For those who are still watching the show..!!
Bitcoin phenomenon has taken the financial world by a storm. The year 2017 is about to end but this year will be known as the year when Cryptocurrency boom has occurred. We have seen lot many things happening this year in crypto space. There were some good news and bad news both but at the end of the year what became certain was that Cryptocurrencies are here to stay. They will become more and more mainstream in coming years and obviously, the financial setup will be disrupted by this new cutting edge technology.
So whats there in it. Why must we all bother about it? We have an opportunity. An opportunity of our lifetime. We have seen how the price of bitcoin has soared from 1000$ to 20000$. It's like investing in real estate and getting similar returns in 5-10 years but the difference here is that returns are coming in 1 year and not 5-10 years. This exponential growth has created doubts in the minds of many and people are divided into 2 groups.
Who are telling its a bubble and are skeptical about its future and are standing in the sidelines and only discouraging people.
Another group of people are those who have identified this opportunity and are not waiting for others confirmation. They have invested and have reaped exponential returns when skeptics are still doubting and shouting against it.
It's up to an individual to decide in which side of the game he or she wants to be. It hardly matters if its a bubble or not what matters is whether you are prepared or not? Or else in my opinion crossing road is also risky. So let me help you all with some very basic doubts which are there in your mind which may help you come over your fears and embrace this Roller coaster ride of the millennium. I have prepared one presentation which will be available on Youtube as well within some time with my explanation on whatever we are discussing today over here. So let's start...
Blockchain technology in its simplest form can be understood as the technology which keeps the ledger system public (means open to all) at the same time keeping it secure from manipulation and hacking. We can understand this with an example. Let's say I have paid 100 dollar to my friend who is residing in Mumbai from my residence location Raipur.In this transaction, 3 parties are involved. The first party is myself, second is my friend and third is a bank. I have initiated one transaction of transferring 1000 Rs to my friend by online banking app and a transaction is created. This transaction is now verified and then registered in the ledger system of the bank and the amount is now debited from my account and is credited to my friend's account. What happened in this whole process is not actual money transfer but only change in records. The amount which was previously shown on my account is now showing in my friends account that's it.
If by any means this system of recording ledger is hacked by a hacker he can create havoc in the system. Also, lets say if bank one day decided that it want to send this much amount of money from one customer account to another and if the government supports that. There is no one in this world who can stop this from happening because our money in actuality is in their hands. The system which is keeping records of all the transactions is centralized and is in control of few people who are responsible and authorized for this. These are however made secure by various methods but still, no security ever is foolproof.
We all remember the crises of 2008 which was the result of few top in command executives of major banks and these banks were bailed out again by public money only. Blockchain has changed the game. Now the ledger record keeping System is decentralized and no single bank or government has authority to do anything with your money other than you. Only two parties will ever be involved in this transaction sender and the recipient that's it. One major challenge of which one may think now is the safety of the record, how that can be insured?? Well, the answer to that is in blockchain technology.If any hacker wants to hack the system and want to do some changes in one of the given entry then that hacker has to change each and every transaction in the block which is practically impossible even all the worlds super computers are alligned and is given a task of changing just one ledger entry they will not be able to do that because every transaction is cryptographically coded with complex problems which when solved any entries can be recorded in the system and hacking such system envolving such energy and resources will not be a fruitful exercise for any hacker. So in short hacking a blockchain system is not an economically profitable idea leave any single hacker not even big government bodies with huge resources will not engage in such tasks. I hope this has clarified the concept of the blockchain. The reason its important is because it is here to stay and grow as it has immense disruptive potential.
Now, lets discuss cryptocurrencies. These are the money of the future. These currencies are special as these are results of blockchain technology implemented to improve money transaction system !! These are money which will work on blockchain principles totally decentralized in nature. More and more people are understanding the value behind it which is causing massive valuation increase in this Cryptocurrencies. We have more than 1000 cryptocurrencies in market and their numbers are growing but the major ones are Bitcoin, Ripple, Ethereum, Litecoin, Dash etc.
2017 is the year when people have opened their eyes towards cryptocurrencies and it has started getting boost in their value but still its in a very nascent stage at the time of writing this total valuation of cryptocurrencies available in the market is around 480 Billion $ which is only equivalent to market capitalization of Amazon and still less than Apple. So you can understand that the global money market is in trillions of Dollars and Cryptocurrencies are like babies who are just born. From past 1-2 years returns given by cryptocurrencies are many times more than any traditional asset class like Gold, Stocks and Bonds. Anyone who has invested in Bitcoin in 2010 will now be in the category of millionaires and those who are investing now will obviously see their future the same or if not same will earn huge returns at least.
Out of all the cryptocurrencies the most famous, most popular and most valued is the Bitcoin. It is the big daddy of cryptocurrencies with a market capitalisation of more than half. That's the reason all other cryptocurrencies are called as Alt coins as alternate cryptocurrencies. It has given returns history has never seen anyone who has invested in Bitcoin 2-3 years back will not have to work for their living again. Bitcoin is where everything started. Satoshi Nakamoto has done which has never happened in the history of mankind. So every investor who is new or old, seasoned or novices will have Bitcoin in their portfolio. In the year 2017 only it has grown nearly 20 times.
So all those new bitcoin enthusiasts, if you want to learn more about it there are some resources for you. The first thing which you all are doing because of which you might have landed over here is by doing Google. There are many things you can get in Google but information is mostly unorganized. The second thing is to visit www.coinmarketcap.com regularly so that you can have idea about the movement of prices of various cryptocurrencies. My personal favorite is www.cryptocompare.com but for first timers coinmarketcap is good as its neat and simple. If you guys like reading then read the best book I think which is ever written on Bitcoin is by Nathaniel poper"The digital gold". I have also suggested one documentary which you can check out on Youtube.
Finally for getting more information on this phenomenon you can even subscribe the newsletter on my website "www.cryptonium.info"
Will see you there..!!