Speaking during the 2nd World Intelligence conference held in Tianjin, China, Jack Ma said that he strongly believes that blockchain technology is not a bubble, but it’s just a matter of time before the Bitcoin bubble bursts.
The Alibaba board chair said that he has been researching blockchain for years, and believes strongly in its potential to address issues of data privacy and security for society at all levels – governments, corporations and individuals – in an “era of big data.”
Blockchain as a Value Creator
Ma used most of his time to explain to people that blockchain had been construed as a huge gold mine, but this isn’t the case. Instead, he stressed the need to use blockchain technology to seek solutions for data and privacy security, in a bid to create better values for society. Ma explained:
Blockchain can provide a lot for governments, enterprises and average people, which should be its true value and not a money-making technology.
Ma told the participants that after many years of studying and developing an understanding of blockchain technology, he realized its importance when he heard it could offer solutions for issues of privacy and security. Security is the top priority of Alibaba, which has a considerable trading volume – in the trillions. He explained that since his realization, Alibaba has undertaken research on blockchain, and it is now the enterprise which holds the world’s most blockchain patents.
He also explained how Alibaba has leveraged blockchain technology in several scenarios with public welfare, e-commerce and finance. Early in October 2016, Ali Cloud launched the world’s first blockchain-based email evidence repository, which allows users to synchronize and store critical data of emails to third parties. Months later in March 2017, Alibaba joined hands with PwC to explore the possibility of increasing the traceability of food products.
In the summer of 2016, Ant Financial, a subsidiary of Alibaba, introduced blockchain technology to improve accountability in its work with the Chinese charity industry.
Negative Attitude Towards Bitcoin
This is not the first time Jack Ma has spoken negatively about Bitcoin, but it is the first instance he has said it was a bubble. Cointelegraph reports that when Bitcoin was at its peak he was still wary of it.
I don’t know about Bitcoin at all. I’m particularly puzzled. Even if it can really work, the rules of global trade and the financial system will be completely changed. I don’t think we are ready. Bitcoin is not something that I want to pursue.
– Ma told Cointelegraph.
Ma joins a gang of many heavyweight figures who claim that Bitcoin is indeed a bubble. Earlier this year, Warren Buffett said Bitcoin was probably rat poison squared; Charlie Munger was even more blunt, calling it noxious and immoral, and Bill Gates said he would short it if he could.
Image Credit: Deposit Photos
Do you believe Bitcoin is a bubble? Please share with us in the comments section.