Bitcoin has seen its value rise from a few pennies to almost $20,000 at one point, but does it have the “status quo” around American financial markets concerned? Some might say yes, and clearly, there’s been more acceptance of digital currency these days, but is it causing the disruptions that many thought would happen by this time?
There’s been
a fair amount of lip service being paid to Bitcoin these days by companies that
comprise the current financial status quo. Much of this has to do not with
their direct interest in Bitcoin, but in the blockchain, which is the
underlying infrastructure of the digital currency.
Why U.S.-Based Financial Companies
Are Investing in Blockchain Technology
It’s clear
that many U.S.-based financial companies are investigating how blockchain
technology can streamline their current work processes and create more
efficient networks to process financial transactions. The investments and
efforts of groups such as the R3 Consortium, the introduction of robust
blockchain technology resources by both new companies like Bloq, and “old
guard” companies like IBM, indicate a significant level of interest by U.S.
companies in the technology.
The sold-out
Consensus 2016: Making Blockchain Real conference in New York City was notable
for its many big-name presenters from both inside (Gavin Andresen, Vitalik
Buterin) and outside (Larry Summers, Delaware’s Governor Jack Markell) the
Bitcoin world.1 It was clear that the amount of “suits” at this conference
signaled a major shift from Bitcoin and blockchain conferences of old, which
should not be construed as a bad thing.
What Exactly Is Blockchain
Technology?
At this
point, the blockchain is two things. It refers to either a currently operating
and open distributed network that is processing Bitcoin transactions worldwide,
or to a concept that can be used by any company to build their applications on.
Many companies of all sizes have recognized the efficiencies of blockchain
technology and now want to harness this concept to power their existing
systems.
The good
news is that the ability to harness the concept of blockchain will be possible
thanks to the tools and resources being created by firms like Circle, Bloq,
Gem, and Factom. The question will be whether these applications will actually
disrupt the current “status quo” or simply be an example of rearranging the
deck chairs on the Titanic?
Will Blockchain Technology Be a
Disruptor or an Enabler?
Bitcoin is
being embraced throughout the world by countries that are seeing its potential
to not just disrupt existing financial systems but to solve existing financial
concerns such as providing banking for the unbanked, lowering transaction
costs, and making cross-border transfers easier and more efficient.
In the U.S.,
companies are having a courtship and love affair with blockchain that can lead
to solutions that either prop up their existing models or will create new
innovative ways to address the current banking and financial system. If you’re
leaving that decision up to the companies that are part of the “status quo,”
you may end up with blockchain being little more than the “new database tool”
rather than the “next internet.”
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