The Davosification of the Blockchain

This week, global leaders meet in Davos, Switzerland to discuss the world economy. The blockchain is firmly on the agenda. As such, 730GMT have barely been able to concentrate on their operations for the deafening sound of big money’s heavy boots marching into cryptocurrency.

Ideological Antitheses

A conflict has thus arisen. Ideologically, cryptocurrencies were envisaged with the sole purpose of subverting big money and global financial regulation. The movement aimed to circumvent large banks, free humanity from the questionable ethics of big finance, and transcend national borders.

In the words of Bitcoin’s elusive founder, Satoshi Nakamoto: ‘’ A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution.’’

Accordingly, Jamie Dimon, JP Morgan’s CEO, labelled the movement ‘’a fraud’’. Alarmingly, he has subsequently retracted this statement.

Over the past few months, leveraged financial instruments have been introduced into the Bitcoin marketplace. In the coming months, exchanges hope to expand these services beyond Bitcoin and into other currencies such as Litecoin. Nasdaq has also said it would like to serve a slice of the pie.

Those in power clearly do not wish to relinquish it. Cries for both regulation on the one hand, and; intermediation on the other, offer insights into their likely methods of attack. One can sense an innate fear among the Davos old guard that they may soon become surplus to the requirements of a global digital populous.

Practical Synthesis

However, 730GMT believe that the combination of old money of Davos with new may offer certain propitious outcomes. Not least, the legitimacy afforded to the movement will undoubtedly encourage further mainstream adoption of the currency. An influx of funds could also help resolve technical and liquidity concerns.

Therefore we urge the old guard to approach the blockchain with good manners and good faith. Cryptocurrencies have, and always shall be, of and for the people. Long may their deserved rise to global prominence continue.