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China Renaissance CEO: Blockchain More Important Than Bitcoin

The head of a Chinese investment bank says he believes bitcoin’s underlying technology is more important than the cryptocurrency itself.

Fan Bao, the CEO of China Renaissance, said in an interview with CNBC that while bitcoin’s market may be a bullish one, he believes that underlying blockchain tech is more attractive and “probably the most disruptive technology…in the financial services industry.”

“I’m a strong believer in blockchain in terms of its wider application in our industry,” he added.

His comments came after bitcoin reached another all-time high over $6,100 last week, followed by a few days’ fallback to around $5,500 as of press time. Yet at the same time, they come amid a range of finance-related applications for the tech, particularly around capital markets.

As reported by CoinDesk, Russia’s National Securities Depository (NSD) has just issued the first-ever live bond at $10 million using smart contracts and the open-source Hyperledger Fabric blockchain. And Hong Kong Stock Exchange is also on its pace launching a private market for smaller firms interested in developing blockchain applications to explore more use cases.

Elsewhere in the interview, Bao also stressed in general that the Chinese government has taken a liberal approach towards innovations with its open market policing.

In fact, in a most recent announcement, the China State Government suggested that blockchain should be applied to establish a credibility system for the country’s supply chain industry, signaling official support for development around the tech.

Image via YouTube

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at news@coindesk.com.

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.

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Saudi Prince Al-Waleed: Bitcoin Is 'Going to Implode'

Saudi Prince Al-Waleed bin Talal sharply criticized bitcoin during an appearance on CNBC today, saying that he agrees with JPMorgan CEO Jamie Dimon’s assessment that the cryptocurrency is a “fraud.”

“I just don’t believe in this bitcoin thing,” Al-Waleed said, according to a transcript published by CNBC. “I think it’s just going to implode one day. It’s Enron in the making.”

When asked about the specific comparison between bitcoin and the infamous American energy company that fell apart in the early 2000s amid revelations of massive accounting fraud, Al-Waleed reiterated his position that he “just [doesn’t] believe in bitcoin completely.”

Al-Waleed went on to say:

“It doesn’t make sense. This thing is not regulated. It’s not under control. It’s not under the supervision [of] any federal – elect – United States Federal Reserve or any other central bank. I don’t believe in this whole thing at all. I think it’s going to implode.”

It was then that Al-Waleed – a Saudi royal family member who, as head of the Kingdom Holding Company, has an estimated net worth of more than $17 billion – said he agreed with Dimon, who issued the now-infamous remark last month that he believes that bitcoin “is a fraud.

Dimon – whose bank is a backer of blockchain-related initiatives like the Enterprise Ethereum Foundation – has since doubled down on those remarks, predicting that governments would begin targeting the cryptocurrency.

Image via CBS/YouTube

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at news@coindesk.com.

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.

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Investor Doug Casey: Bitcoin May Be Money, But It Still Might Fail

Investor and anarcho-capitalist Doug Casey recently argued that bitcoin qualifies as money – even he’s not sure it’ll last in the long term.

In an interview published yesterday, the Casey Research founder discussed his viewpoints behind bitcoin. During the chat, he noted that he first got into bitcoin back when it was valued at around $13, thanks to a gift of a physical bitcoin he received.

Casey notably argued that bitcoin meets the characteristics defined by the Greek philosopher Aristotle. Namely, that it is divisible, durable, convenient to use (in some circumstances) and consistent, according to Casey. At the same time, Casey returned to a belief that he previously held but now argues is wrong: that bitcoin has no “use value.”

He explained in the interview.

“If you have a million US dollars and nobody accepts them, they have no use in and of themselves. They’re just unsecured liabilities of a bankrupt government. Like a million Zimbabwe dollars. And a fiat currency is easily destroyed by its issuer. The things are burning matches. They have half-lives, like radioactive elements. And I said that was the problem with bitcoin. But I was wrong about that.”

Going on to call bitcoin “an excellent transfer device” that sits outside of the traditional banking system, Casey said that his original argument against bitcoin’s use value was invalid.

“So, this is the use value of bitcoin. It allows you to transfer something that is accepted as money outside of the banking system, and outside of fiat money currencies,” he said.

However, Casey was less bullish on the long-term prospects of the cryptocurrency. He argued that while he believes that bitcoin meets the conditions to serve as a form of money, this state of affairs won’t last forever.

“The bottom line, bitcoin passes the medium of exchange test for the moment and store of value test for the moment. So you can definitely say it’s money – for the moment,” he said, adding:

“But so’s the Argentine peso. I have little confidence bitcoin will be here say five years from now.”

Image via Flickr

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at [email protected].

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.