Some of my friends have heard of bitcoin. The thing that they hear most about bitcoin is that there’s money to be made, that some people have made money. So they also want to make money.
But bitcoin is much more than just a currency. It’s also a decentralised network and a technology called blockchain.
Bitcoin the cryptocurrency is the incentive mechanism for providing security to the network. Its value emanates from that and also the demand for it by people who either want to invest or to use it as a currency.
I would suggest that you try to educate yourself on bitcoin before you invest in it. You need to understand the risks and the competition. You also need to understand that bitcoin is only the first app on the blockchain. It may or may not survive the competition from alternative cryptocurrencies. My guess is that bitcoin will survive alongside other cryptocurrencies because they’re not all the same, they serve different purposes.
If you decide to invest then the sooner you do it the better. The price of bitcoin has been going up in the long-term but very volatile in the short-term.
The short-term is great for speculators who want quick returns.
If you decide to invest you can register with a cryptocurrency exchange such as Coinbase. Once registered you can trade bitcoin, bitcoin cash, ethereum, and litecoin.
Every time we want to exchange value, we end up talking in monetary terms. Money is the language we use when we are exchanging value.
The language of money has changed over the centuries. Before there was paper money, we used gold and other minerals. Every new form of money has addressed problems with the current form of money.
Bitcoin is the new language of value exchange. It is solving problems with the current global financial system. Bitcoin is a decentralised network and peer to peer payment system.
Every transaction between people is compromised by lack of trust. The Blockchain eliminates the need for trust. It is the trust protocol. The blockchain is a decentralised public ledger with private keys which eliminates the middleman. It is built with encryption in mind. It replaces the need for a trusted third party. For that reason, it is a threat to the traditional government and banking institutions because they have acted as the trusted third party for generations.
The blockchain takes responsibility away from the banks and every organisation which has acted as a go-between when two parties enter into a transactional relationship. Governments are looking at ways to regulate the Blockchain. There are challenges with this. The Blockchain is decentralised. It has no point of vulnerability.
It is tempting to want to follow all sorts of people on social media. You always think there’s something to gain from it. The truth is that there is something to gain. You expand your horizons. The problem is that we are now exposed to too many sources of valuable knowledge. We can be easily turned to consumers of content. I have listened to so many audio books and podcasts and they are all very brilliant. The problem is that there is not enough time to consume every piece of good content. Not enough time. Too much of the brilliant content becomes digital noise. So how do you filter out the noise?
I think the best way to filter out the increasing noise is open a conversation with people you can provide value to. If there is direct communication then I think you can produce targeted content which helps actual people. So with this article, I hope to be able to respond to specific questions in the comments section.