By now you have heard the words “Bitcoin” and “cryptocurrency”. Relatively few people know what it is. Far fewer actually own some.
This article cannot tell you everything there is to know about the subject. What I will do is try to whet your appetite for becoming a little more familiar with this phenomenon that, as of this writing, has a market cap of more than $600 BILLION dollars, and appears to be rapidly approaching the one TRILLION DOLLAR mark. My disclaimer is that I am a newbie on this subject, and the only financial advice I have for you is, “Don’t spend more than you can afford to lose.” I, myself, have spent a whopping $100 to buy a piece of LiteCoin just to jump in the game and find out what it’s about.
Wikipedia definition: “A cryptocurrency is a digital asset designed to work as a medium of exchange that uses cryptography to secure its transactions, to control the creation of additional units, and to verify the transfer of assets.” It’s also known as “currency for the Internet”. The only way to use US dollars to pay someone online, you have to go through banks. The bank and transaction processor take between 3% to 11% of the transaction for themselves. Plus, they typically hold onto the funds for up to 7 days. With cryptocurrency, the transaction fee can amount to less than 1% of the total, and is completed within 10 minutes anywhere around the globe. The revolutionary technology behind it, known as “block chain”, makes cryptocurrency virtually impossible to counterfeit.
Different people have different motives for using cryptocurrency. The underlying technology that makes cryptocurrency work is so intriguing that many consider cryptocurrency as being a far superior replacement for the fiat money now being circulated by governments. Already it has formally replaced the currency of at least one small country. Some speculators anticipate that cryptocurrencies will someday replace the Euro and the US dollar. Others expect that its value is going to plummet to absolute zero. Nobody knows for sure.
One thing I know is that it is interesting. If you would like to learn more about cryptocurrency, go to https://myCGICON.com/cryptocurrency. If you would like to do more than just read about it, a live meetup group is forming at the Greenhouse JoCo coworking space in the Tilson HR building on Tuesday evenings from 5 to 6. I plan to be there. Would you like to join the discussion?