It's time to separate the Blockchain from Bitcoin
Kevin Turner
I specialize in driving business transformation through Business Process Automation (BPA) solutions. My mission is to help companies streamline operations, maximize efficiency, and unlock growth potential.
Of course I'm speaking metaphorically, but in order for blockchain technology to become fully implemented and accepted, it seems that we must disconnect the common notion that the two terms are synonymous. Like many others, I am all in with the belief blockchain technologies will fundamentally disrupt how things are done. But it's a long term play, and it will take time to find its way into our everyday lives.
I'm sure I'm not the only one recognizing its association with cryptocurrency as the proverbial double-edged sword – possibly legitimizing and delegitimizing at the same time. Sensational news items about the volatility of bitcoin often mention blockchain as well. Investors who have only a limited understanding of how they interact could punish those involved in projects not related to bitcoin and set back development and adoption in the space.
China recently announced their intention to prevent everything associated with cryptoccurrency, and India says they are cracking down, though it's not clear what that means. Visa and MasterCard will make it more difficult to use their cards to buy crypto. What long and short term effects might this have on companies in the midst of raising funds for a new blockchain venture unrelated to bitcoin?
Even though it has tremendous value on its own, is it possible that we are building a self-fulfilling bubble for all things blockchain, where values for projects with little or no intrinsic value are inflated, and less money exists to invest in solid ideas that will genuinely change the world? It seems that the companies simply adding blockchain or bitcoin to their name are contributing to the unregulated wild west feeling of bitcoin trading and possibly impeding the value of non-currency blockchain projects.
What are your thoughts? How does the industry begin to decouple the idea that blockchain doesn't have to mean cryptocurrency and crazy value swings? How does the market build a case for making vast amounts of our data more secure, reliable and consistent? There is a place for cryptocurrency in society, but the incredible value found in the disruptive, non-currency piece is probably best off if those terms grow independently of each other.
Ready to make my Fintech & Blockchain insight available to industry | Guinness World Record Holder | Cherie Blair Foundation Mentor Alumni | Speaker |
4yThis is a brilliant piece and well-explained. Hype has been confused for intrinsic value and has been a seemingly prevalent practice since the beginning. The lack of understanding of what Blockchain or Bitcoin does not discern that the two are mutually exclusive. While Blockchain can survive without Bitcoin, Bitcoin wouldn’t be able to exist without Blockchain. Education is key to make the distinction between these two terms clearer. I think if investors are aware of the difference between Bitcoin and Blockchain they would not reprimand Blockchain firms so punitively. Some people say the word ‘Blockchain’ because it sounds cool not because they know what it means.