the ecosystem. For this purpose the format "5 questions" was created. In the new interview format, various viewpoints of specialists working in the rapidly growing field are presented. The first interview is with Jan Brzezek, former banker and founder of the Crypto Finance Group. He believes that in all of the disruptive technologies, the short-term impact is overestimated and the long-term impact is massively underestimated. In his view, the greatest potential lies in tokenization, i.e. the representation of an asset on the blockchain.
Blockchain technology is well suited for applications where a high degree of transparency and credibility is required. A classic example is its use in the area of supply chains. In cooperation with the German Department for Economic Cooperation and Development (BMZ), IT Giant IBM intends to create a new platform for transparent supply chains. The project specifically refers to the textile industry, which has highly interconnected and complex supply chain structures.
Furthermore: The philosophy of Bitcoin and the new possibilities of tokenization inspires people from many different fields. The artist ensemble Bitcoin Movement, relies on the new technology as well. The fashion collection of British artist Zuby is completely reflected on the Blockchain. In this way, product-specific information such as authenticity can be checked by an app using an integrated chip. The project may not seem revolutionary, but it is a step in the direction of the digital trade of collectors' items.
Selected articles in the weekly review:
Hedge fund manager Ray Dalio is again critical towards Bitcoin.
For years persistent myths and objections have ranked around Bitcoin. Finance expert Lyn Alden analyzes the seven most persistent misconceptions in a comprehensive essay.
In the new CVJ.CH format "5 questions" Jan Brzezek, CEO of Crypto Finance AG, describes his position on Bitcoin, blockchain and tokenization.
Together with the German Department for Economic Cooperation and Development, IT Giant IBM is developing a blockchain solution to make supply chains in the textile industry more transparent.
Bitcoin's philosophy and the new possibilities of tokenization are inspiring people from a wide variety of backgrounds.
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