While I am not an investment advisor, I have been following the cryptocurrency market since 2016 and in my opinion investing in cryptocurrency and blockchain technology may be the opportunity of a lifetime. I know a lot of people are unsure if they should take the plunge, and this is primarily because the technology is new and most people do not have deep computer knowledge to understand exactly how they work; but for a lot of those who were fortunate to understand the technology at a early stage, they are already millionaires, and a few billionaires also.
Is it too late to invest in Bitcoin and other cryptocurrencies?
No, we are still at the beginning of this revolutionary change in the way that we use and store money, as well as all the changes in various sectors of society such as governance, business and person to person interaction. The main reason why people don’t understand the magnitude of changes that cryptocurrencies will bring to our day to day activities is because they are thinking to invest in the cryptocurrencies rather than the underlining technology, which it the blockchain.
What is the Blockchain?
The blockchain is a continuously growing list of records, called blocks, which are linked and secured using cryptography. Each block typically contains a cryptographic hash of the previous block, a timestamp and transaction data. To explain this in regular terms, the blockchain is a record of all the transactions, and that record is then issued out to everyone that owns a computer device and choose to be apart of the blockchain. With everyone getting a copy of the record at the same time it is almost impossible for anyone to hack and change the record on everyones computer at the simultaneously. That is what makes the technology so groundbreaking.
If you understand the blockchain fully, and start your thinking and research from the blockchain level of the technology, then you will begin to see the magnitude of change that’s coming. These changes have only barely begun, the ability to exchange value over the internet and across international borders at almost $0 cost is not a small thing.
Know with all that I have said here, I hope this was of some help for anyone out there trying to decide if they should invest in cryptocurrencies or not. And remember, cryptocurrency is just the top layer of the technology, to understand what the technology can really do, you have to focus on the potential of the blockchain.
Photo by bruce mars on Unsplash.
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