The internet is currently in a frenzy with what to think about Bitcoin. For those of us that may not know, Bitcoin is “different than any currency you’ve used before, so it’s very important to understand some key points. Unlike government-issued money that can be inflated at will, the supply of Bitcoin is mathematically limited to twenty-one million bitcoins and that can never be changed.” Digital currency like Bitcoin, Litecoin, Ethereum can be traded or purchased online and the worth of the digital coins has been skyrocketing as of late. But first a few key points.
Simply put, using digital currency in the future will take out the middleman of any transaction or interaction between two parties. A good example is Uber. No longer will you need to use the Uber app to pay your driver (and with some fees), but instead you can pay the driver instantly and the he won’t have to wait for the transaction to process when he decides to cash out. Same goes for sending money to let’s say your relatives who live overseas. They’ll be able to access their funds immediately unlike today where it may be tied up in a bank for a few days.
All this data trading takes place on the blockchain, which is a digital ledger or database that brings transactions together grouping them in a “block” which is then attached or “chained” to the previous block. Security will be at an all-time high because no matter who tries to illegally obtain your info it will be impossible due to new data being added to the blockchain forming a never-ending security blanket over your info. A bit confusing as it’s still in its infant stages, but what it means is decentralization will be taking place, removing central authorities, centralized data (Facebook/Google) and their control over us the user.
Currently, the big hurrah is the price in dollars of Bitcoin. Investors are jumping on the bandwagon as it’s worth has skyrocketed to over $17k for just one bitcoin. Many who invested early are pleasantly surprised with how things are panning out, while others feel a little late to the party. Some argue that Bitcoin has aspects of a bubble, while others believe the price of one bitcoin will someday be worth in the hundreds of thousands.
It feels like a huge gamble to risk your hard earned dollars in something that isn’t proven but just like the dotcom boom, it may be worth the wager. Twitter obviously has to chime in with their two cents ranging from college students bragging about how early they invested to economy experts warning people to stay away. Let us know what you think in the comments below.
