First I’d like to start off by saying I am not a financial advisor and everything wrote is the personal opinion of myself. With that said, something that I have become pretty passionate about lately is cryptocurrencies. I have a very specific goal for this blog as just an intro to maybe more to come depending on the feedback I get. I have learned so much over the last 6-8 months that I wanted to put something out there, considering that I have really considered even creating a really inexpensive crash course on all the do’s and font’s of cryptos to help people learn from my mistakes as well as not make some massive mistakes that could cost them big. If you’d be interested in something like this then shoot me an email at email@example.com Let’s jump in.
So in this blog I want to explain a few basic concepts around cryptocurrency like, 1. the blockchain technology, 2. bitcoin hitting $1,000,000 and 3. other cryptocurrencies on the market. Let’s dive in.
The Blockchain Technology
Blockchain is the underlying power and theme for any main cryptocurrency. It’s what makes it special, unique, powerful and scalable. the blockchain technology is a massive global network of computers that jointly manage the database that records all the transactions that occur and confirm themselves each transaction to confirm it’s validity. The technology allows for decentralization. OK this is a big word but it’s not that hard to understand. Centralized powers are how most companies, governments, central banks and third party organizations are run. Usually they govern, audit and confirm the transaction of whatever is happening. It’s then regulated, taxes or given a fee and controlled by all of these rules on how things are done. For companies a few people make the rules and a few benefit from the earnings as well. Most crypto’s built on the blockchain technology decentralize any of the power back to the user or community. This technology allows the community of global communities to confirm all the transactions or anything happening in each block chain so that the whole community is accountable to itself. Let’s use an example:
Before this technology existed if you wanted to do anything in any industry you had to work through governing powers, third parties or individuals who owned the company of whatever service you were using. If it were a central bank like “Bank of America,” you’d play by their rules, on their time and on their dime. If you wanted to send money to someone in Mexico or say, Thailand, you could go into the store between their 9-5 hours, sign some papers after you got tons of personal information from your recipient, pay a good $50-60 fee and then boom a day later the person would hopefully get the money. Now through Bitcoin Cash(Bitcoin currently has much higher fees and slower sending speed), you can send 1 BCH to a friend in Japan in seconds at anytime of the day at the click of a button if you have their Bitcoin Cash wallet. No third parties, fees probably under $1 and boom, the user has back the control.
Bitcoin Hitting $1,000,000
WHAT????? Is it possible? I was just reading an article saying it will hopefully hit $1,000 by years end. Nobody imagined it going to $5,000 by the end of 2017 but it hit $20,000 with very little institutional money in it. I believe it isn’t just faith but a math equation. Their are only and will only ever be 21 million bitcoin. They have to be mined and each time one is mined it makes it significantly harder to mine the next block. On top of that it has a market cap of how much money is currently invested in the coin. As the demand rises the price rises becuase their is a limited number of coins which creates scarcity and when people have FOMO(fear of missing out) and the price rises, everyone wants in on a piece. Since you can buy a millionth of a bitcoin people can buy denominators quiet small. You could invest $10 into bitcoin and see it go to $100 in a year.
With all of that said it would take about a $16.7 trillion dollar market cap for a bitcoin to be worth $1 million dollars. So maybe it doesn’t hit the big $1 million but maybe the market cap hits $4 trillion and it be worth $250,000 in the next few years. Hey maybe the government shuts it down and its just a piece of paper you can start a fire with, all I know is don’t invest what your not willing to loose all at once and don’t invest if you don’t believe or understand it’s technology.
So many think that ICO’s and all these new cryptos are a bunch of hoaxes. What they don’t understand is that a new industry and revolution is happening through these new companies arising that are decentralizing service and value. Think of a industry that has a massive problem, lets say Taxi businesses, the customer the rider has no power, the yellow cab business is heavily lobbied and brings in big bucks for the government. It has lots of regulation, fees, licenses and rules. It’s pricy for the user who is looking to get from point A to point B at the cheapest rate and what happens? UBER. Uber comes along decentralizes bureaucracy and creates the largest workforce that is essentially self managed. The power is back to the rider and driver choosing when and where faster, easier and cheaper than ever before.
Every new company that comes out if it has a great team dedicated to a power and clear vision with a true use case for a coin and technology as well as an understanding of the value it is trying to create for users by decentralizing power then it can be a huge success. So many dismiss what they don’t understand instead of realizing that the future isn’t created by pessimists waiting for a bubble to burst but those who are willing to combat the central powers of industries that hold back true value being transacted and created.
Here is a list of a few industries that I believe need to be decentralized that will deliver value, power and control back to the user and intended benefactor:
- Real Estate
Does this mean these industries will fall apart? No, it means they will have to be reinvented on how they create and transact value becuase new arising companies will thwart the bureaucratic decisions being made to benefit the few and levy the fees and taxes of the many for the elite. All these new cryptos are a sign of hope and excitement that the distraction of wealth, self governing communities and unlimited growth to the poor and middle class is actually possible.
PS I have been considering creating a 6-8 lesson crash course for $59 dollars for those looking to get into cryptos but don’t know where to start and are having a hard time finding quality content that takes you step by step into how to find the right exchange, safe guard your online assets, trade, pick out the winner coins and ultimately grow a huge portfolio. If your interested in something like this send me a message to firstname.lastname@example.org and put in the subject line “MAKE THAT CRYPTO COURSE” and why you’d want it and that will enter you into getting first access to it, if I proceed.
Share this with a friend who may want to learn and hope you enjoyed this short and basic overview of a few crypto concepts.