The end of 2017 brought a lot of change. In a strictly business sense, none was more big then the year end rise of Bitcoin. The modestly known cryptocurrency exploded on the scene, increasing the popularity of ideas such as blockchains and decentralized systems and may only increase in the year 2018. But for many, although the outrageous gains are well known (the value of Bitcoin rose form 2,000 to 15,000+ in only 6 months), the basic fundamentals of cryptocurrency are still foreign.
While the ideas are a bit complex, I will give you the absolute basics to begin the year so that if you’re interested in learning more you can have some idea of what you’re getting in to. To begin, cryptocurrency is not regulated by any government or external body. Now while this may sound scary, it’s actually not so much. According to Small Business Trends, “On blockchains, encryption guarantees the trustworthiness of a transaction, whether that’s a Bitcoin transaction or some other type. Most importantly, you’re trusting multiple sources, along with more than one form of encryption.” Currently one government body will look over a transaction on this scale for security purposes, but with so much security in place it’s just as safe if not more safe than dealing with say the stock exchange.
The overall goal of cryptocurrency is to decentralize everything. To put it simply, you’d’ be able to build and purchase various things without the need to of going through the well known big companies or governments. The goal is to make the internet more transparent and easier for everyone to access things they need.
Enter Bitcoin.
Bitcoin is seen by some to be one of a few digital currencies that people can use to purchase these services and build these products (another big one is Ethereum). Again the goal is to create a more open and transparent internet. Each corporation with cryptocurrencies do a good job of explaining their goals and why you should purchase their currency. If you’re interested you can search about the industry and check out people like The Modern Investor on Youtube.
Cryptocurrency claims to be the wave of the future and whether they are remains to be seen. With the returns their creating, I’d suggest a look though to see if it’s right for you.
