Can anything compare to cryptocurrency’s meteoric ascent?
From fractions of a penny seven years ago... one bitcoin is worth $6,148.73 today.
New cryptocurrencies are now sprouting as fast as mushrooms.
Over 1,000 presently strew the landscape. More will follow.
Many — likely most — will fail time’s great test.
But according to Ray Blanco, our science and technology wizard,
the “blockchain” technology in back of them has authentic fire in it.
“It could revolutionize everything,” says Ray.
“It has the potential to disrupt almost every industry,” he adds.
Does this blockchain technology spell doom for banks? And credit cards?
With no further ado, Ray Blanco:
When bitcoin debuted a few years ago, it seemed little more than a novelty for
cryptocurrency enthusiasts.
The value of a bitcoin was a small fraction of a cent in value. Today,
one bitcoin is worth more than $5,600.
Competing currencies have also blasted off. One popular alternative, ethereum,
is up over 3,000% year to date.
There’s no question that the cryptocurrency idea has spread — and is still
spreading.
What accounts for its meteoric rise?
Bitcoin drew attention as a way to do this thing called “money” in a way that
didn’t involve central bankers or even physical access to precious metals like
gold.
Back when I first learned about bitcoin, it was still very cheap. And you could go
out and grab as much as you liked — if you were willing to do the work.
Regular money like dollars and euros is created out of “thin air,” so to speak.
The central banks do this, and it’s unpredictable when or how much. In the old
days, money creation was largely a matter of printing more bills or minting more
coins. Today, central banks do most of this money creation digitally.
There is no central anything, however, with bitcoin. The system is distributed and
transparent. And there is no unpredictability with creating new units of value, either.
That’s one of the selling factors for cryptocurrencies. They are inherently better
stores of value than the depreciating currencies we’re used to using.
But the underlying technology behind the cryptocurrency trend is the real
enabler… and that’s going to change everything.
I’m talking about blockchain technology.
Blockchain might not just be the future of money. It could revolutionize everything.
It has the potential to disrupt almost every industry.
While I expect many of today’s cryptocurrencies to fail, I also believe blockchain
technology has a bright future.
The impact on our lives could one day rival the impact the internet has made
over the past 20 years. That potential of cryptocurrencies and blockchain hasn’t
been lost on buyers of bitcoin.
A World Economic Forum report predicts that 10% of GDP will be stored on the
blockchain by 2025.
Global GDP is around $78 trillion. So we’re talking about a massive role for this
technology.
Why is blockchain technology so disruptive?
It could eliminate the need for the “middleman” with most transactions.
Blockchain-based systems can be used to transparently account for and
immutably record just about any transaction.
For example, it could allow for direct, peer-to-peer transactions that bypass the
need for banks or credit card companies. It can also fundamentally transform
the financial services industry and the way you buy stocks or bonds. You
wouldn’t need an intermediary like you do today. It could all be done directly on
a peer-to-peer basis.
In addition, blockchain can store public records, real estate titles, contracts,
patents and much more.
There will certainly be bumps in the road for this incredible new technology. It’s
like the Wild West right now, and a lot of frauds are piling onto the bandwagon
while the getting is good.
But that doesn’t mean the future isn’t blindingly bright for the blockchain. It is.
Ray is not the only blockchain booster within our close peer group of crypto currency enthusiasts.
Former hedge fund manager James Altucher says this technology is
“the most exciting thing I’ve seen since I first used the World Wide Web in 1992.”