From the Bitcoin boom to the economic revolution

The Meteoric Rise of Cryptocurrency Bitcoin demonstrates the potential of blockchain technology, which brings a revolution in the economy – affecting everything.

The crypto-currency Bitcoin has a dizzying run. And she divides the world into believers and unbelievers. If the digital currency started in 2018 at just under $ 1,000, it went up to $ 3,000 in June and then to 4,000 in August. On Oct. 20, Bitcoin cracked $ 6,000 for the first time and is currently standing at around 6,500. Not that there was no headwind. There was plenty: Grave battles in the Bitcoin developer community about the future course – tentatively settled – the attempt by the Chinese government to gain control of the crypto universe by closing bitcoin trading platforms – failed for the time being – and finally Bitcoin tirade of mighty Wall Street banker Jamie Dimon.

You just want to know what’s going on

The technology on which Bitcoin is based is the so-called blockchain. And despite all the criticisms almost all banks rush on it. It’s “the next big thing” for the financial industry. The Swiss UBS estimates that the blockchain could bring the global economy up to an annual surplus of $ 300 to $ 400 billion by 2027. That’s why banks are so eager for the blockchain because, from their point of view, technology runs the risk of making banking without banks possible, making bankers into endangered species, perhaps even superfluous. You do not want to end up, like the polar bear on the plaice – on the one hand. On the other hand, the blockchain’s potential for the banking world itself is enormous: Expensive central control bodies in the money market would be superfluous.

Macro: World without banks?

Banks turn off their middlemen and save billions. Banking could be easier, cheaper and faster. Patrik Pohl, who deals with the issue at Deutsche Bank, told makro that Blockchain could simplify the lending business and also be used in the trading business. The Deutsche Bank is also experimenting. You just want to know what’s going on.

Internet 3.0

Ultimately, it’s about igniting the third level of the Internet. If we take a few steps back, the Internet, as the normal user has known since the turn of the millennium, is the Internet of Data. For a few years now, the Internet of Things (Internet of Things), in which different devices communicate with each other, for example, moves the smartphone app home heating. Blockchain technology, as described by Don Tapscott in his book Blockchain Revolution, is now creating the Internet of Value. The Internet of Values ​​enables economic transfers of all kinds. This goes far beyond the cryptocurrency Bitcoin. The entire financial industry, with its services such as financing, bank transfer and custody accounts, is just the tip of the iceberg. A blockchain enables the exchange of values ​​- transparent, tamper-proof, incorruptible: Notorious nodes in the blockchain network, so-called “nodes”, can now deal directly with one another – human to human, person to machine, machine to machine. The blockchain makes no difference.

ORIGINAL AUTHOR : MARKUS WOLF

About Adam Foster

Writer, Technical Support - PAB Discuss | adamfoster@pabdiscuss.com - Adam is an IT certified Support manager filled with years of experience and a package of passion for teamwork, writing and Blockchain technologies as he believes that they will give a new shape to the future. In his spare time he is an artist and musician.

View all posts by Adam Foster →