Blockchain and Bitcoin 101Submitted by Justin Hayek on October 17th, 2017
Recently there's been significant coverage in the media about blockchain, Bitcoin and other cryptocurrencies. But what does this all mean and what are the implications? And of course, as investors, how can we profit on this?!
Personally I wasn't too sure about what this all meant until I started to do some research. I'm certainly not a tech expert or a futurist but from the research I have conducted, it appears as though cryptocurrencies and the technology that underlies it - blockchain - is somewhat revolutionary or has the potential to be. Think of it as "The Internet 2.0". PI's technology analyst David Kwan, someone much smarter than me, thinks the same saying in a recent report:
"Blockchain is now on the cusp of transforming many aspects of our everyday lives given the plethora of applications for blockchain technology"
- David Kwan, PI Financial Technology Analyst
What is Blockchain?
Below is a short video (2 mins) posted on YouTube by The World Economic Forum explaining what exactly blockchain is.
Blockchain being the underlying technology behind Bitcoin and other cryptocurrencies, brings us to (2 min video):
What is Bitcoin?
Blockchain technology is still in its infancy stage, and as such, no one knows exactly what a matured blockchain world will look like though we can be almost certain it will impact a significant number of industries. According to Futurethinkers.org, blockchain technology will disrupt at least 19 industries including:
Banking and payments, cyber security, supply chain management , healthcare, retail, online music, real estate and even voting.
Some of the world's largest companies have recognized this and have announced initiatives to explore using blockchain technology in their businesses. David Kwan says "the opportunity to deploy blockchain-based solutions targeting applications both big and small has attracted a wide array of vendors to the market ranging from small, private start-ups to blue-chip, multi-billion dollar technology companies looking for the next big thing to drive future growth". Notable, high profile companies announcing such initiatives include: Microsoft for the US Government, IBM, BNP Paribas, Baidu, HP Enterprise, Fujitsu, and Oracle to name a few.
With the growing acceptance and implementation of blockchain technology and cryptocurrencies in existing industries, you can expect both to proliferate into industries on their own. As such, new companies and enterprises will emerge looking to get their share of the blockchain and cryptocurrency pie. A number of blockchain companies have been and will be going public as the race to enter and become the leader in the sector picks up. We will be exploring investment opportunities in this new and thriving sector and hope to cash in on what may become revolutionary.
Click the below to view PI Financial Technology Analyst David Kwan's sector overview on blockchain