The Bitcoin phenomena!
You’ve now heard of bitcoin even from the person you least expected to know about it.
It’s a very complex system, or made to appear as such by banks, & the existing system components who do not want to let go of the power of money and currency, for good or bad reasons.
Simply put: Bitcoin is a crypto currency which is like a rebel against this existing monetary system, revolting against banks who make unfathomable money by rotating the money paid to them by their clients (us).
I saw a documentary on Bitcoin which said that every year per 100 units of a currency that you lend the bank and happily get 10–12% as interest, in the same period the bank makes a profit of about 3300% !
This will make you realize the fact that 98% of money is only virtual is probably not a myth.
The banks would mint as they’d please, and have since roman times been the one entity which never falls.
Be it the economic meltdown or any other event, the banks are fearless about such things because they simply have to go to the government and state the fact that if the banks collapse, they’d have a disastrous event in the country, if not world. Banks are at the centre of importance, & here comes cryptocurrency to render them obsolete.
The Bitcoin is just like any other collector’s item whose value is defined by its demand.
It’s basic mechanism: There are a limited number of coins, there are people ( Nodes ) who gain and share bitcoins, and there are servers which serve the purpose of facilitating transactions as required.
The more it is used, the better it’s regard. That also states that it’s price can fall catastrophically at any given time, but the probability of this event is hard to determine. And this has got nothing to do with the technology.
At any given point a person or an event can lead to masses losing interest in bitcoin and its value falling to the ground.
But there’s one tech based on which the bitcoin that won’t be going away anytime soon: BLOCKCHAIN.
I recently attended an event called cryptocurrency and blockchain conference at The Lalit, Mumbai where a lot of banks and other major tech companies were present to discuss the future possibilities & applications of Blockchain.
It really is fascinating to step out and meet so many intelligent people under one roof as I realise the more I know, the less I know!
Ignorance is DEFINITELY not bliss!
Try being super informed, it will make you rich 😉
Also, all these decision makers were waiting for the government to state their approval before investing into this technology.
The Indian Government though has not made Bitcoin illegal (yet), they do advise against it.
So in conclusion, bitcoin and crypto currency are volatile and subject to severe scrutiny while investing. Also NOW is not the time to buy, but to sell bitcoin.
Blockchain started so low that for 40,000 bitcoins, you could buy TWO PIZZAS. People started investing earlier this year in bitcoin and now the value of the coin has become ~4x of what they paid for it.
Some might say it would go much higher, but a lot of people are also selling it right now. Why ?
“When the market is scared, get greedy and invest.
When the market is greedy, Sell!” – Warren Buffet
Also recently a hacker stole $70 Million worth of bitcoin.
About the cyber security for the average user, I’ll write another post.
Blockchain is a technology with incredible security for the data in the system and is here to stay!
Any other topics you’d like me to write about, please let me know.
Be well! ✌🏼
