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Crypto Currency -Making $ Cool Again
Unless you have been living under a rock for four years, chances are you have heard mention of Bitcoin. Maybe you're into BTC and the other coins making up the crypto currency revolution. Maybe you aren't that into it, but you know of it. There's a good reason for all the excitement and hype!
With its Impressive Blockchain Technology and 100 Billion $+ market capitalization, the crypto currency world emerged with Bitcoin in 2013, and asserted its dominance in the market while still in it's infancy. It proves its superiority time and time again as it outperforms the USD U S Dollar. Breaking it's own records, Bitcoin (BTC) flew by the $4,600 mark earlier this week leaving some stunned. This news of course is no surprise to the investors, who understand what it is, others call it fake, a fad, or faulty without seeking a real understanding, they shrug it off.
This article aims to help you understand a little more about crypto in general, and the impact it is already having. It is disrupting the world of finance! This information will become more and more important in the coming days, as more and more vendors are accepting Bitcoin (BTC), Ethereum (ETH), and alternative coins(ALT coins) as payment for their goods and services.
This revolutionary idea is appreciating faster than it can gain acceptance, and it is likely that it will be a part of your life whether or not it is in your investment portfolio.
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What is Crypto(Currency)?
To put it simply, it is a currency. To elaborate, it is a symbol of fiscal freedom. It is also very secure, organized, and transparent means of executing transactions. Although not actual coins like the metallic ones you might be accustomed to, bitcoin is only accessible by way of a hash key that only you possess. It is generally a string of hexadecimal numbers and letters. that are assigned to a wallet containing the bitcoin.
It is secure because it is traceable and transparent. The transactions are of low cost because of the speed and efficiency. Bitcoin is outpacing even PayPal in terms of market cap. All this made possible by blockchain technology.
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It's ALL About the Blockchain!
I will simplify this for you. Basically BlockChain is a clever name for the way transactions are recorded and data is organized within the system. To compare this with a categorization system you know, look no further than the computer and how it replaced the library's card catalog. The blockchain will affect the dollar in this way, thus improving almost every aspect of transacting, and money itself.
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The term block chain was chosen specifically because all the data (recorded transactions) entered into the system is done so on what they call blocks. Blocks are the records of the exchanges that take place in sequence for a given period. They are equal in size, and can be recalled easily because the BLOCKs are tethered or Chained together in sequence. Organized in the elegant linear formation we all call BLOCKCHAIN. They contain all the pertinent information necessary to look up any and all transactions ever taken place. It is permanent and transparent.
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Blockchain data is recorded into files called ledgers and distributed throughout the network for redundancy and verification. No central authority controls the ledgers. Copies are sent to virtually every node, which can make sense of any differences and subsequent corrections as needed. Although very different the coins are, they share these fundamental aspects. Most of them are open source, encouraging participation from a diverse audience increasing the number of those involved.
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Bitcoin is Every Bit as Real as Our Own Dollar.
Similarities
As depicted above the potential for blockchain technology is as widespread as it is efficient. Following up to those who say it is fake, I urge you to consider the similarities Bitcoin share with the USD US Dollar:
- The value is only representative and exchange media is symbolic.
- The USD is no longer backed by gold or any real currency. Legal tender is paper consisting of a proprietary blend of cotton and linen. Its value is equal to one dollar, and debt is attached to it, as it is loaned to our governments issuing body from the Federal Reserve Bank. Our government then issues the currency as equal to one dollar plus interest on that dollar.
-All exchange media is also inherently worthless. The value depicted on your bank statement is representative of your accounts worth, and not valuable on its own. The dollar is the same thing. A symbol representative of value.
- The USD is no longer backed by gold or any real currency. Legal tender is paper consisting of a proprietary blend of cotton and linen. Its value is equal to one dollar, and debt is attached to it, as it is loaned to our governments issuing body from the Federal Reserve Bank. Our government then issues the currency as equal to one dollar plus interest on that dollar.
- Bitcoin nor USD are a valuable commodity like gold, yet BTC exceeds gold in value 3x!!
Differences
- Bitcoin BTC much more efficient, reliable.
-The lack of a central authority means bitcoin is controlled by the network, unlike paper money, bitcoin isn't victim to depreciation and recession because of a lack of centralized absolute authority. The distributed ledgers of BTC allow not for the manipulation of interest rates. We know the opposite is true of the dollar. - Bitcoin exceeds the value of even gold by a factor of 3x!!
Even after climbing above 4,600 a coin, Forbes magazine aims to misrepresent bitcoin and crypto as bad investments, and warns of speculation. Many people still try and say that it is fake. They don't know enough about it. Not many fake things have the bankers using the whole," if you can't beat them, join them" truce, either.
Tech companies and some of the countries' most prominent names in banking have been meeting and discussing implementing the use of the crypto world's blockchain technology into the real market. The aim is to optimize operations and streamline the process using smart contracts, and other cost and time saving methods of the blockchain. An estimate of 20 billion in savings for the banks by 2022, they are excited to participate after success in experimentation with the blockchain.
Wall street and the banks are left with little choice if you ask me. Just last week in the news we seen that at least nine of the big players in the finance game have shown interest in adopting blockchain technology in efforts to optimize money transfer transactions, and lower their cost, as well as our cost.
Wait, WHAT?
Yeah, that's right, 9 of the world's banking giants have come together with tech firm R3 to discuss the possible ways blockchain technology can be used in the marketplace. Interested parties include JPMorgan, Statestreet UBS, Royal Bank of Scotland, BBVA, Credit Suisse, and Commonwealth bank of Australia. So no worries, this is actually a great thing! I, myself was worried at first, but it isn't anything but an opportunity.
They estimate a savings of 20 BILLION by year 2022 if they incorporate blockchain technology into their systems. While that surely makes their mouths water, I am sure that the ball is in crypto's court, because the obvious cost, is that cryptocurrency be recognized as a media for exchange in the marketplace.
This means $$$ for every one of us holding such a coin.
Wired Magazine has revealed that the London Stock Exchange, Wells Fargo, and JPMorgan have joined an initiative alongside IT vendors IBM, Intel, and Cisco known as the Open Ledger Project. Overseen by the Linux community, they aim to develop distributed ledger technology. Their choice to adopt is definitely a quiet surrender. Which is why I said this, and I will say it again...
If you can't beat them, join them!
This is true of crypto - It is here to stay. It will thrive despite any lack of belief in it. It is an entity all on its own now. Those choosing not to invest are merely hurting themselves. in 1979, an 8 dollar deposit made to Apple has made a lucky investor a 550 MILLION DOLLAR fortune.. The same has happened with bitcoin, and is likely to happen again in the altcoin markets.
You may as well say it, too. I mean I am no financial advisor or anything, but blockchain tech is here, and it deserves the hype it is getting. Research it more for yourself. You'll be glad you did!!