Coindesk recently published an article entitled “Bitcoin Hits 5-Month High Following Fed Chair Powell’s Privacy Praise”. This was big news for the cryptocurrency industry. It was not just about the mention of privacy. Whether Bitcoin is the best privacy solution can be debated. Each day more investors realized that Bitcoin is a secure, trusted decentralized ledger. Issues about privacy and other matters will probably apply to most consumers through a second layer solution.
The real issue was that Powell mentioned Bitcoin at all. And in a positive light no less. Those who are experts in the underlying technology knew this day was coming. It’s obvious. Most of the largest U.S. firms have already invested money into exploring blockchain. Companies like IBM, Amazon and Oracle are leading the way. Other interesting projects include things like Samsung developing a phone with a crypto wallet built in. And of course there is Facebook’s Libra. All of these things represent clear indications that blockchain has already been accepted by the organizations that run the global economy.
Blockchain has taken the world by storm because of its economic benefits. It has the power to transform supply chains and logistics. Managers will find increasingly greater opportunities in the years ahead. Business networking will as well. At this point, it’s probably important to state that blockchain technology and cryptocurrencies are not the same thing. Cryptos run on blockchains. They are dependent on the underlying decentralized technology. In contrast, blockchain technology is being explored by corporations for both the private applications of their internal operations and to connect to the greater economy.
Powell’s comments about the importance of privacy to U.S. citizens illustrates how cryptocurrencies are in themselves an important innovation. Both blockchain and cryptocurrencies will become impactful in their own right. Blockchain for its efficient distribution of goods and services, and cryptos for their consumer empowerment.
Consumers are the ones who drive the economy. They are the ones who need to be protected in terms of their decision making power. Cryptocurrencies would establish this as an absolute aspect of the digital age. Presently, consumers are subject to how their information is used and to their financial providers. Cryptocurrencies are already being developed to make it easier for users to control their information and decentralize financing. Actually, DeFi is among the most discussed topics in crypto today.
