Showing posts with label distributed ledger technology. Show all posts
Showing posts with label distributed ledger technology. Show all posts

Friday, December 15, 2017

Cryptocurrency: Modern Day Gold Mine ~ Digital Millionaires or 21st Century Cyber Boom

Business and Consumer shaking hand accepting bitcoin

   Just one year ago, if you were to engage a conversation on blockchain technology, cryptocurrencies or bitcoin investment. Chances are you would have gotten the curious dog's head tilting look of confusion. 

  What is this bitcoin....block what......ledgers? Indeed, a new era of terminology has surfaced including words like:

Bitcoin decentralized mining wallet cryptocurrency dugutalMining, token, ethereum, Gas, transaction block, smart contract, digital currency, altcoin, sha-256, cryptography, wallet, fork, hardfork, softfork, hashrate, ICO Initial Coin Offering, node, private key, proof of work, proof of stake.

These are but a few of the jargons that are now immersed in discussions around the financial industry. With this just being the beginning. As the current reigning cryptocurrency "Bitcoin" rises in popularity and value. So does it's influence on the other 1300+ altcoins. As well as it's significance in the growth of this distributed ledger technology. 

Blockchain cryptocurrency transaction finance technology exchangeBlockChain, the science behind this disruptive technology. Will be the dominating mechanics in future industries. Mainly due to it's ability to provide trust behind any online digital transactions by ensuring the integrity of the data exchanged among devices without going through a third party.

The future in this technology will quite simply remain intact for years to come. It's implications as of today still has not been fully exposed. Security and trust benefits being the primary influence of this distributed ledger. 

Because of the nature of this technology, financial institutions will be able to cut cost/fees by the eliminating middle-person or third party out of the transaction process. Increasing security along the way.  Yet, blockchain will be incorporate into many other usages........with the world transforming deeply into digitization. This technology, is the perfect answer to the future Internet Of Things.

Blockchain with a network of computer linked

Banking, smart-contract, music & video distribution. Passports, birth certificates & medical records are only the tip of the iceberg within this industry.  Making this a sustainable technology worthy of a long term investment.

On to Bitcoin and it's altcoin sidekicks

In the world of Bitcoin, as of  Dec. 18, 2017 it's value has been hovering around the $19,000.00 range. 

As of Jan. 14th, 2018 $13,383.70

Only just a year ago it's was at $778.00. For those in the know, bitcoins history has been a long slow roller-coaster ride until recently. 
  • 2010 - July $0.08
  • 2011 - Feb. $1.00 in July $31.00 by Dec. $2.00 
  • 2012 - Dec. $13.00
  • 2013 - Apr. $266 June dipped $70 then $600 -$1000 
  • 2014 - Jan. $750-$1000 end the year $440-$630
  • 2015 - Mar. $200 - $500
  • 2016 - May - Nov.  $450-$780
  • 2017 - Dec. $19,697 All-time high
  • 2018 - Jan. $13.383.70 

As you can see, Bitcoin has had a rather interesting journey. I can see a few of you now......."Dude, if I only brought $500.00 worth in 2012." At today's market value that would have netted you a cool $653,845.50.          
That's where long term "buy & Hodl" investment strategy I wrote about in my last post comes into play.

Search engine for things you can buy with Bitcoin

Where is Bitcoin heading now? With 2018 is just around the corner. What strategies does one plan as the likes of Ethereum, Litecoin & a host of other altcoins beginning their ascend into the unknown. With bitcoin and it's futures giving a bit of credibility to this digital currency. Should investors take heed?

If we were to reflect on the period between April 1997 - June 2003 perhaps better known as the dot-com boom or dot-com bubble. Would it be safe to invest into other digital currencies? Or should we simply just "hodl"?

What are some of the experts saying..........?

"I think the reason people buy high, besides the fact that they are investing on emotion, is because they don't know how to value a business."
Tom Vilord, president and CEO of Wall Street Value, an investor consulting and education company.

Michael Spencer, CEO of NEX Group Plc, a London financial expert. Talking to Guy Johnson of BloombergTV, can see bitcoin’s price reaching $20,000 before reversing steeply. Spencer joins a slow growing group who believe that Bitcoin is or in a bubble

The Bitcoin industry has been rife with scams and thefts, so it's hard to believe that the currency will be able to sustain itself over the long term. It has also been linked to drug trafficking and illegal gambling. I see it as a fad and nothing more, and as more people lose real money because of the legal issues surrounding Bitcoin, I eventually see it fading from existence.
Andrew Schrage ~ Founder and CEO of Money Crashers Personal Finance
Investfly - Virtual Stock Market
Bitcoin might have an inflationary or deflationary effect. It's too early to be sure which way it might influence monetary aggregates and velocity of circulation. It could expand the de facto money supply and could increase or decrease the velocity of circulation of the supply of fiat money and near-money.  Bitcoin might bring back Gresham's Law by driving out inferior or "bad" money."
Dr. John C. Edmunds ~ National Economist and Financial Reformist

"This is a dangerous speculative bubble by any shadow or stretch of the imagination." Stephen Roach told CNBC's The Rundown. "This is a toxic concept for investors.
 Stephen Roach, Yale University senior fellow and the former Asia chairman and chief economist at investment bank Morgan Stanley.

