HONG KONG—Chinese billionaire Jack Ma slipped and is clueless in his criticism of bitcoin, which he dismissed as a tool to solve social problems.

A video blogger from Decentralized TV asked: “Why are brilliant people so clueless when it comes to bitcoin?”

Jack Ma attacked the people who have been speculating on bitcoin and said he would avoid the asset class, but the blockchain technology behind bitcoin should be used to solve social issues.

Ma is executive chairman of Alibaba Group Holding Ltd which has Ant Financial Services Group, as a financial-technology affiliate. An Ant joint venture in Hong Kong launched – the same day Ma criticised Bitcoin – a cross-border remittance service that uses blockchain technology.

The remittance service is to help people send money to the Philippines at transaction fees that are much lower than what banks and other money-transfer firms charge.

The vlogger said Ma got it all wrong in his explanation of the ‘bitcoin bubble’ because Blockchain and Bitcoin go hand in hand. He said Ma got it all wrong! Watch the video here:

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Blockchain is a digital record-keeping system that enables trading in cryptocurrencies and other kinds of financial transactions.

Ma said blockchain “must be used to solve data privacy, security and sustainability issues” but that with cryptocurrencies the technology has been turned into “tools and concepts for making money.”

“It is…not right to become rich overnight by betting on blockchain,” he said. “Technology itself isn’t the bubble, but bitcoin likely is,” he added. Bitcoin multiplied in value last year but has fallen more than 50% in the year to date.

“You cannot extricate Bitcoin from Blockchain, they are one and the same my friend.” the vlogger said.

Ma also said banks were “too greedy” in charging high fees on money transfers and that Ant’s goal is to bring low-cost financial transactions to everyday people.

Source: Page 1