San Diego State Educational Director: People Should Ditch Bitcoin, Invest In The Blockchain
What if someone told you to simply ditch Bitcoin (BTC) because it is crap and focus solely on the blockchain technology? That is what Bernhard Schroeder, an educational director at the San Diego State is begging investors to do.
In his new editorial, which was published on Forbes, he classified Bitcoin as something that is only speculative and that simply will not work out in the long term. He acknowledged that the blockchain technology is very impressive, though, and a “serious technology”, the exact opposite of what he thinks that Bitcoin is.
According to Schroeder, the main potential from the blockchain technology will not stem from cryptocurrencies, but from companies that decide to build something on top of this emergent technology.
He cited that several companies tried to use the ICO craze of 2017 in order to get money, but that most of these products simply did not work very well at all. However, there are some areas which are, in his opinion, where the companies should be focused on developing the technology more.
Schroeder affirmed that Bitcoin is all speculation. The world may yet adopt it… or not. It is simple speculation and, because of this, the value behind it is not really something that is tangible. Maybe BTC will become something useful in the future, but it is not at this time.
Blockchain solutions, however, can be used right now, according to him. For instance, he cites the example of a car company which instead of recalling all its cars during a defective recall could use the blockchain technology in order to discover exactly which cars had the problem. The distributed ledger technology already has plenty of uses, in his opinion, unlike Bitcoin.
He listed areas like digital rights management, tokenization of financial assets, digitization of real estate and customer reward programs as areas which could be heavily benefited from using the blockchain technology right now without having to wait to find out whether Bitcoin will be our savior or not.
For instance, digital rights management can be done easily with the help of the blockchain, which can be cited as a good reason for helping the companies which need to solve problems in this field.
In the most ironic move ever, BitTorrent, the popular torrent client, is trying to solve this problem letting people pay directly to the content creators using tokens. It is funny when we consider that this was one of the most popular pirate apps ever.
The tokenization of real estate is another important point to be considered. Many ICOs tried to do it, however, some of them failed to basically work very well because the companies were simply not completely in tune with the law. This may change soon, however, and will certainly revolutionize this market.
Another point made by Schroeder is that people who were close to crypto got burned last time. Some of them will be wary to invest again because they lost a lot of money. Even the people still in the industry can still get burned from the volatility of the market.
Miners, for instance, are some of the people who suffer the most during a bear market because their whole business model is based on the profits which are directly linked to the price of cryptos.
Jimmy Song Disagrees, Blockchain’s Only Proven Case Is To Be Digital Money
Obviously, some people are not really prone to agree with Schroeder. Jimmy Song, for instance, has affirmed that the blockchain is yet to prove any case that is not simply being storage of value, something that he affirms Bitcoin does very well.
According to Song, most efforts made using the distributed ledger are only wasteful at best and he does not believe that many decentralized apps will have a lot of future. He recently made a bet with Joseph Lubin, the CEO of ConsenSys and co-founder of Ethereum, pointing out that he simply does not believe that the crypto market will grow in this field.
However, despite his claims, the blockchain technology is getting famous in the world and there is nothing that people like Song can do about it. The blockchain is surely more than Bitcoin (which doesn’t mean that Schroeder is actually right).