The executive chairman of Alibaba Group Holding Ltd (NYSE:BABA) Jack Ma Yun is quite pleased with the promise that pulls along with the underlying technology behind the most popular cryptocurrency around the globe. The official was addressing several news reporters when he spoke about the bitcoin bubble. To avoid a misunderstanding, he asserted that there was no bubble for blockchain.
The bitcoin bubble
He has been busy attending conferences and the last one he attended was the World Intelligence Congress that was conducted on Wednesday by in Tianjin.
However, to this point in time there are still a lot of people who cannot yet tell what a bubble is all about. It begins with a rapid escalation of asset prices after which there is a contraction. It usually results from a surge in asset prices unwarranted by the fundamentals of the asset and it is the exuberant market behavior which serves as the major driving force.
It was in the previous month that bitcoin’s prices rebounded and that resulted from an injection of “serious cash.”
Ma has spent several years carrying out research on blockchain and he admits that he is rather bullish regarding blockchain. He has been speaking elaborately regarding the distributed ledger technology behind bitcoin and he believes there is quite much to be expected in the near future in terms of exciting developments.
Alibaba and its recent moves
In the previous year, the New York-listed Alibaba was rated first in blockchain patent applications around the globe and the associated data is said to have been compiled by a Chinese-language intellectual property information provider called IPRdaily.
According to the company’s insiders, Alibaba in the previous year had 43 published blockchain patent applications and it was closely followed by Bank of America which managed 33.
Blockchain presents a distributed online database of encrypted transactions that can be trusted by almost everyone .And it is also worth noting that multiple parties are in a position to share and that brings about the possibility for a full audit trail for cryptocurrency trades.
The technology plays quite a significant role towards the enhancement of the trade finance services of banks as well as in the tackling of the counterfeits in the manufacturing supply chain. Ma has all along looked at blockchain as both a privacy and a security solution and the money-making line thought has never occurred to him at any point in time.
The official is in total alignment with the fact that the social networks may not require blockchain in much of their undertakings. However, he disclosed that they are engaged in internet finance, an undertaking that compels them to process trillions in terms of the trading volume. He believes the world has reached that point where it needs to turn its attention to the blockchain failure to which matters could turn out fatal.
As per this moment in time, Ma has been able to rise the ranks to become one of the richest men in Asia. It goes without saying that his attitude regarding cryptocurrency and blockchain resonates with the recent actions of the Chinese government.