What is the main value of the cryptocurrency market? Why so much hype?
People have long begun to realize that information is the most expensive resource in this world. If you have the opportunity to fly back in time, you will take with you not money or valuables, but something more expensive — information. Money is the most easily renewable resource, it is minted or printed, and then sent to find new information.
Every day more than a billion tweets appear, and the one who is best able to highlight something valuable in this stream of empty utterances will be able to earn a huge fortune. In 2006 a new slogan appeared: “Data is a new oil.” The data is of great value, but in its raw form it is unsuitable for use.
Giants such as Amazon and Google currently dominate the data field. Moreover, as a result of the advantage, they get a positive feedback loop (the more data you have, the better your technical solutions that help to get even more new data). This completely contradicts the ideal vision of everyone who owns their own data and the creation of a fairer world by creating decentralized systems.
Those people who often say “what was the point of using your blockchain” do not understand the principle that in this case the information you broadcast is encrypted, and the encryption keys remain only with you, unlike any centralized system. Moreover, this is cheaper for the end consumer, since in distributed systems the profits and costs of all participants are visible and there are no greedy owners.
Distributed ledger technology (DLT) — is the most advanced system for storing and transmitting digital information, it can be named Rolls-Royce in the world of data storage (new oil). One form of distributed ledger design is the blockchain system. Most people learned about blockchain thanks to bitcoin. The blockchain is already starting to change the processes of working with information and especially its most important sector — the financial one (read worldbank.org). Bitcoin has become the locomotive of this technology, a business card, and today it acts as an indicator of the state of a new emerging market. It is the most powerful and secure network in the world and it is more difficult to gain unauthorized access to data changes in it than to rob the most secure bank. Using it, even while in prison, you can send any amount to anywhere in the world, paying a ridiculously small commission for this, simply by gaining access to your smartphone.
Everyone knows that Bitcoin has been more than 10 years old, but few have read that the first protocols of “electronic money” were proposed back in 1983 (40 years ago). After the development, the most striking mention was in 1988 in a small article “Get Ready for the Phoenix” of the January issue of The Economist.
Now Bitcoin is gaining momentum, attracting with its exponential growth, and this is only the beginning. It is already in the Top 25 world companies in assessing their market capitalization, among such giants as Amazon, Apple, JP Morgan, Walmart, Visa, Bank of America, and even overtakes Samsung, Intel and Coca-Cola. Moreover, today the demand for the first cryptocurrency is limited, since it is not yet traded on the stock market on a par with these oldest giants.
Over the past two years, a correction has taken place on the cryptocurrency market, Bitcoin has lost about 70% of its peak value. This is a normal process in any market, so weak players get knocked out, attractive conditions for the arrival of the new money appear, and the market itself only gets stronger from this (self-cleaning is in progress). Perhaps now we are witnessing a new cycle of long-term growth, and not just see a new wave of empty hype, but we will observe the real implementation of the blockchain.
Samsung has already integrated a hardware wallet in its top-end phones, it is the hardware — a separate microprocessor is responsible for this. Manufacturers of electric cars have declared their support for cryptocurrencies. Even Donald Trump has already started talking about Bitcoin. Industrialization 4.0 is approaching, which simply cannot function without technologies related to cryptocurrencies. So gradually electricity will be tokenized, robots and IOT devices with built-in wallets will appear. In the UK, the number of charging stations for electric vehicles has already exceeded the number of fuel gas stations (9,300 against 8,400)