If you’ve followed tech or business recently, I’m almost certain you would have heard the phrase “The Internet of Things.” Briefly spoken, it’s the rapid evolution of the internet into everything you can imagine, connecting everything in our lives to the WWW. It was only a matter of time before this crept into our financial lives. While the financial industry has only recently begun to evolve through the FinTech movement, Bitcoin has burst onto the world stage as a usable digital cryptocurrency. It’s every Libertarian’s dream come true.
Cryptocurrency – digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.
I mentioned that Bitcoin is every Libertarians dream come true because this technology is not owned or controlled by any state sponsor, just like the internet. The best way to describe its technology is a self-regulating, decentralized technology, which has manifested itself into a digital currency as its first application. In EASIER terms, Bitcoin is a digital alternative to regular forms of money. Through a peer-to-peer system, you’ll effectively be able to email money around the globe without using the international finance system.
Bitcoin is revolutionizing the globe with its possibilities. Most of the talk, as noted before, is for its use as a hedge versus traditional money. Another application is for it to be used as a low fee international wire system. While it can be difficult to move money around international banks, Bitcoin bypasses all of this while making your money available within a fraction of the time. Can you imagine what a benefit this can be for multinational corporations? Furthermore, as noted in the book “The Internet of Money” by Andreas Antonopoulos, he notes that there are 2 billion people on the internet and only 1 billion of them have bank accounts. This disruptive technology can open up international finance to the likes of a Kenyan farmer trying to buy supplies or to those who live under an oppressive regime. The amount of markets and opportunity this can provide is immeasurable.
I like to think of this as the Gold Standard on steroids. With today’s economic climate becoming so unpredictable, some have noted leaving the Gold Standard back in the 70’s was a mistake. Political and economic pundits have proposed reverting to it. Of course, this would be impossible for so many different reasons, one being that it would send us into a depression. That being said, if its algorithm is proven to be reliable, Bitcoin is the modern and safest way for a return to truly stable global currency. Its technology eliminates the risk of hyperinflation because at a certain point in the future, its algorithm will restrict the production of more Bitcoin. There’s a whole techy explanation behind it.
Some fears associated with this currency is its stability. Sure, if you’re a middle class American, it wouldn’t be smart to convert your 401K to Bitcoin just yet. But what if you’re in an unstable environment? Syria? Africa? Bitcoin could be your best alternative.
The leading expert in the field of Bitcoin is none other than the aforementioned Andreas Antonopoulos. His eloquent and technical analysis of this new technology will teach you everything you need to know and he’s not hard to find. At the time of this writing, he’s made 4 appearances on the Joe Rogan Experience. He’s also been seen on London Real, as well as so many other media outlets.
This evolution of money has gone from bartering to precious metals to paper. The way I see it, digital currency is just the next step. Discuss more in our closed Facebook group @ http://bit.ly/2clhAuM
For more on the “Internet of Things”, read Steve Case’s “The Third Wave” or Alex Ross’s “The Industries of the Future.”