Why exactly is Jack Ma calling Bitcoin a bubble?

One of the most famous and prominent business people in the world has just slammed Bitcoin. Jack Ma, the founder of Alibaba and the fintech company Ant Financial, has officially said that Bitcoin is a bubble.

Ma now stands in line with many business leaders who have designated Bitcoin as a bubble and as a “whim” rather than a true asset class. Jack Ma talked about the extreme volatility of Bitcoin and how the technology of blockchain can actually be used for social good.

While this may be Jack Ma’s truest opinion, there is also the speculation that his own company, Ant Financial is on its way of creating its own digital coin. Right now, Ant Financial uses blockchain-based currency for executing transfers between Hong Kong and the Philippines, which was recently reported by South China Morning Post news.

While Jack Ma may be indeed thinking of creating its own cryptocurrency so as to complement the blockchain services offered by Ant Financial and to strengthen the company’s market share in the financial world, there hasn’t been much indication that this is really going to happen.

Money Morning also reported in April that some companies are naming their coins after big tech, well-known giants in order to boost their popularity and get more funding for the ICO. However, Alibaba had nothing to do with a coin called Alibabacoin. In fact, once it was made known to Alibaba that there is such a coin, the Alibabacoin Foundation (not affiliated with Jack Ma’s Alibaba) received a restraining order.

 

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