Creative destruction has become our new favourite buzzword. It also aptly describes this new wave or phenomenon of Crypto-mania driven by the blockchain and its shining star – the Bitcoin.
Suddenly, risk-averse people who normally would not bat an eye at trading in normal shares(stocks) or any high-risk investment for that matter, are now pondering, asking and investigating means with which they too can cash in on the digitally induced bonanza.
One must admit that even though like anything else that goes up, and very abruptly and abnormally, it will eventually come tumbling down – like the big dot.com bubble that burst and left many in dire straits after they over-indulged in overvalued tech companies.
The Bitcoin will eventually find its peak and there will be a mass sell-out and a ‘crash’ at some point.
Where this point lies – no one knows and we even now recently have the likes of an ironically vocal skeptic – the dubious Ponzi-scammer dubbed ‘the Wolf of Wall Street’ himself Joel Belmont, weighing in and pre-empting a crash.
The funny thing is, most of the critics are those who have not invested themselves and are perhaps suffering from a case of sour-grapes or simply don’t understand the mechanisms of how it works to even get involved.
Doubt is prompted by fear of an unknown and while most investors themselves don’t understand the complex algorithms that went into designing the blockchain – it is here to stay even if the ever-climbing in
value Bitcoin crashes. Bitcoin, hovering around the $17 000 after breaking its latest resistance level, is now poised to reach the 20K mark at the time of writing this.
Creative destruction does not just have a way of re-inventing a wheel but does so completely to make the previous version look ancient very quickly. So while Bitcoins and its financial furore might not even last long, it, however, has brought about it add-ons or spill-over effects.
There are now hundreds of Cryptocurrencies out there – and while not all and most will not get to realize huge price surges like that of Bitcoin, Ethereum or recently Dash, Monero, and Litecoin, they are all trading and being mined in some form or another.
The spill-over effect includes the creation jobs for new entrepreneurs, gamers, and developers across the globe.
Though it might be too late for investors to delve into the above-mentioned ‘big boys of crypto’, institutions are constantly (if not daily) developing blockchain products.
The fact of the matter is that the use and process of a blockchain makes sense and will, and is in the process of removing the old currency system.
Now, this may take a while before it completely phases out fiat money. This will also hopefully, much to the delight of governments and fiscal authorities, help eradicate the scourge of counterfeiting. This scourge alone costs billions annually and might even be fostering inflation in some way or another.
Application of blockchain tech
Think about the big picture, the blockchain technology will also now enable anyone or any institution smart enough to copy or modify a part the anonymously written code. Blockchain pretty much is open-source, so anyone smart enough can create their own.
There can now be a Crypto for shopping, for buying cars, for getting your contract -based salary timeously paid by a multi-national company irrespective of where you are based or paying for using Internet services (IOT).
The latter already exists and is called IOTA – read more about it on the resources page.
Like Lego blocks (excuse the pun), this technology can enable one to find creative ways to monetize a cryptocurrency to serve any purpose and provide a secure and lightning-quick means to transfer funds.
Litecoin and Dash boast amazing speeds of under 10 seconds to complete international money transfers.
It would be interesting to observe any bank try and beat that without charging an arm and leg for that type of service!
The critics, who thought people like Elon Musk was crazy for inventing electrically powered battery motors to run engines and now trucks – are constantly are eating their shorts.
Not only did Tesla´s market capitalization trump that of Ford and recently BMW, but it also beat many petrol or diesel-powered vehicles in speed and performance, attractive looks and practicality – it has changed and is in the process shifting the motor industry.
Manufacturers like Volvo, Porsche have now rolled out their own hybrids cars and are looking to go the route of fully electric motors within a short matter of years.
This and other notable paradigm shifts in the way we do things embody the beautiful concept of creative destruction. Those that shun it get left behind.
And while it is not all about the monetary gains, you can own the coins to use for transactions rather than for investment – or for both.
It will serve you better, in the long run, to get in the know of what is out there.
Be wary and vigilant, as like with money and investment, there are sharks out there (offering all sorts of deals and on new platforms) to exploit unknowing technophobes looking to make a quick buck or two (thousand).
Mining Cryptocurrencies (a past-time which is particularly conducive for gaming enthusiasts) and using them to benefit you quickly and securely is the way of a new digitized future.
Some Internet pirates in desperation and looking to accumulate and cash in on digital currency such as Monero are even now using java-scripted mining devices (hidden behind ads and downloads) to steal power from unsuspecting web-page browsers.
Everyone is trying to get a piece of the action! There are also legitimate paid commission-based add-ons for trading as well – opening up a new world of digital earning online.
Don’t get left behind but as with any investment, and a caution to the wise: Cryptocurrencies are highly volatile, and should not substitute any investment portfolio consisting of real-estate/property and tangible assets like Gold if attainable.
They should only and always account for a fraction of your overall investment.