The best uses of the cryptocurrencies have to be discovered. The invention of Bitcoin and the blockchain you can compare with the internet. The blockchain is Internet 4.0. The internet is a magnificent tool, has allowed us to communicate and exchange better. “But the blockchain allows us to exchange differently. A better metaphor for the blockchain is the invention of mechanical time.” as said by Chris Berg.
So what are 3 crypthotruths?
Cryptos are owned by the crowd.
Cryptocurrencies are not owned by any government, bank, there is no middleman. People are recognizing these currencies are free of institutional shackles. This technology can allow governments to reduce the cost of service delivery, improve electoral transparency, and improve the security of government activities. The blockchain is in the middle of a hard battle in a sector filled with corruption. This technology can allow governments to reduce the cost of service delivery, improve electoral transparency, and improve the security of government activities.
The key to Crypto’s success is structure.
The success of these currencies is due to the decentralized knowledge that they allow. In cryptocurrencies, the know-how is shared, although there is not a small group of experts deciding the future of the currency. It requires a strict structure of verification through hashes and secure distribution of information to work. Believe it or not, Blockchain is already gaining a lot in industries of our everyday lives and it is closer to you than you think. For example, the healthcare industry has struggled with a solution to safely sharing and storing medical data and records. They are switching to blockchain to enable the safe storage of patient data.
Cryptos are a long way from being stable
Every day we have new cryptos coming, and others are being improved. If you want to invest, understand the volatility that’s a big part of the crypto market. You must be careful with your investment strategy. There are few pros and cons when you are investing in cryptocurrencies.
Pros for the companies are :
1. Access to funding in a quicker way versus other Methods
2. Lower cost of Capital
Pros for the investors:
1. Possible massive returns
2. Increased liquidity
Cons for the investors:
1. Based on high speculation
2. High volatility
5. Lack of quality control
Always do your own research.
And If you decide to invest you should invest in:
Blockchains are an experimental technology. It is entrepreneurial question where the blockchain can be used. Few ledgers will move onto the blockchain, some will try to move ledgers onto the blockchain and fail.Now we don’t know how the industry will react. Not everything can be used through blockchain. This process is going to be extremely disruptive. The global economy faces big changes. Industries like insurance, banking, retail, the law will change forever with cryptocurrencies.
Blockchain technology has the potential to solve several world issues that the banking industry is having today, promising radical changes. This technology promises more secure, transparent, processes; all in order to offer safer and faster services for the clients. Crowdfunding has been considered a credible means of funding start-ups and new businesses by the communal effort of many for a single, unified goal.
However, these models generally charge high transaction fees, and often some cases of understatement of funds raised arise, but beware:
- Blockchain will come to the rescue.
*Blockchain will disrupt the legal industry by providing access, storage and verification to legal documents and data. This technology will allow the public and safe access to vital documents such as court rulings, titles of ownership, and other deeds.
The ability of consumers to interact directly with producers or designers will limit the role that middlemen play in the economy. Logistics firms, however, will continue to prosper, but the advent of driverless transportation will see disruption to industry too.
The blockchain revolution is coming. It will bring economy dominated by human capitalism and greater individual autonomy. Future of blockchain technology is unclear. It was the same path when we discovered internet, we also didn’t know who it will grow. Entrepreneurs,leaders and innovators will lead the blockchain revolution . As always through a process of trial and error. Great fortunes will be lost before we know exactly how this disruption will take place.
As Tomas Edison said:
“I have not failed. I’ve just found 10.000 ways that won’t work.
Many of life’s failures are people who did not know how close they were to the success when they gave up.”
It will be the same when developing and implementing blockchain technology in every day business life. Only what can we do Is to have deeply understanding of the blockchain model and learn on our mistakes on the way.
Until next time,
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The Top 3 Cryptotruths was originally published in Data Driven Investor on Medium, where people are continuing the conversation by highlighting and responding to this story.