CNBC analyst, money manager, and Bitcoin believer Brian Kelly has recently written an article for Forbes busting the trending myth about blockchain being the disruptive force, NOT Bitcoin.
Many bankers, including former Head of US Federal Reserve Ben Bernake, are very supportive of the Blockchain technology ‘because they’ll improve payment systems.’ When Bitcoin took the spotlight though, Bernake immediately changed his tone and slammed the innovation.
Blockchain without Bitcoin replicates the same financial system already in existence.
Brian Kelly understands them though, comparing today’s bankers with the whaling captains from the mid-1800s.
“In the mid-1800’s the world’s street lights were kept alit with whale oil. Then John Rockefeller streamlined the process of refining crude oil. The whaling captains that did not recognize the change were left sailing a barren ocean in search of former riches, while Rockefeller went on to create Standard Oil, the predecessor to Exxon, Mobil, BP and Chevron,” Kelly explained for Forbes.
Bitcoin is the refined crude oil of the 21st century while Satoshi Nakamoto is the new John Rockefeller. The digital currency will eventually replace the 600-year-old traditional financial system that put the banks atop of it all. And to talk about blockchain without talking of Bitcoin is basically a fallacy.
Blockchain without Bitcoin Is NOT A Breakthrough
“Without the currency, there would be no incentive for people to spend money on the computers needed to run the Bitcoin software. Blockchain without Bitcoin replicates the same financial system already in existence. There may be some efficiency gains through sharing private distributed ledgers, but blockchain without Bitcoin is NOT one of the most important innovations in the history of finance,” Kelly added in the article.
To talk about blockchain, one must also talk about Bitcoin and cryptocurrency because that’s the only way we can achieve a ‘self-sustaining, independent financial system’.
Kelly wrote the article at a time when every bank in the world is experimenting the blockchain technology for various projects. However, all use it in the same centralized, black-boxed way in order to maintain control and remain at the center of the financial universe.