Blockchain and Cryptocurrency: Good Investment? (Bitcoin Anyone?)
A blockchain is a continuously growing list of records, called blocks, which are linked and secured using cryptography. Each block typically contains a hash pointer as a link to a previous block, a timestamp and transaction data.
Blockchains are gaining visibility when it comes to investment, and it has been raising some questions regarding if it is a good type of investment or not.
Blockchain technology has been heating up in the past several months, thanks in large part to the surge in Bitcoin's price since early May. The cryptocurrency skyrocketed from less than $1,000 in March to an all-time high of $4,440 on August 14.
So… Should you consider investing in cryptocurrency? Should you consider investing in blockchains?
Watch this video and find out!
Transcript Of The Video
John Sonmez: Hey, what's up? John Sonmez here from simpleprogrammer.com. Today, we're going to be talking about blockchains. Andrei says, “Blockchain. Is it the next big thing? What are the skillsets needed? Do you recommend studying it?” I'll briefly talk about the investing side because I don’t think that—I mean yes, a lot of people have made a lot of money in investing in cryptocurrencies, which are based in blockchain. I don’t think that it's a good idea because it's not an investment. It's a speculation. I'm not for investing “speculating” in cryptocurrencies, even though people have made a lot of money simply because it is a speculation and there's no guarantee.
I'd like to do things that are guaranteed that have a high chance of success. I don’t like to make bets on stuff that maybe will work because even if they do work out, what, don't you give yourself a pat on the back and say you picked the right horse? I don’t know. I don’t care to do that. I care to like earn the stuff that I achieve in life because those things are more rewarding. Let's talk about blockchain itself and the technology. That I'm 100% bare-on on the technology itself because it's a superior technology. It makes sense. I think that currency is going to go that direction. I see it as the future. I mean you see all this kind of futuristic movies or sci-fi novels, then they talk about having credits or cred stick. That hasn’t been possible before because of the problems with fiat currencies, with monetary systems and with governments controlling and being able to print up money. Whereas, the cryptocurrencies, the blockchain technology, not only allows us to limit the supply of the money to be almost like it was on a gold standard, but it does expand. The monetary system does expand, which is important. Otherwise, you have a huge, huge deflation which is not—which you still have in cryptocurrency, by the way. I mean you can see it. That's why a lot of these coins are going so far out there. They're driven by speculation and deflation, really as the currency is more scarce, it becomes more valuable and more people want it. What I see is that this is definitely the future.
I mean I would bet on this technology for sure. I don’t know that cryptocurrencies are going to go up and I don’t know that something better isn't going to come along, but it's going to be based on blockchain. That's what I'm saying is that because this makes so much sense. It makes so much sense that we finally have the solution where if you think about it, government—we can't trust any government in the world because we can't trust government with monetary supply. Every single government that has ever gotten their hands on money to create fiat currency has fucked it up. Think about this. Look at all the countries that have had major ridiculous inflations, even here in the United States. We still have stagflation all the time and we're messing with money and we're having disastrous results. Managing money is something that—especially as we become more of a world society and needs to be handled in a decentralized type of way, and blockchain makes sense. Also, if you think about it, blockchain. Just the idea, the concept of having this peer-to-peer, this validation happening from multiple nodes. Multiple people verify things, I think that makes sense for contracts.
You hear about things like Ethereum which uses—there's other cryptocurrencies based off of this that have this contract idea where you can actually create contracts and enforce contracts and verify them from multiple properties. Think about property ownership and land ownership, and things like that entitles to things that if we have this blockchain technology, we can verify very definitely who is the owner of the property and what transactions occurred, and we can prevent fraud. This stuff all makes sense and is all decentralized. What I recommend is I would recommend that if you're interested in this stuff, yes, learn about it in depth. I have a cursory knowledge, but if you're interested in it I highly encourage you to learn it, especially a software developer because I see this is a huge, huge field. There's going to be—there are so many companies already now that are investing in the technology and they're going to have to invest in the technology in the future. Having this in-depth knowledge is not easy. It's a complex thing. It really is complex. I tried to go through and understand bitcoin at one point. I have the gist of it, but I don’t understand the intricacies of it. I'll be honest with you because there's a lot to it. This is a good thing. I think a good market to move into. I think it's growing and expanding market and there's always going to be jobs here.
If you're interested, take the time, learn it in depth but don't play around in the market. Don't—like that speculation, that's how you're going to lose it. So many people that are liked blockchain geeks or cryptocurrency, they're just playing the market just like a stock trader. There's nothing wrong necessarily with that. I used to trade stocks for a long time, but what I'm saying is that the real value, the real people that are going to become billionaires, not just millionaires, billionaires after this technology are not going to be the people that trade the currency. They're going to be the people that do something with the currency, that invent technologies on top of it. Maybe some of the people that create the currencies to some degree. That's what it is. It's the technology itself. It's not the currency. It's not the speculation. It's the investment on this. Can you build a business, for example, on top of blockchain? Can you build a business on top of cryptocurrency?
If you can do that, that's where you're going to see the real value and that's why I'd highly encourage you to do if you're interested. All right. Thanks for the question. Good question. If you have a question, you can email me at email@example.com. Make sure you click the Subscribe button. Click the bell below to make sure you don’t miss any videos, as I do like two to three a day. Yes, I'm not kidding. Click that bell. I'll talk to you next time. take care.