There is increasingly growing interest and buzz around bitcoin these days. You may have heard of it before or not. Either way, it is a multi-trillion-dollar financial industry that is practically flying under the radar of most people (only about 2% of the population is even aware of its existence), which makes it a prime time to get positioned before it hits the mainstream. And the time is now because cryptocurrency awareness is going viral. Even some universities are teaching classes on bitcoin, cryptocurrencies and blockchain technology!
What is Bitcoin Exactly?
Bitcoin is a digital currency (or digital money), that is electronically held, which means it is not tangible like fiat currency (dollars, euros, yen, etc.). It was created cryptographically, and thus it is a cryptocurrency. It runs on open-source software and it is not controlled by entities. It is decentralized and not governed by banks or government.
What is the Blockchain?
Blockchain technology is where bitcoin and other cryptocurrencies exist. The blockchain is also used for other applications other than cryptocurrencies, such as running smart contracts, for example. In a nutshell, the blockchain is a digital ledger that is decentralized. It stores records of all transactions that occur within it and is run by a peer-to-peer network. This means that individuals and businesses use it to transfer digital assets to each other via the Internet with no third party (i.e., banks, governments) needed.
The Importance Blockchain Technology and Investing in It
From a business perspective, blockchain technology can improve business processes and significantly lower costs. It will also allow businesses to offer more benefits of service to customers. For instance, financial institutions could use blockchain technology to improve processes for things such as settlements and insurance.
From an individual perspective, blockchain technology offers opportunities for significantly high returns on cryptocurrency investment as compared to traditional investments.
Blochchain technology and cryptocurrencies are quickly proving to be an inevitable part of the future of money and finances in the global economy. It is something that will soon become mainstream in the world financial market, and those who invest early as early adopters of this amazing innovative technology will be among the newest millionaires in the coming years and beyond.