Mowat thinks Blockchain is an inefficient way to conduct business transactions. He explained that blockchain is energy consuming and expensive. He says that blockchain is 99 percent hype.
Blockchain Application in the Finance Sector
When asked about the potential of application of Blockchain technology in the financial sector by one of the summit attendee, Mowat gave a very controversial answer. Also, he says that blockchain is a very inefficient way of recording transactions on a ledger. He referred to allegations that one-time bitcoin mining used more energy that Austria as a whole.
He continued saying there is no way of saying cryptocurrencies are bad and blockchain is good as many financial experts assume. Movat said he does not trust the blockchain technology. He said he happy with the national depository and is happy too with the banking system. He asserted that blockchain technology is 99 percent hype.
These statements from Adrian Movat created a tensed environment in the summit room as many attendees sat and wondered. Certainly, not everybody would appreciate changes especially traditional financial elites like Adrian Movat. However, for an industry that has proven its worthiness like blockchain, it is rather unfair to call it hype.
Why Adrian Movat Take On Blockchain Is Wrong?
Just like any other technology that ushered in modern civilization, Blockchain technology is still in the refining stage. Just like the World Wide Web in the early 90s, Blockchain will stabilize and find thousands of applications. There are very many anti blockchain crusaders who are against this technology or its progress.
With the current achievement, blockchain went through alone, it is correct to say blockchain is a breakthrough technology. Consider the numerous cases of successful applications of blockchain technology in cryptocurrency, healthcare, research, and governance. It would sound more appealing if Movat criticized some particular cryptocurrencies rather than blockchain technology itself.
“The blockchain is a distributed network that solves all the problems that we have of finance, but more broadly, it’s like a philosophy. It’s a way of life.” American Writer, Mike Cernovich.
It is certainly weird the Chief Asian and Emerging Markets Equity Strategist, Managing Director at J.P. Morgan has no clue on the blockchain. JP Morgan, the bank where Movat spent most of career at has active blockchain investments.
At this time it is easier to deduce that there is more global support for blockchain than against it. This is justified by the recent involvement of major hi-tech companies such as Microsoft and IBM with blockchain technology.
Maybe cryptocurrency might still be raw and unstable but blockchain has prevented its worth for a long time already. Companies such as Ripple uses blockchain technology top transfer billions of dollars across the world everyday cheaply and efficiently. The blockchain is being used by some agencies of the United Nations help improve in fundraising for the UN.
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