Where to begin, I have been aware of crypto currencies since the infamous “Bitcoins for pizza” transaction. However, as an investor, I have only been in the market since September 2017.
By nature, I am a very sceptical person, someone that wants to see feel and touch something before I believe it. However, when you see people making money and the silly returns that they are talking about, it starts to peak your interest and you can’t help but wonder what is this all about?
As any curious individual would do, I started doing some research and came to realise that this was an unbelievable opportunity! Only once before in my lifetime had I seen an opportunity of this magnitude; when I was in high school learning to program in MSDos, the internet came to being.
Back then, I realised that this new technology presented a massive opportunity to do something that had never been done before. I had one or two pretty good ideas but made the mistake of sharing these with people who had money and they used them to make even more money. That however is a story for another day!
So why is Crypto and blockchain such a big opportunity? The simple reason is because no one trusts anyone anymore.
Gone are the days where the shake of a hand, the nod of the head or a conversation would finalise a business deal or transaction. For anything to happen or go ahead these days, there needs to be a middle man. This can be in the form of a banker, lawyer or any third party that really just serves as a facilitator to confirm everyone has done what they said they would do. Essentially someone that we could do without if everyone was honest and did what they said.
So why is blockchain the answer? What the blockchain does is present us with an immutable ledger, i.e. a record of all the transactions performed that cannot be amended or corrupted once the transaction is recorded on the blockchain. Additionally, the transaction is there for everyone to see and view, at any time.
Simply speaking this means that if two people agree the terms of a contract and record this on the blockchain, once it is confirmed by the blockchain that the criteria (terms) of the contract is met, the contract will automatically execute. Thus there is no need for a third party to be paid lots of money to verify that you have met the terms of the agreement as this is done automatically. So, in practical terms, if you’re buying a house, you would deal directly with the seller. No need for the solicitor in the middle taking your money. Once you and the seller have agreed a sales price and a date, this can be registered in a blockchain contract and when the terms are met, the contract executes automatically. Yes, I have simplified this greatly, but you get the idea!
It’s this “removing of the middle man” that has the big institutions and governments worried. Just think of a world where there is no need for banks as we know it; a world where I can send you money directly and immediately from anywhere in the world. No need to wait 2 or 3 days whilst the funds go through clearing.
This is a very big change to the world as we know it and will remove the power from banks and governments as they will have no control over your money. If they have no control over your money, how will they tax you? How will they take fees from you and how can they control the value (spending power) of your money. Most importantly, how will they make money from lending you money?
The technology that has been brought to the fore, I believe has created the opportunity of a life time; not only for a new financial paradigm, but also for the opportunity of giving people back control, something that the minority who are in power won’t want to have happen.
This will essentially be a log of my thoughts and experiences along my crypto journey. A journey that I am sure will have many up’s and downs! Hopefully you will find this of interest and if I can help you to not get scammed, that would also be great!
THIS IS NOT FINANCIAL ADVICE AND ONLY MY OPINION.