Chief of Abu Dhabi Sovereign Fund Counters Jamie Dimon’s Bitcoin Comments
As the chief executive in what is one of the world’s most significant sovereign funds, Khaldoon Al Mubarak has at least an inkling of what he is talking about.
Clash of the Titans
He has hit back against comments that were recently made by the CEO of JPMorgan, Jamie Dimon who has made multiple outbursts related to bitcoin in recent times, calling it a “fraud” that in time will “blow up.”
He also went so far as to say that he did not want to see any of his traders engaged in the cryptocurrency markets. With the upcoming release by CME Group of bitcoin futures contracts, however, if JPMorgan intends to retain clients, they will have to follow their wishes and partake in the trading of bitcoin.
Keeping an Open Mind in the Face of Innovation
Al Mubarak is the head of the Mubadala Investment Company that is based in Abu Dhabi, and while he says that he is still “on the fence” when it comes to blockchain technology and bitcoin, he urges that people possess an open mind when it comes to this topic.
When asked if he was in agreement with the views and comments that Dimon had made, Mubadala’s CEO responded in the negative. He also added he refrain from labeling it as a fraud and that time would reveal what bitcoin’s true nature. He did not rule out that it could be a fraud; he merely does not know and is keeping an open mind throughout the whole process.
He did have a belief that there is a need for firm regulation when it comes to digital currencies and blockchain technology. With the massive amounts of growth, cryptocurrencies have experienced this year there is a need for investors to execute trades in a just regulatory environment. He says that if they manage to get the regulations correct, then bitcoin could be a fantastic success story.
Use Cases for the Future
Blockchain technology has been taking the world by storm as of late, having first came to prominence with bitcoin and then in a more usable format thanks to the likes of ethereum.
In the future, it looks like there are going to be tons of uses for this technology. The latest trend has been for startups to use their form of cryptocurrency tokens utilizing the blockchain to fund their business in a non-traditional manner.
The blockchain is a distributed ledger that can record all transactions in the decentralized network involving computer devices all across the globe. This massive interconnection makes it ultra-safe, fast and easy to use. It is set to disrupt the world of finance in particular, as a lot of transaction processing companies will likely struggle with this newfound competition that has so far presented a better system of use.
Within the blockchain, transactions will usually process within a matter of ten minutes. Person A effectuates a trade by using their private key to sign the message with the input (source of the coins), the amount and the output (the address of the person receiving the bitcoin). The whole process takes roughly ten minutes, a mere fraction of a financial world dominated by the phrase, “three to five business days.”
It will then be sent out into the broader network of bitcoin where miners will verify this transaction, place it into a transaction block and then solve it. Then the recipient will have their bitcoin.