Alibaba Founder Bullish about Blockchain But Doesn't Care About Bitcoin

Jack Ma, executive chairman and founder of Chinese tech juggernaut Alibaba, stated while he's bullish about blockchain technology, Bitcoin is in a bubble.

"Blockchain is now a hot word. First, blockchain is not a bubble, but Bitcoin is a bubble. Bitcoin is just a tiny application of blockchain. Blockchain is not a huge gold mine. At least inside Alibaba, blockchain must be a solution that addresses the privacy and security issues in the digital era."

Ma expressed dissatisfaction with the manner in which the blockchain technology behind Bitcoin is being used, joining the ranks of blockchain maximalists such as Vitalik Buterin, recently stated he believes most altcoins are overvalued.

Ma's latest comments on the utility of blockchain technology mirror similar statements made in November 2017, when the Alibaba founder discussed cryptocurrencies at the "Dialogue with Jack Ma" event in Shanghai.

"We should be cautious about Bitcoin. Its underlying technology is really powerful. I pay more attention to a cashless society and the blockchain technology. And I am not shameful that I don't know about Bitcoin."

While Ma may be disappointed that blockchain technology is being used primarily in the pursuit of profits, Alibaba is not averse to leveraging the benefits it offers.

In January this year, Alibaba was rumored to have invested in a new cryptocurrency mining platform called "P2P Nodes," with the tech giant registering a number of trademarks for a new blockchain venture referred to as "'Ether Lock" and "Ethernet Lock.".

"Alibaba has been working on blockchain for several years, and when Alibaba first started investing in the blockchain, I didn't understand what blockchain was at that time, but I heard that it can solve data security and privacy issues, therefore Alibaba began to invest in blockchain".

The Alibaba cryptocurrency mining project appears to be on hold indefinitely, but mining isn't the only aspect of the blockchain ecosystem Alibaba has been investing in.

Alibaba ranked first internationally for blockchain-based patent applications over the last year and holds the most patents for blockchain technology globally, according to a joint report issued by IPRDaily and the incoPat Research Center for Innovation Index.