What is Bitcoin?
Bitcoin is an online investment system where money is being saved in a digital currency using Blockchain technology. We usually express Bitcoin as a digital currency in dollars. The stored value of bitcoin fluctuates like most currencies or precious metals such as gold or silver.
In the cryptocurrency marketplace, there are over 2172 cryptocurrencies operating in 10,840 exchanges, with a market capitalization of over $234 billion (Coinlore.com, 2019). All cryptocurrencies depend on the Blockchain technology, to function seamless and provide the robustness and privacy that investors deserve. To gain Bitcoin, a person merely downloads a free virtual wallet, which is an encrypted computer file to store bitcoins. There are several organizations offering wallets for users to invest in Bitcoin. We can store bitcoin in any computer that is secured, and a user can have multiple wallets just like a user can have different currencies in their billfold. All wallets are viewable by the public, but they hide the names of the owners from the public. Only the owner of the can withdraw money out or use the bitcoin to buy goods and services. If you lose your wallet, which has the security key, you could not withdraw any money or conduct any transactions. Someone can use bitcoin to pay for goods and services like normal currency. Several investors have lost money trading in Bitcoin, and people have to view Bitcoin as a digital currency that can fluctuate in value. As an investment, we recommend that the public conduct extensive research before investing and diversifying the portfolio. Bitcoin, like normal currencies, will fluctuate in value over time because of market conditions and economic conditions. As the adoption and usage of Bitcoin continues to grow, it becomes a stable currency and is widely used.
How to buy Bitcoin?
There are two ways an investor can buy Bitcoins. The investor can reach out to a broker offering cryptocurrency as an investment or they can buy it directly from the cryptocurrency organization. Several Wall Street investment firms are trading in Bitcoin, just like any of the investment packages. According to Godbole (2019) at Coindesk, Bitcoin is trading between $7,200 and $7,850. The price continues to fluctuate based on market conditions. This price might be too expensive for an entry-level investor. Investors can buy cryptocurrency in fractional quantities.
What is Blockchain?
Blockchain is an online secured platform that has a well-encrypted system with high privacy. It is mostly used by Bitcoin and other cryptocurrencies. Bitcoin is the most popular cryptocurrency that was introduced with Blockchain technology. It is often referred to as a “Distributed Ledger Technology” (DLT) which provides a broad range of uses such as Data storage, financial transactions, real estate, asset management and many more uses are being explored.
Why is Blockchain technology good for other industries beyond Bitcoin?
Blockchain is a distributed ledger and so there is not a single point of failure with the Blockchain technology. This lack of a central point of failure makes it robust and bullet-proof and improves uptime and availability. Because of it not having a single centralized control, it radically changes there the role of a database administrator from the person with the keys to the database to that of a custodian. With Blockchain technology, the notion that one user can gain access to the database and hack into the data and make any change is not possible. The Blockchain technology distributed ledger is shared by all entities and all the entities agree must agree for any change to occur. In the healthcare setting, the patient record belongs to the patient and not to any clinic. The patient demands access to this record and many times we restrict them from seeing their medical records without extensive paperwork. With Blockchain technology, these middle persons (AKA medical records department) will be virtually eliminated. The patient will have access to their medical records and can seamlessly share this record with their providers.
An article in Forbes Magazine lists fifty companies in various businesses that have made an investment in the Blockchain technology (del Castillo, 2019). These companies range from Investments firms, healthcare, finance, and many other industries.
This overview of Bitcoin and Blockchain technology provides some insight into a cryptocurrency as the future of money. An investor who wants to invest in cryptocurrency must consider all the factors that makes any good investment: extensive research, portfolio diversification, investment objectives, and willingness to absorb risky. Investors are warned to avoid the Fear of Missing Out (FOMO) syndrome or get sucked into the “get rich quick” hype. Whether dealing with a Fortune 500 entity that has been around for years, or a cryptocurrency that is barely a year old, balancing these elements is critical in making a smart investment.
The immutability mechanisms of Blockchain technology lead to a lowered cost of audit and regulatory compliance with improved transparency. All transactions executed on corporate networks using Blockchain technology are smart, automated, and final, businesses enjoy increased speed of execution, reduced costs, and less risk, all of which enables businesses to build new revenue streams to interact with clients.
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Coinlore.com. (2019, May 23). Cryptocurrency List: Live Cryptocurrency Prices & Coin Market Caps. Retrieved from Coinlore.com : https://www.coinlore.com/all_coins
del Castillo, M. (2019, 04 16). Blockchain 50: Billion Dollar Babies. Retrieved from www.forbes.com: https://www.forbes.com/sites/michaeldelcastillo/2019/04/16/blockchain-50-billion-dollar-babies/#6117e24a57cc
Godbole, O. (2019, May 23). Price Dip Leaves Bitcoin Exposed to $7.2K Support. Retrieved from