Mark Mobius: Blockchain Isn’t as Safe as We Think

Live Bitcoin News
Live Bitcoin News September 6, 2019
Updated 2019/09/06 at 8:36 AM
4 Min Read

Mark Mobius – a legendary investor and the founder of Mobius Capital Partners – is warning that blockchain may not be as safe as some might believe.

 Mobius: Blockchain Has Its Vulnerabilities

The idea regarding blockchain is that it’s amongst the safest forms of technology out there. Blockchain creates irrefutable evidence that transactions have occurred. They cannot be tampered with once they have been set in stone via the blockchain. The technology is allegedly more secure and much more stable than anything a standard bank can offer its clients.

Unfortunately, Mobius is looking to challenge this idea. He says that at the end of the day, while blockchain does indeed offer several benefits, it is still a man-made creation, and anything built by man can be “undone by man.” In other words, blockchain is still vulnerable and can be “broken into.”

In an interview with CNBC, the investing partner claims:

 A lot of people say, ‘blockchain can’t be broken into.’ No, it can be. Anything that’s created by man can be broken into. And it could create a big crisis… There’s a whole generation of people who have faith in the internet. They have faith in these cryptocurrencies. That’s all it takes. People believe in the U.S. dollar because they have faith that with dollars in their hands, they can buy something.

One of the big problems with bitcoin and other forms of crypto – according to Mobius – is that since many of them are not centralized, they’re quite difficult to regulate. As most forms of fiat are issued by central banks, cryptocurrencies aren’t. There’s no central figure or agency pulling the strings or deciding what should occur within the space. Thus, bitcoin and cryptocurrencies tend to play by their own rules, making them harder to handle by financial authorities.

For the most part, Mobius is convinced that crypto and blockchain remain very risky (and sketchy) ventures, and he’s confident that people will “see the light” in the coming days. He comments:

 I think people are going to begin to realize that these are very, very risky situations. And by the way, I believe blockchain is a very high-risk situation.

 Gold-Backed Crypto Might Do the Trick

At the same time, he does believe that a cryptocurrency backed by a more stable asset like gold would be a very interesting notion. He mentions:

 If there is a cryptocurrency that is really backed by gold and there is a meaningful agreement and some kind of modern thing of this connection, then this could be quite interesting.

Gold, for the most part, is considered one of the most stable assets available to investors. It’s designed to remain strong throughout economic turmoil and has added to its price (roughly $200 or $300) over the past 12 months despite several harsh conditions related to the U.S.-China trade war.

The post Mark Mobius: Blockchain Isn’t as Safe as We Think appeared first on Live Bitcoin News.

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