(Photo by Omar Marques/SOPA Images/LightRocket via Getty Images) IBM is a better bet than Bitcoin on Blockchain, and holds stronger promise to change the world. And that makes IBM a better long-term investment than the digital currency.
Investors chasing after Bitcoin as its price gyrates, hoping that they will find other investors to sell to at higher prices, are confusing something: the promise of the technology behind Bitcoin, as opposed to the promise of Bitcoin as an alternative form of money. Without doubt, the technology behind Bitcoin, called blockchain, has the potential to change capitalism, by bringing efficiency, transparency, and accurate recording to everyday transactions.
Bitcoin as an alternative to national currencies has the potential to change capitalism, too, by democratizing transactions, eliminating corruption, and shifting power from central and commercial banks to the people. That’s why I have called it “people’s currency” in a previous piece here.
The trouble is that both promises are expected to face stiff opposition from economic elites. Using blockchain technology to fight corruption – which holds most emerging economies back from becoming developed — is expected to face the opposition of the local elites that benefit from corruption.
And the use of Bitcoin as an alternative to national currencies is already facing stiff resistance by central banks and commercial banks. That’s bad news for Bitcoin investors, as banks can find ways to slow down the demand for Bitcoin, taming any further price gains and occasionally crushing it, as the Chinese government did last September. Read more from forbes.com…
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