Mr. Ben Bernanke, former Federal Reserve Chairman Ben Bernanke, revealed that in the future bit coins will be hindered by government-led development. On the other hand, I showed interest in the technology attached to bit coins, block chains.
Mr. Bernanke attended this week Monday as a special guest at Ripple sponsored "SWELL" hosting virtual currency XRP. In a conference, he said, "It is clear that virtual currency and electronic money will improve the current international remittance process." Mr. Bernanke believes that bit coins are intended to change for the dollar and the yen in the legal currency and foresees that this attempt will fail and finally bit coins are brought to light by the government's regulation and intervention, I said. On the other hand, unlike bit coins, it also suggests that virtual currencies aiming for complementary positions in existing financial systems have potential.
He also makes remarks to Bitcoin in 2013, but it is quite different from the view at this conference. Mr. Bernanke said that "long-term development will be achieved if bit coins can innovate repeatedly and build fast, secure, efficient remittance processing".
Swiss major bank UBS announced a report targeting bit coins last week and as well as Mr. Bernanke put a question mark on the future potential of the bit coin itself. However, regarding block chain technology, it is expected to be useful in a wide range of fields such as finance, healthcare and manufacturing.
Recent excitement of block chain technology has been said to be similar to the era when the Internet in the 1990s came in, while calling investors to carefully invest in related companies. In the report UBS reported that the block chain has the potential to dispel many fields in the next decade but related companies in the block chain noted that the revenue model is still unformed. Also, when investing in block chain companies, it is said that they should have a long-term investment plan.
Bit coins are taken up in major media as prices rise, and public awareness is increasing, while criticized voices are also increasing. "The bit coin remittance system wastes electricity wastefully, as financial institutions like existing visas are faster to process and lower in cost," commented Mr. Taunis Braussen, chief economist at ING Bank in Germany, ing. Bit coin implemented SegWit on the network in August of this year. In addition, the development of off-chain solutions like Lightning Network is progressing. Succeeding such a project and rebounding criticism will lead to further development in the future.
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