Thursday, January 24, 2019

BCG Digital Ventures CEO says he believes Bitcoin will go to zero during CNBC debate in Davos

Jeff Schumacher, the founder of BCG Digital Ventures, expressed his belief that Bitcoin could crash completely during a panel held in Davos, hosted by CNBC.

Bitcoin as a currency could fail, but blockchain technology will prevail

“I do believe it will go to zero. I think it’s a great technology but I don’t believe it’s a currency. It’s not based on anything,” said Schumacher.

This comes after the cryptocurrency market has suffered substantial losses ($480 billion) in 2018.

However, Schumacher is a strong proponent of distributed ledger technology and a heavy investor in blockchain-based ventures.

He believes the industry has a bright future, as developers are now focused on creating “open decentralized systems,” the next generation infrastructure on which businesses will run on.

Other participants in the CNBC panel included 500 Startups Partner Edith Yeung, and Brad Garlinghouse, CEO of Ripple, who embraced Schumacher’s views about the brilliance of blockchain technology.

Glenn Hutchins, the co-founder of  Silver Lake Partners, said he doesn’t consider Bitcoin as a currency, but it could become a great medium of storage in the future.

Hutchins said:

“It might be that the role of bitcoin in the system could be to bring value back, to hold your value there while you have tokens that have other use cases that you aren’t using at the moment. I am much less interested in investing around bitcoin as a currency unit or a currency equivalent, or even the blockchain as an accounting ledger. I am thinking much more about the protocols. In other words, what is the underlying protocol going to do as a consequence of which, which tokens are valuable or not.”

Usability will lead to mainstream adoption

Talking about blockchain’s mainstream adoption, panelists put a timeframe of 3-5 years until the technology takes off.

Yeung believes that banking the unbanked could be the use case that would drive blockchain adoption.

She believes that crypto adoption could emerge quickly in developing Asian countries with poor banking infrastructure. As the access to credit cards in the region is limited, blockchain-based payments could turn out to be the ideal substitute.

Hutchins noted that the essence lies on usability and not the technical aspects of a blockchain.

The distributed ledger technology is still nascent, and everyone concentrates on how to improve protocols, transactional capacity or implementing additional layers like the Lightning Network.

However, real adoption will be achieved once we start to use the blockchain without realizing it.

He added:

“Eventually what’s going to happen is you are going to put something of value in, something of value will come out the other side and you are not going to care what the underlying technology is.”

The crypto community reacted on the announcement of the news, with many Bitcoin supporters saying that Schumacher’s negative opinion should be seen as a strong signal to buy.

Cryptocurrencies reached their all-time highs in December 2017, only a few months after JP Morgan’s CEO, Jamie Dimon called Bitcoin “a fraud.”

BCG Digital Ventures CEO says he believes Bitcoin will go to zero during CNBC debate in Davos was originally found on Cryptocurrency News | Blockchain News | Bitcoin News |

A Blockchain is a growing list of records, called blocks, which are linked using cryptography. Cryptography is the practice and study of techniques for secure communication in the presence of third party adversaries. Cryptocurrency is a digital currency that uses encryption (cryptography) to regulate the generation of currency and verify the transfer of funds, independently of a central bank.
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