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FEATURE –Most people have no idea about Bitcoin. What is it doing Why is it so valuable? What is blockchain? And more importantly, how does it all affect my own money and my retirement?
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Cryptocurrencies like Bitcoin and Ethereum have entered mainstream consciousness in a dramatic and disruptive way.
Many of us consider cryptocurrency to be new. However, the idea of creating a more open and accessible financial system with more privacy and lower costs dates back to the 1980s. Bitcoin was the first functional cryptocurrency, although several attempts had been made to develop more private methods of conducting financial transactions.
Initially, Bitcoin enthusiasts were a select group of early adopters, mostly programmers and technologists. Computer programmer Hal Finney was the first to download the original bitcoin software in 2009 and received 10 bitcoins for his troubles.
How does cryptocurrency work?
I don’t want you to end up in the weeds, so I’ll just provide a brief overview of how cryptocurrencies tick.
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Bitcoin and alternative cryptocurrencies are created using what is known as blockchain technology. A blockchain is a type of digital ledger made up of records called “blocks”. Blockchain software is a decentralized, distributed, usually public database that records transactions across multiple computers. Nobody can change blocks in the chain retrospectively without changing all subsequent blocks.
Blockchain isn’t limited to financial transactions either. It also doubles as a real-time general ledger for things like contracts and physical assets. Since it’s open, anyone on the blockchain can see details about each block. When a block is stamped and encrypted, changes can only be made by the person who “owns” the block.
Block owners can only access them with a unique private key. When a block is edited, the entire blockchain is updated and synchronized in real time.
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Banks and companies are taking notice of blockchain. Blockchain technology could revolutionize the financial world. It saves intermediaries, cuts costs, saves time and offers more financial privacy. Using blockchain reduces transaction complexity. For example, if you buy stocks through blockchain, your transaction will be processed in minutes, not hours. You don’t need someone to handle your stock purchase.
Even if there is nothing that is “hackproof”, the blockchain appears to be much more secure than anything else available today.
Currently, only about 0.5% of the world are using blockchain technology. However, it is ready to go mainstream very soon. Large banks, insurance and technology companies, and venture capitalists spend billions of dollars and hundreds of thousands of man hours on blockchain projects every year.
Experts estimate that switching to the blockchain ledger alone could save the banking sector up to $ 12 billion annually.
Sum it up
Cryptocurrency powered by blockchain technology can drastically change the way we do business, making even global transactions faster and more seamless.
Cryptocurrency cannot be manipulated or controlled by a central bank like paper currency. It offers more security and privacy than our current system and is in many ways more free and democratic. As technology advances, transactions on the blockchain become easier and more accessible to ordinary people.
If you are interested in blockchain technology and cryptocurrency, there are plenty of excellent YouTube videos available to help you get more detailed information about this incredible new financial alternative. There are also websites out there to help you get to grips with the more technical aspects of the blockchain. If you are considering investing in cryptocurrencies, seek advice from a financial professional who has a proven track record of blockchain experience.
Still confused? Most people are, but recent changes suggest that Bitcoin will be the next “gold” standard, the value of which will rise or fall based on its perceived value. Bitcoin’s valuation is based on speculation. Many believe that Bitcoin will continue to appreciate in value. This is not uncommon with other “bitcoins” of the past. The 17th century Dutch tulip bulb craze comes to mind.
If you’re looking to buy bitcoin, a new company recently listed on the New York Stock Exchange (COIN). Danger.
Copyright © Lyle Boss, all rights reserved.
Lyle Boss is a member of Syndicated Columnists, a national organization that advocates a fully transparent approach to money management. As an asset protection educator, he has helped thousands of seniors manage their financial retirement options. Its clients include government employees, teachers, doctors, farmers and executives, to name a few. Boss has been actively teaching advanced estate planning and wealth preservation for more than 20 years in locations like the University of Utah and in over 200 Senior Retirement Consumer Education Workshops in Utah, Idaho, and Wyoming. Boss and his wife Deanna live in South Ogden and St. George, Utah.
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