Why Blockchain Will Power The Big Banks In 2016 The full potential of Bitcoin’s intrinsic technology – blockchain – had until recently gone largely unrecognized by the entire financial technology industry as well as the established banking giants of North America, the Far East, and Britain for many years. That was until some of the more avant-garde -among the usually wood-paneled, traditional institutions looking to back the ‘next big thing’ – began coming up with gigantic sums of venture capital. This move focused the attention of everyone one Bitcoin’s role in the mainstream.
The giant investments in Bitcoin startups – with no proven track record and engaged in the development of peer-to-peer currency not backed by any central entity whatsoever – was gigantic. In some cases, the term record-breaking became applicable, as in the case of 21Inc, who raised $116 million in funding. Why the progression from black sheep to massive fintech investment?
The reason for the large investments in Bitcoin technology – and ONLY technology – last year was not because venture capital funds and fintech advocates viewed Bitcoin as a viable currency for the mainstream, but came down to the inseparable Blockchain technology. The blockchain is a transaction database shared by all nodes that participate in a system based on the Bitcoin protocol.
Hot on the heels of the interest showed by investors in providing Bitcoin technology developers with enough funding to further the cause of Blockchain, came the notion how the blockchain could be used by mainstream financial institutions in many areas of operation. Examples range from remittances to securities exchanges – and importantly – the full automation of such processes. Goldman Sachs, Barclays, JPMorgan and UBS are on the Blockchain wagon for 2016
To some people, 2015 was the year of vast investments intending to fan the […]
