Home Currency TradingThe Effect of a Growing Blockchain Market on Cryptocurrency
The Effect of a Growing Blockchain Market on Cryptocurrency

The Effect of a Growing Blockchain Market on Cryptocurrency

The days of skeptics attempting to undermine the value of crypto-currency are almost gone for good. Companies like Abra even offer digital wallets for investors. Even the simplest of web searches will reveal that bitcoin is mined in the same way that traditional monetary metals were. A lot of time, effort, manpower and electricity consumption is involved. Depreciable server towers are always involved. Sometimes rooms full of these towers are incorporated. Plenty of value is present within the crypto market. The currency itself, specifically Bitcoin, is poised to become far more commonplace, however. This is because the technology that powers it is being eyeballed by several key industries.

What Technology Are We Talking About?

The technology that powers currencies such as Bitcoin is called blockchain technology. In its most basic form, a blockchain keeps a digital account of chronological occurrences without allowing the record to be altered or adjusted. While many industries are interested in what blockchain could do for them, several of these industries stand out.

Insurance Providers and Medical Providers are Watching

The storing of honest, chronological and accurate records is very important within the health and insurance fields. A high security blockchain could be used for each client. Everything that happens to a client’s automobile becomes part of the chain. Every doctor visit becomes part of the chain. It’s not difficult to see why this industry is eyeballing the technology.

The Accounting Industry is Watching

Understanding the technology, it’s not difficult to see why the developers of accounting solutions would keep a watch on this sort of technology. One area of accounting stands out in particular, however; taxation. It would be much simpler for an entity such as the Internal Revenue Service to have a blockchain to reference. This way the returns of each taxpayer have a master file to reconcile against. Keep in mind that this master file cannot be adjusted or altered so cheating is much less likely.

So if I Bought Bitcoin as an Investor the Value will Continue to Climb?

Some people seem to be under this assumption. I feel that, like with anything else in the economy, once the technology becomes extremely commonplace the value will flatten out somewhere on the climb. Less people have to find ways to build the capital for mining servers. Everybody will be running servers like a California gold rush! The value of mining will decline, so the value of the currency should become stable. With this market who knows?

Keep a Varied Crypto Portfolio in a Digital Wallet…

There is simply no denying the fact that Bitcoin is a better way to do the following: send and receive money, tip service providers, and make online purchases (especially of a questionable type). I would certainly keep other cryptos in my digital wallet! While Bitcoin is likely to flatten, others could be more of an investment like a stock or bond. This is what makes digital wallet investing so attractive.

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