The Vast Applications of Blockchain Technology Brings Along as Much Hype
There is definitely a lot of hype surrounding blockchain technology. In fact it has been demonstrated that companies incorporating some forms of blockchain technology into their operations are generally able to garner more support and investments. This is also helped by the fact that the applications for the blockchain technology are massive from fintech to cloud storage, forecasting, education, music, and so on. Furthermore, the blockchain revolution is expected to be the current times’ dotcom revolution and many are eager to jump on board early to ride the wave of phenomenal growth. The success of bitcoin’s early investors further spurs this hype.
The Chinese Government Ban on Cryptocurrency Trading and Initial Coin Offerings (ICOs)
The sentiments of the Chinese government are more conservative towards investments related to cryptocurrencies, which are backed by blockchain technology. To manage the associated financial risks, the Chinese government has blocked websites and platforms related to cryptocurrency trading and ICOs. At the same time, this helps with controlling the outflow of money from China.
Crackdown on a Crypto-Related Pyramid Scheme in China that is Laced with the Latest Buzzwords Including Blockchain Technology
Jinan, Shandong Province, China (from CitiesTips.com)
The Chinese authorities have just shut down a RMB300 million operations in yet another one of the many crypto-related investment frauds that are mushrooming all around their country. This time it’s the arrest of more than 10 suspects at Jinan, Shangdong located in eastern China linked to a crypto-related pyramid scheme. Capitalizing on the hype with blockchain technology, this latest clampdown was on a so-called decentralized peer-to-peer platform utilizing blockchain technology, which in reality is an e-commerce platform. In addition, the perpetrators also utilized buzzwords such as “big data,” “One Belt One Road,” “big data,” “poverty alleviation,” and “western development.”
The Vulnerable Youths
It is important to note that a significant number of victims in this clampdown comprises mostly of students. The perpetrators promoted a five-tier hierarchy model based on a rebate system with investments being exchanged for memberships. And apparently with the different levels of memberships, different levels of returns in dividends and shares will be delivered.
Difference Between Disruptive Technology and Foundational Technology
It would be good for the enthusiastic and anxious investor to understand that blockchain technology is more of a foundational technology than a disruptive technology. This means that while its impact will be huge, its adoption will be slow and gradual. It has very much been likened with the establishment of the TCP/IP (transmission control protocol/internet protocol) in distributed computer networking technology. With this as a central understanding, investments need to be planned strategically.
