Well, in the second half of 2018, it was a roller coaster ride for the most part. With Ether losing 44% of its value in just two weeks and the media speak of a bubble by Bitcoin is it possible to lose confidence in cryptography but remain bullish on the blockchain? Apparently; If business statements continue as the approval of the UBS blockchain is something to be followed. But can you really separate cryptocurrency and blockchain?
UBS confident about Blockchain, bearish on Bitcoin
The CEO of the Swiss banking investment giant UBS, Sergio Ermotti, came out with a bold claim recently. He said that blockchain was "almost a must" for business. UBS blockchain support is not new, however. Nor is their position that cryptocurrencies are risky and probably will never become traditional currencies.
However, when it comes to blockchain, UBS changes their point of view. The bank believes that blockchain technology can help companies become more efficient and reduce operating costs at all levels, from health care to finance. This implies a separation between the cryptocurrencies and the technology on which they are performed.
But is it possible to separate the two? Also, since Satoshi's original vision was to send peer-to-peer electronic payments without the need for an intermediary, UBS blockchain support could be misplaced.
Disrupt or Be Disrupted
"While we doubt that cryptocurrencies will ever become a mainstream medium of exchange, the underlying technology, blockchain, will likely have a significant impact in areas ranging from finance to production, to health care. and to public services ", wrote UBS in October 2017.
Adding that" Just as [the] Internet has transformed our lives with e-commerce, e-commerce or smartphone apps, we believe that blockchain how an infrastructure technology can fuel future disruptive technologies through distribution registers, smart contracts, tokens, or identity management. "
So, how about withdrawing the intermediary? Does the centralized authority take its taxes? UBS blockchain research recognizes a certain level of risk, even if it limits this to technological shortcomings and uncertainty about which application will benefit the industry. They do not mention whether the digital currencies will threaten the fiat, or if the central authorities will be cut off from the circuit.
Indeed, in the financial sector, UBS expects blockchain technology to have irreversible and positive effects. And UBS blockchain support does not stop at words. The bank is also investing in the search for distributed accounting books and smart contracts in its business model.
UBS currently holds a number of blockchain patents. However, despite Ermotti's bullish position, their blockchain activities are diminished by other large banks and credit card companies. The list includes American Express, BBVA, Mizuho Financial Group, Goldman Sachs, BNP and Bank of America (which is buying blockchain patents as if they expected a war). And is it an offer to upset or be interrupted? Or a defensive maneuver to protect yourself against blockchain innovation?
Blockchain and Bitcoin are the same thing
A lot of people criticize the point of view of Ermotti, considering it a convenient way to take a politically acceptable view and a secure position. Leave the door open without frightening existing customers. Others believe that more than just convenient, the point completely misses. After all, blockchain and cryptocurrency are the same thing.
Consider the Bitcoin network for a moment. The way it was created requires miners to believe that the value of the Bitcoins that are rewarded will increase over time (or at least not diminish in value). Otherwise, there is no rational reason or reason to invest in expensive mining equipment, electricity and time.
So for those like UBS who are skeptical about Bitcoin, but committed to singing the praises of Blo ckchain, they may not fully understand. In an interview with Steve Tendon of Malta member of the country's Blockchain Taskforce and author of Malta's national Blockchain strategy, he expressed his concern for points of view such as the UBS blockchain.
He argued that many regulators and institutions tried to draw a distinction between blockchain and cryptocurrencies, observing cryptography as a bad thing because of its criminal associations and scams, but blockchain as a positive technology with infinite possibilities.
"It is not possible to have an intelligent platform contract as sophisticated as the one that Ethereum has implemented today (but there will be others in the future) unless you also have a cryptocurrency that is used to" pay "for the calculation So the distinction between cryptocurrency and blockchain is really artificial: they are only two aspects of the same currency, "he said
Ermotti and the UBS team could make news with their views on processing technology. Calling "crucial and disruptive" blockchain is all right. But frowning on Bitcoin at the same time may be missing a trick.