Bitcoin is a word that is bandied about often these days, whether it is in the news or by technology experts, economists, or politicians.
It is a hot topic for sure, one that can dominate the conversation and often skew it to the point that people don’t really see some of the most important aspects of it. Many people become fascinated by the rise and fall of the value of Bitcoin, which can often be quite dramatic. But a private equity firm manager who becomes focused on this might be missing the bigger picture, a picture that can really make a difference for the investors at their firm. Bitcoin is only the tip of the iceberg for what cryptocurrency is all about, even as it tends to dominate the conversation. It’s what is powering Bitcoin that is the bigger news, especially for firms looking for profit potential.
Bitcoin, along with most types of cryptocurrencies, is driven by something known as blockchain technology. This is the technology that has the potential of doing nothing less than changing the world. Think in terms of how smart phones came from out of nowhere to become something indispensable, or of how the internet went from being used by a few hobbyists to become a ubiquitous force in life. The blockchain is on the precipice of creating the same kind of monumental, societal sea change. For individual investors who want to gain a piece of the blockchain and cryptocurrency, they should consider a smart trading algorithm like Bitcoin Loophole which generates consistent daily earnings for both newcomers and professionals users. Private equity investors need to acquaint themselves with the blockchain as they think about what their next investment might be.
What It Is?
The purpose of the blockchain is essentially to verify something, whatever that might be. It does so in a decentralized manner, through many different computer nodes all working at the same task. That multiplicity prevents duplicity by one actor, since the other nodes prevent that from happening. It basically allows whoever utilizes it to trust the outcome, which is verified through a cryptographic process.
What That Means?
All that technical jargon means that the things that we do in our lives that usually require some sort of third party to oversee them can now be done without worrying about employing that third party. Need to receive money from someone? You no longer need a bank or credit card company. Want to draw up a contract? You don’t need a lawyer. How about making a bet on a sporting event? Forget about a sports book.
Endless Application
Basically, whatever aspect of modern life you can imagine, it can be improved with blockchain technology. Yes, it makes payments easier. But it does so much more than that. And many of the companies springing up around cryptocurrency are looking for private equity money to help them change the world.
Bitcoin may get the press, but the blockchain is what’s important. And that especially goes for the private equity manager looking to latch into the next big thing.