There is a bubble in the most famous cryptocurrency in the world –Bitcoin even when the underlying technology keeps the promise of securing the overall privacy & safeguarding the security of the investors –as per the claims of the Executive Chairman of Alibaba Group Holding, Jack Ma Yun.
Ma, during a forum in the 2nd World Intelligence Congress that was held in Tianjin on Wednesday, had said that there is no bubble for the Blockchain technology, but there is a Bitcoin bubble by all means. A “bubble” in the economic sense is defined as the characterization of the rapid escalation of the given asset prices that is followed by a major contraction. A “bubble” is usually created due to a sudden surge in the prices of the assets that are unwarranted by the asset’s fundamentals & are driven by exurberant behavior of the market.
The overall prices of Bitcoin had recently rebounded in the month of April. This has occurred apparently due to the injection of some “serious cash”, as per the global reports. Ma, in his statement about the distributed ledger technology after the working of the Bitcoin cryptocurrency, claimed that personally he was quite bullish about the given Blockchain technology. He also added that Alibaba has been conducting in-depth research on the Blockchain technology for several years.
Last year, New York-listed company Alibaba had ranked 1st in the Blockchain patent applications across the globe. Alibaba had managed to publish around 43 Blockchain patent applications in 2017 which was followed by 33 applications from Bank of America.
The Blockchain technology is responsible for offering a distributed online database of several encrypted transactions that can be shared by multiple parties and trusted by everyone in the given network.