Much has been written about the meteoric and sensational rise of cryptocurrencies, primarily Bitcoin and its ‘legitimizer’ the blockchain.
When Bitcoin burst on to our collective radars in 2013; well maybe not everyone’s; 1 Bitcoin bought 1 pizza. Today that same Bitcoin has a traded value of A$8274.38. Wish I’d bought a couple of 0000 back then given a pizza is; give or take a slice; A$5
However, the future of Bitcoin might not be in the digital currency aspect of it, but in the block-chain technology, it uses to validate transactions. Experts now claim that the volatility of Bitcoin will lead to a downfall, but the technology will be used in different sectors. As we go to publication Bitcoin took a 20% haircut on negative sentiment to finish the day at circa A$6700
By design, the blockchain is a decentralized technology which allows different computers to jointly manage the database that records all transactions.
This removes the need for a central authority, thus government intervention in banking can be practically removed in order to benefit the consumers of such banking services. It saves time and resources for the bank whilst providing assurance to consumers that all transactions on the block-chain are right and verified.
So, will Bitcoins replace dollars tomorrow? Unlikely, but maybe the technology will change banking forever.
Walden Siew – Senior News Editor at LinkedIn recently penned an article on Bitcoin Bashing which to be fair shared differing “experts” opinions on where the markets headed for Bitcoin and other fledgling crypto’s.
As an ill-informed but interested investor generally, I think if JPMorgan have created and open sourced two very important pieces of blockchain software I’ll be following the technology rather than the (virtual) currency.
It seems no matter what business you are involved in today, they each have their own share of disruptors, think iSelect, Youi.com or even Bunnings. It doesn’t pay to put your head in the sand and think they’ll go away. Think about how to get involved in your own unique way; that way we’ll all survive….well maybe not trying to sell pizza from a $1100 psm retail shop in Paddington.