As Bitcoin declines, long live blockchain…

Published 26-NOV-2018 08:56 A.M.

|

2 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.


Click Here to View Latest Articles

Well, this has been a week of firsts. On the same day the Leaning Tower of Pisa was said to be straightening itself up, ASIC Chief James Shipton vowed to take the big four banks to court more often.

Who would have thought that either of those things could, or even would, happen?

Warren Buffett perhaps.

Buffett warned us about a severe decline in the value of Bitcoin. He warned that unlike buying stocks, bonds or real estate, buying bitcoin is not an investment.

"If you buy something like bitcoin or some cryptocurrency, you don't have anything that is producing anything," Buffett said in an interview with Yahoo Finance. "You're just hoping the next guy pays more. And you only feel you'll find the next guy to pay more if he thinks he's going to find someone that's going to pay more.

"You aren't investing when you do that, you're speculating."

On the anniversary of its 10th birthday, Bitcoin’s 10th year has seen a spectacular decline in its value – almost 80% since last December. Almost $965 billion since January 2018.

It seems now as if Bitcoin was no more than a get rich quick scheme (for those who got in early), not the great disruptor of financial markets it was touted to be.

There was a fastcompany.com article back in March that asked the question: Is the cryptocurrency just going to end up reenforcing the financial system it was supposed to disrupt?

It was an article that seemed to be on the money when author Douglas Rushkoff pointed out that: Bitcoin was intended to break the monopoly of the banking system over central currency and credit. But, in the end, it will turn into just another platform for the big banks to do the same old extraction they always have.

The driver behind Bitcoin – Blockchain – is already becoming an instrument of the financial services industry. Banks no longer see blockchain as the enemy at the gate, but as a technology to embrace to improve its services.

For instance, of the 26 publicly listed banks in China, 12 have already adopted blockchain technology. These banks include Bank of China, China Construction Bank and the Agriculture Bank of China. Add the privately owned China Merchants bank to the list as well.

This article gives you a comprehensive list of all banks that have adopted blockchain technology.

Here’s another article outlining five ways banks are using blockchain.

In a nutshell, we are looking at clearing and settlement facilities, payments, trade finance, identity checks and syndicated loans.
The finance sector has wholly embraced blockchain, so where does that leave Bitcoin?

Bitcoin isn’t quite dead, but the banks may well be saying: long live blockchain...



General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.

 

Discover Small Cap
Biotech Stocks

Join thousands of other Investors following our stock commentary for Free

X