"You need to understand how it works as an investment, how liquid it is ( can you get out when you want to), the level of risk and what can drive the price up and down. Do not invest just because a friend told you to, but to do your own research and make the decision that's right for you."
Martin Lewis ~Money Saving Expert 

Kevin O'Leary explains one big thing people don't understand about bitcoin 

Worse case scenario for  bitcoin investors........?
  • The whole world would consider Bitcoin illegal
  • You could get hacked or loose you private key
  • Other Altcoins surpassing Bitcoin in value (investors abandoning ship)
  •  Could “kill the planet” due to the amount of energy required to mine the currency.

Search engine for things you can buy with Bitcoin.  
Hundreds of Bitcoin-enabled stores and businesses.

Copyright © 2017 Andrew Hayes All Rights Reserved
DISCLOSURE: This post contains sponsored ads and I will be compensated if you make a purchase after clicking on my links.

Wednesday, October 4, 2017

BLOCKCHAIN? Understanding the Difference Between Blockchain & Distributed Ledger Technology

DISCLOSURE: This post contains sponsored ads which I will be compensated if a purchase is made after clicking on my links.

   Some may believe that there is only one (1) "Blockchain." In fact, there are a few types of blockchain depending on the application.

   We first should understand that there are technical differences between "BLOCKCHAIN" & "DISTRIBUTED LEDGER TECHNOLOGIES." as well.

   Blockchain core spotlights how data is stored & linked to each other in an sequential order represents one type of distributed ledger technology or DLT. In it's simplicity, with this technology you have a secure open source peer-2-peer network within one system, (think of it as if all these networks are within one bubble) transmitting digital records or transactions called a block. 

   The variation in this blockchain is that these sequence of blocks are "chained" without having to utilizing a middle-person whereby maximizing efficiency & cost.

 While distributed ledgers spotlights the sharing of a database throughout all validators or nodes within that network or bubble. Depending on the entity being used, DLT need not depend on such a chain nor require proof of work. 

These ledger are a type of database that are transmitted across multiple nodes. A normal database would consist of a central assembly, since we are talking DLT's, thereby these network will be decentralized.

   The details in these blocks are giving an unique cryptographic number (hash function, proof of work or provable security) and are time stamped. Even though these blocks are made public, only the owner with their own personal "private key" has admittance. Hence, they are called "Public blockchain" and are synonymous with our cryptocurrencies technologies used today.

   The Bitcoin behavior was the first to use this particular form of blockchain. Other virtual currencies (Ethereum, Litecoin, Dash, Ripple & Monero) use different procedures enabling faster transaction, better security, privacy & anonymity features yet with similar results. "Mining" adds value to each block by rewards the contributing computing capacity for each hashed sequence or chain.

      Next, you have what could easily and has been compared to as a shared database. 

   Instead we referred to as "Private blockchain." This is more of an internal based sharing ledger where one central entity is a privy to read and/or write. Where public access may not be necessary. Private blockchains can provide privacy and scalability solutions due to all the nodes (computers) being strictly controlled. As we are still talking blockchain technology, keep in mind that there are consensus mechanisms, signature verification & computation requirements.

   An alternate private blockchain called Consortiumfederated blockchain allow multiple entities within an industry to share confidential data. Useful with the likes of banks, energy companies, healthcare industry, insurance agencies. If we use the bubble description as above, just picture multiple bubbles only some having a type of bridge that interact with a specific bubble or network.

 What is Blockchain

   This technology is in it's infant just as the internet was just a little over 20 years ago. Emerging peer-2-peer usage will include data storage aka cloud storage, digital advertising, movies, music. Identity theft - digital ID.....birth certificates, passport. Eliminating the middle-person in digital or smart contracts evening avoiding voter fraud. 

   Hang on.....cause this technology is going to revolutionize multiple industries. There's a buzz surrounding this technology for a reason.

Investment Opportunities?

Copyright © 2017 Andrew Hayes WeHit All Rights Reserved

DISCLOSURE: This post contains sponsored ads which I will be compensated if a purchase is made after clicking on my links.