Bitcoin has been recently criticized by Jamie Dimon, CEO of JP Morgan Chase along with Tidjane Thiam, CEO of Credit Suisse Group AG. Thiam mentioned the virtual currency is nothing but a bubble.
But both the companies are keen on expanding their Blockchain technology for their own good along with other major players. The cynics have made their own opinions about what these institutions are carrying forth. The technology of Blockchain is utilized by JPMorgan using a platform of quorum even though interlocutor was criticizing Dimon a few months ago. But it is also noted that both the stances are not in against each other.
More importantly, Bitcoin is a part of Blockchain technologies but there are various other applications for the technology such as Ethereum. Ethereum is considered to be the second important virtual currency with the value of 28 billion dollars of them being circulated in the market and they also provide smart agreements to various users. Bitcoin does not have the ability to provide all these features since the technology are merely used just to transfer the value.
Because Bitcoins has limited features have limited features, companies owners like Thiam, Dimon and Axel Weber (UBS AG) believe that Bitcoin does not possess value that is intrinsic. However, the market analysts have a difference of opinion.
The CEO of the three companies has not been very popular in the forefront of cryptocurrency market. They believe that if the cryptocurrencies can make transactions from one person to another directly, electronically and safely, the use of worldwide banks will start to decline. There has been a difference in the opinion by the criticizers; the bankers are talking in their own version. Honestly, this might be considered as the truth when compared to the claims of the others.
However, the financial institutions will benefit from Blockchain technology as they are well aware of it. Many people suggested that the banks are criticizing that the technology is fraudulent and they are adamant about their decision.
The statements made by the public is completely against the opinion made by the banks as they consider the Blockchain technology to be in action rather than just having mere opinions. The term cryptocurrency tourist is pointed out by Lionel Laurent from Gadflys, which does not make them a fraud.
They have mentioned Bitcoin technology does not have a future and they have made the statement by clearly analyzing the difference made by other critics.
Bitcoins have surged to the value of 120 billion dollars by competing with the digital currency Ethereum. The technology formulated is sometimes mentioned in other peculiar terms.
Antony Lewis from R3 explains that the term distributed public ledger is a popular one even though it may not be used for public transaction and it is an approach to Blockchain technology.
Singapore based research director, Lewis, at a meeting held between worldwide banks and government associations are now attempting to apply the term atomic to the transactions in which the aspects like monitory money and security changes the proprietorship at the same time. The possibility of decreasing the counterparty hazard is supposed to increase the liquidity position, accelerate the processing time and cut down expenses. It is considered to be an example of virtual ledger technology that does not match with the cryptocurrencies. An R3 member, Credit Suisse, in 2016 mentioned the utilization of virtual ledgers for loans that are syndicated.
A company based innovation of Ethereum is a term used by JP Morgan after resigning from R3 to formulate different views by focusing their attempt on quorum. The executives of financial departments are not skeptical about the technology of Blockchain and the critics’ needs to note that point too. They underestimate Bitcoins since they are unaware of the differences and they are incapable of knowing the potential of virtual ledger technology.