Jack Ma, the Chinese businessman with net assets of $42 billion, told Forbes in an interview that Bitcoin was probably a bubble. His statements come at a time when his own financial services company, Ant Financial, was launching its own blockchain-based money transfers.
Alibaba’s Jack Ma launches Blockchain-based money transfer service
Alibaba, a multinational technology group led by 53-year-old Jack Ma, has given access to Blockchain through its online payment subsidiary Ant Financial – formerly known as Ali Pay.
“Blockchain technology could change our world more than people imagine. But Bitcoin could be a bubble,” Jack Ma told reporters, adding that “traditional financial institutions serve 20 percent of people and make 80 percent of profits. New financial institutions should serve 80 percent of the people and generate 20 percent of the profits.
At the moment, there is some uncertainty in the market as the Bitcoin price has recently taken a beating. The claim that Bitcoin is a bubble has been voiced several times over the years despite a clear long-term upward trend.
Michael Hartnett, Chief Investment Strategist at Bank of America Merrill Lynch, recently wrote in a note to investors that Bitcoin was one of the “biggest bubbles in history” and burst after its peak in December.
Similar patterns years earlier
The crypto currency hype at the end of 2017 led to the highest market capitalization to date of over $800 billion at the beginning of 2018. Driven by market enthusiasm and the hype about Bitcoin futures being quoted on the world’s largest exchanges, Bitcoin reached an all-time high of nearly $20,000. As Blockchain Week New York City did not trigger any new bullish momentum, the downward pressure remains.
However, this does not necessarily signal the bursting of a bubble. A similar pattern could be found at the end of 2013, when Bitcoin’s price collapsed extremely. After BTC reached $1,000 in 2013, the price dropped to $200 due to the famous Mt Gox hack. It took nearly three years to reach that level again.
Outlook of the World Blockchain Summit – Infrastructure growing
Yesterday we were at the World Blockchain Summit in Frankfurt and could collect some interesting insights from the industry. While Bitcoin is called a bubble, the infrastructure around crypto currencies continues to grow continuously. The topic Bitcoin, Ethereum and Blockchain is known as never before. I personally found the statement of Prof. Dr. Philipp Sandner, head of the Frankfurt School Blockchain Centers, quite exciting. He said that Bitcoin is unique, because until now one had always been able to invest in companies and through Bitcoin and other crypto currencies it is possible for the first time to invest in a technology.