Bashar Baraz with Jeff Camarda
What is cryptocurrency? Why are people even considering this as an investment? Let me tell you why… HUGE GAINS for some. You see, a lot of people entered the cryptocurrency world to get rich quick; however, what they didn’t realize is that market was hyper volatile just as much as a penny stock market. In a world that is unregulated, there is a lot of market manipulation going on. Even if you get past the outright scams, lots of legitimate crypto programs are trading for way more than their intrinsic value, and some would argue they have no intrinsic value.
That being said, don’t be surprised when you see a real world integration of the crypto technology with our everyday lives. For example, some companies are using the block chain technology to enhance the transfer of wealth at a much faster rate. Bitcoin is the most well-known cryptocurrency out there; however, there are many other companies that create cryptocurrencies that may prove to have enduring value….or disappear in puffs of virtual smoke!
Blockchain is a very shrewd way to do accounting that is basically self-auditing. It works like this: say Jeff and I enter into a transaction. We do our deal, and the accounting for it is loaded into a “block” of data. Only Jeff and I have the code to read the data – that’s were the “crypto” comes from, because the data is encrypted – so it is completely confidential, even from governments, which makes them justifiably nervous about tax evasion and criminal activity. But even though only Jeff and I have the code, the block is copied by thousands and thousands of other computers around the world, so that if someone were to try to falsify the data, Jeff or I could easily find out by comparing our records to the many other identical encrypted blocks.
Blockchain is a very useful technology for tracking not only money transactions, but has already been used for everything to diamonds to copyrights for photographs. It is a killer record keeping system that should make transactions far cheaper and safer, and will change the world! But has far as having a value as a currency itself, Camarda thinks that in the end you may be safer investing in tulip bulbs! In the end, the real money, we think, will be made by companies who innovate their business models with this technology and provide better real world solutions for business and consumers.