- IBM will beat Bitcoin in the near future.
- Bitcoin may be undermined by the technology that backs it.
On Friday 1st June, Panos Mourdoukoutas – a Professor and Chair at the Economics Department at LIU Post in New York, stated in an article that IBM makes a better bet than Bitcoin on Blockchain. He added that IBM holds a greater potential to change the world than Bitcoin. Hence, IBM makes a better long-term investment than Bitcoin.
He stated that investors who are only after purchasing Bitcoin when price spins with the hope of selling to other investors at higher prices are confused about something: the promise of the Blockchain that backs Bitcoin, as opposed to the promise of Bitcoin as an alternative form of money. Blockchain has the potential to bring accurate recording, transparency, and efficiency to everyday transactions, thereby changing capitalism. Bitcoin, as well, has the potential to change capitalism by democratizing transactions, shifting power from commercial and central banks to the people, and eliminating corruption.
Nevertheless, both of them are expected to face stiff oppositions from economic elites. Where blockchain, which fights corruption, is expected to face oppositions from the local elites that gain from corruption. Bitcoin, being alternative to fiat currencies, would face resistance by central and commercial banks.
Presently, banks can get ways of slowing down the demand for Bitcoin by taming any further price gains just like China did last year. Besides, other Bitcoin-competing cryptocurrencies can be created using Blockchain. Ether, Litecoin, and XRP etc. have already been created and a larger supply of these cryptocurrencies could eventually suppress the price of Bitcoin prices. Panos said:
“Simply put, the technology that created Bitcoin will eventually undermine it.”
Panos stated that cases like this do not affect companies that are leading in blockchain technology. David Drake, Founder and Chairman at LDJ Capital, said:
“Yes, IBM can beat Bitcoin in Fortune 100 clients that utilize centralized solutions because many solutions are more efficient, centralized vs. decentralized. Furthermore, most initial coin offerings are centralized businesses using a decentralized solution. Ether and Bitcoin are decentralized solutions without companies running them. But all others are mainly decentralized solutions in centralized businesses. So, IBM falls in the same category and certainly has some real business operations that is far more efficient than 90% of the current cryptocurrencies that don’t have an operational revenue history like IBM.”
IBM recently announced a $5.5 mln investment to create the first blockchain solutions center in Sao Paolo, Brazil. Besides, the company is currently working on more than 400 blockchain projects worldwide. IBM leads in universal quantum computing and tops all other promising technologies like Internet Security, Artificial Intelligence, and Cloud. Panos concluded:
“[All these] makes IBM a better long-term investment bet than Bitcoin.”