Have a look at what the bitcoin price did this week:
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The all-time high bitcoin hit on Wednesday, in which the crypto rose to a never-before-seen high of US$11,155 (AU$14,737) per coin, came less than 24 hours after cracking the US$10,000 mark.
The sudden 20% decline set the usual ‘I don’t understand cryptocurrencies’ types’ tongues wagging. ‘The crash is here!’ I read somewhere. Another website suggested the ‘fools’ would sell out of bitcoin.
The non-believers simply haven’t grasped the incredible transformation happening before them. Bitcoin and cryptocurrencies are a monetary revolution. They will shake and shatter everything we know about money today.
Bitcoin entrepreneur Vinny Lingham says bitcoin has a 2.5% chance of hitting US$100,000 (AU$132,117). He doesn’t actually explain how he arrives at this figure. Or when it might happen. But he’s confident that bitcoin will appreciate over time in a fashion less frenetic than what we’ve seen up to now.
Marc Andreessen, who co-founded Netscape, says bitcoin is today where the internet was in the early 1990s. Or, as Forbes explained on Tuesday, exactly like how email was in 1994, writing:
‘Like email in 1994, Bitcoin provides value today. It can consistently and securely transmit monetary value across the planet and also provides a censorship and judgement-resistant store of value. Like email in 1994, Bitcoin is a robust technology ready for widespread use, but very early in its adoption curve. And like email in 1994, the small network of users means that there are few people to whom you can send Bitcoin, and this leads many to question its usefulness.’
It seems inevitable that time and a growing user base will drastically alter the perception of bitcoin.
Passports, prosthetics and privacy
Ryan Dinse, editor of Exponential Stock Investor, said to me this week while we were discussing bitcoin: ‘People can’t see this transformation right now. In five years, it will be obvious.’
Ryan’s been analysing cryptocurrencies for the better part of five years.
While Ryan is a big believer in cryptos, it’s not just the currency that interests him. Blockchain, which powers bitcoin, is what he’s really excited about. I’ve talked about this at length this week but, essentially, it’s a ledger that records all transactions as they happen in real-time.
We discussed the possibilities for blockchain. What it could mean for everyday people. And just how far the application of it could expand.
‘Like travel for example. In years to come, you won’t apply for a visa at customs in a foreign country,’ Ryan told me.
I pushed the point, asking Ryan if he meant that when you go through customs, they’ll scan your passport, and the blockchain will automatically confirm you have a visa to enter the country.
‘No, no. You’re thinking too small. See with the rise of biometric technology, our faces will become our passports. Everything will link to our body parts. You won’t even queue in at airport anymore. Video cameras at the airport will scan your face, and match it with blockchain data. Your face is your ticket and your passport. The blockchain will confirm you can enter. And away you go.’
But this raises an important point: What will happen to your privacy?
We joked that it would lead to a boom in face masks. But it was an uncomfortable quip that hit a little too close to home.
Regardless, technology is working behind the scenes to revolutionise simple day-to-day tasks. You can’t see it or touch it. But the changes will have an incredible impact on your life. And, in our view, there will be more positives than negatives.
That’s good news for early adopters. Considering we’re still at the ground-floor of this revolution, it’s not too late to become an early adopter yourself.
Ryan’s latest report on blockchain technology is your starting point. It explains the ways in which the blockchain will challenge everything you know about technology. He also reveals the companies that are hard at work in setting the foundation for this revolution, and how you can invest in them.
Editor, Markets & Money