Let’s travel back in time to 2009. Roughly ten years ago – and the world’s first digital currency, the Bitcoin hit the market. But, back then; it was nothing but a topic of discussion among digital nerds and finance geeks.
And, the rest, as they say, is history. Today, Bitcoin and other digital currencies, along with the technology powering it are one of the top trending topics, not just among tech geeks, but among the entire population. And, in a span of fewer than ten years, the value of Bitcoin has shot up from $0 to $8000 and now, hovers around $6000.
For instance, if you had invested a measly sum of $100 in Bitcoins way back in 2009, you would have been a millionaire now. Talk about missed opportunities!
So, do you get the feeling that you have missed the Bitcoin bandwagon? Worry not, experts say that the hype about Bitcoin is just getting started, and the best is yet to come.
Here, in today’s piece, Mohsin Jameel give you the reasons, why you should start dipping your toes (and your entire body) in blockchain and digital currencies if you haven’t done so yet.
What is the Blockchain?
Simply put, it’s the magic behind Bitcoin and other digital currencies. The blockchain makes it possible for two people in any corner of the world to send or receive payments, without the interference of any third-party.
How does the Blockchain Work?
There are plenty of articles on the internet that explain in detail about the workings of the blockchain. You can Google it up.
Simply put, you can consider the blockchain as a massive open ledger made up of nodes. Each node contains the address of the next node in the chain. All transactions carried out using the blockchain are peer verified. This makes transactions immutable, irreversible, which in turn, contribute to the security of the network.
Now, that you have a simple understanding of how blockchain works, let’s focus on our attention on a pressing debate.
Is Bitcoin about to be Busted like the Dotcom Bubble?
You would have come across several articles saying that “Bitcoin is a bubble and digital currencies will lose their value and hype, pretty soon.”
Well, today I give you three solid reasons, why I believe that the Bitcoin bubble is nothing but hogwash. Though the future of Bitcoin is at stake, what I can say with certainty is that blockchains and other digital currencies won’t die anytime soon.
Let me back up that statement with reasons.
3 Reasons Why You Cannot Afford to Ignore Digital Currencies, Anymore
Here are three reasons why I strongly believe digital currencies are a huge game-changer.
Reason #1: They are Private
Did you know that every time you swipe your card to pay for a simple transaction, you are revealing your financial details to several third-party organizations? According to bestselling authors Michael J Casey and Paul Vigna (in the book Cryptocurrency: How Bitcoin and Digital Money are Challenging the Global Economic Order), they say that nearly 7 third-parties are involved in your financial transaction, every time you pay for your coffee at Starbucks.
Whoa! That’s just for coffee! Then, think about other huge transactions. With digital currencies, it’s just you and your receiver. There are no middle-men snooping in. Not only is your private information safe, but you don’t have to pay anything to intermediaries for the service they provide. This makes cross-border transactions highly cost-friendly.
Reason #2: Excellent Investment Opportunities
Unlike real-world currencies that have an infinite supply, digital currencies are limited. There’s a particular limit beyond which you cannot “mint” a particular digital token. For instance, there will only be 21,000,000 Bitcoins ever mined. It’s impossible to mint even a single extra Bitcoin once it reaches this limit.
This means digital currencies make great investment opportunities. Since there’s a limited supply, the value of your investment is sure to increase, down the line.
Reason #3: Digital Money is the Currency of the Future
More and more people have adopted digital currencies, and more and more merchants are accepting digital money as payment. Even nations have started embracing digital currencies. For instance, Japan and China have come up with several policies that allow people to pay for regular everyday goods with digital currencies.
Now, that you’re convinced of the benefits of digital currencies and their potentials, let me give you three reasons why I believe that as a business, you should start working with blockchain.
Top 3 Reasons why Businesses Should Embrace Blockchain
Reason #1: Lowered Costs
Today, businesses are no longer restricted to specific geographic locations. With the increase in ecommerce and the culture of online shopping, it’s common for businesses to send and accept cross-border payments.
But, the sad truth is that fees for these payments are sky-high. International payment transfer services like PayPal and Shopify can charge anywhere between 2.5% to 4.4% of each transaction. This quickly eats up your profits.
With blockchain, you eliminate the need for any middlemen, thereby cutting down your transaction and transfer charges, significantly.
Reason #2: Innovation
You would have heard experts stating that all technologies come with an adoption curve. Today, blockchain is at the very start of the adoption curve. A vast majority of businesses and consumers haven’t yet woken up to the benefits of this technology.
By adopting blockchain for business today, you establish your position as a leader in your field. This not only gives you an edge over your competitors but also wins over customers, which in turn boosts your bottom line.
Reason #3: Outpace your Competitors
It’s a well-established fact that pioneers are the ones who win big, especially in the world of business. One of the main reasons why Amazon has grown to become the global giant it is today is because it was one of the early adopters of online shopping.
Blockchain technology is the next big thing in the industry. By adopting it today, you stay ahead of your competitors. You get to provide your customers with innovative solutions available nowhere else, thereby staying miles ahead.
Final Thoughts by Mohsin Jameel
Mohsin Jameel says "No one can predict the future of Bitcoins with certainty." It may shoot up to the moon, or it may fall and crash badly. Only time will tell.
But, what’s certain is that the future of other emerging digital currencies and the blockchain is rock solid. And, one thing is clear – “You can no longer afford to ignore digital money and blockchain technology!”
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