According to Howard Bitcoin is not dead. I agree with him that price is a big indicator of where things are going but I can’t help but wonder that this sudden uptick in cryptocurrency jobs is just a lag effect from when Bitcoin was $19,000.
I know people on both sides of the Bitcoin/blockchain fence. The risk takers tend to be long Bitcoin whereas the lower risk folks tend to think it’s a sham.
That, right there folks, is a market. The Bulls and Bears in our daily life.
I posted this article back in April of this year. Since then Bitcoin and other cryptocurrencies have collapsed in a spectacular fashion. The air camp out of this sector and many people got caught holding the bag.
When I get to around to reposting the conversation I overhead in the old office, about a guy’s son investing all his savings in Bitcoin, I think you’ll cry.
Do I still have some Ripple and Ethereum, yes. I will probably hold that stuff till it’s worthless.
Did I lose BIG money in this? Nope. I cashed out a lot of positions on the way up and reinvested the ‘house’ winnings in other crap.
I’ve been a big fan of Bitcoin for a while and the potential for a true digital currency, but lately it’s been having problems. Some prominent voices in the Bitcoin world actually say it’s dead and that got me a little worried. I’m no longer bullish on the Bitcoin currency itself partly because of Hearn’s departure from the project, but mostly because first innovators usually don’t survive. I believe something else will take Bitcoin’s place one day as the defacto digital currency. In the meantime it’s all about the Blockchain, stupid.
Bullish on Blockchain
That said, I’m actually quite bullish on this technology. It’s the system that makes Bitcoin work.
Perhaps the most interesting thing about blockchain is that there’s no central authority or single source of the database. Which means it exists on every system that’s associated with it. Yes, every system has its own complete copy of the blockchain. As new blocks are added, they’re also received by every system – for the ultimate distributed database. If you lose your copy, no problem. By rejoining the blockchain network you get a fresh new copy of the entire blockchain. (h/t @ischwartz)
You can’t have Bitcoin without a Blockchain but you can have a Blockchain without a Bitcoin. In fact you can create a Blockchain for all kinds of things, especially financial transactions.
When you talk about blockchain in the context of Bitcoin, the connection to Big Data seems a little tenuous. What if, instead of Bitcoin, the blockchain was a ledger for other financial transactions? Or business contracts? Or stock trades? The financial services industry is starting to take a serious look at blockchain technology. Citi, NASDAQ, and Visa recently made significant investments in Chain.com, a Bitcoin blockchain service provider. Oliver Bussmann, CIO of UBS, says that blockchain technology could “pare transaction processing time from days to minutes.” via Web 2.0 Journal
I think it might be time invest in these types of Startups.
I started bitcoin mining with my Raspberry Pi and an ASIC miner, just for fun because I like to tinker. I doubt that I’ll get rich off this, but I just wanted to try out this “real” digital currency.
I’m not 100% sold on it yet, it does have some great advantages (i.e. decentralized, low transaction fees), and some disadvantages (i.e. governments might not like it), so it remains to be seen if it will be viable.
In the meantime, I’m mining 24/7 with a goal to get to 1 BTC by the time I’m 90.