Blockchain is a chain of blocks each of which records encrypted information from each of the previous blocks and this chain is constantly growing.
Blockchain technology was first introduced in 2008 by an anonymous person or a group of people with a nickname Satoshi Nakamoto for the purpose of creating the first digital currency — Bitcoin.
Since then the world of cryptocurrencies has boomed. Nevertheless, digital assets are still at an early stage of development, which gives us a lot of opportunities. Imagine the global use of cryptocurrencies and think about the meaning that it could have with it. Unlike traditional money, with the centralised management by central banks, cryptocurrencies are operated by automated encrypted codes, which support the implementation of transactions and ensure their security.
Cryptocurrencies, such as Bitcoin are decentralised and they are limited in numbers. In other words, Bitcoin can not be printed or simply made out of air. Bitcoin is a deflationary, not an inflationary asset, and a deflationary asset tends to increase in value over time, rather than decrease like traditional currencies do.
Given all the strengths of Blockchain technology and the originality of the idea of cryptocurrency, Bitcoin dominated the digital currency space since the beginning. But the emergence of new cryptocurrencies, altcoins, significantly reduced the market share of Bitcoin. While more and more people decide to diversify their crypto investment portfolio, the total market capitalisation of the cryptocurrency market continues to grow, but Bitcoin’s share in it is getting smaller.
The strengths of cryptocurrencies:
A global network of computers use blockchain technology to jointly manage the database that records transactions. Therefore it is managed by its network, and not by one single central authority.
Individuals’ cryptocurrencies are digital and cannot be counterfeited or reversed arbitrarily by the sender. The information is safe because it is not kept as one entity but rather small parts of it are stored in many different locations, which is a sophisticated peer-to-peer technology.
- Fast Settlement:
With cryptocurrency, you don’t need to wait a couple days for your business to receive the money. Blockchain removes delays, payment of fees and a host of other third party approval that might have been present.
Cryptocurrency uses a “push” mechanism that allows the its holder to send exactly what he or she wants to the merchant or recipient with no further information, which makes identity theft or fraud impossible since it is impossible to track someone’s information or put it together.
- Recognition at a universal level:
Since cryptocurrency is not bound by the exchange rates, interest rates, transactions charges or other charges of any country; therefore it can be used at an international level without experiencing any problems.
Although Blockchain revolutionises the finance, it is not limited to finance only. It is actively used in many different areas, such as: Intellectual property, Public Archives, Land registry, Health care, Private property, Voting, and more.
Our goal is to help you incorporate this innovation into your investment strategy and stay on top of all the new opportunities in the market.