Who and why needed a dead cryptocurrency: blockchain versus bitcoin

Who and why needed a dead cryptocurrency: blockchain versus bitcoin

Everybody is talking about groundbreaking opportunities of blockchain technology. No wonder if Russian Post states willingness to integrate its potential into their services.

World international banks are merging into entire syndicates. Startupers from all over the world are looking for ways of implementing blockchain into mobile technologies. And venture capitalists are hunting for promising development staff.

But bitcoin cryptocurrency was put on the back burner as something unfavorable and unadapted for the market. It happened mainly due to slow process of its regulation internationally. And a constant struggle for power between significant members of the community. An excellent example is a developer Mike Hearn, who impulsively sold out all his bitcoins. 

Lately there have been a lot of people saying that bitcoin is dead.  Hearn, who from the very beginning has been saying that bitcoin is an experiment, thinks the same. The experiment has failed and there are recommendations to use PayPal and WebMoney with their peculiar currency cross rates. Hunting for bitcoin goes as planned.

Communities responded quite predictably to the statements about its failure, it caused numerous arguments. Then major media companies began a propaganda campaign regarding the inviability of cryptocurrency.  

New discussions have begun regarding blockchain without bitcoin. BitFury researched this issue, and made a comparison of blockchain types – private and public.

However in contrast with “dead” bitcoin, blockchain is beginning to establish itself as a leader and is a kind of media remedy.

Undoubtedly blockchain is a worthful technology that can be really helpful in many existent systems. Nevertheless, the buzz around distributed registers was more like an attempt to switch public attention from cryptocurrencies and idea of spare money to a certain data base.        

Moreover distributed ledger technology won’t improve the relationships between banks and their customers. In the current situation Blockchain function is inextricably connected to bitcoin. The main goal of the latter is to transform the world financial system and push out the banks.

New era of financial technologies takes its rise here. The first prototypes of financial services can tell us how it will look like (mobile applications on managing personal finances, online banking, as well as messengers with payment function).  

In case this model, where interested organizations won’t manage to replace notions, becomes reality, international stock market will be a large-scale web of off-chain solutions and will function beyond bitcoin. This is a logical development of cryptocurrency as new virtual gold. Most probably this model of stock market will arise and develop parallel to existent platforms and technologies.

In view of the foregoing it’s not difficult to guess that bitcoin is needed by those who don’t want to lose customers. Discussions that aroused in the course of “blockchain versus bitcoin” opposition imply attempts not only to block up this technology, but also to bury the idea of spare cash.

The next stage will be the development of FedCoin – federal reserve digital currency. It was discussed as early as in 2014. A late pronouncement of The People's Bank of China clearly correlates with a possibility of appearance of this currency. A country that will manage to be the first to avoid “fiat protocol” will have a chance to become a power house for the nearest future. 

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