• The Basics.

What is Bitcoin? In short – it’s a decentralized digital currency. That means no government or bank controls it. Partially cutting out the middleman, it should allow for safer transactions over the web, which sounds very enticing for myriad reasons. The technology that governs those transactions is called a blockchain. The currency can be ‘mined’ by those willing to lend their hardware for the needs of the system (processing transactions and securing the network, for example).

• The Origins.

It may seem that Bitcoin appeared out of nowhere, but it is the oldest of the cryptocurrencies and this makes it the most valuable one as well. Bitcoin is almost 9 years old at this point, and dates back to 2008. This is the year, when the first proof of concept was published by the creator of the currency – Satoshi Nakamoto.

• The Creator.

If you want to know more about Nakamoto, well, you’re not the only one. That name is just a pseudonym adopted by the mysterious demiurge. No one has been able to confirm the real identity. A number of people stepped up to claim the title, including an Australian businessman and computer scientist Craig Wright, but none had the evidence to back up their claim. Real Nakamoto moved on from the project back in 2010, and has not surfaced since. Whoever that is, that person can definitely afford the anonymity, as they are estimated to own almost a million Bitcoins.

• The First Transaction.

First documented Bitcoin transaction was made back in May, 2010, when Laszlo Hanyecz (who went by the pseudonim laszlo) purchased two pizzas for 10,000 Bitcoins. At this point, that would be more than $170 million.

• The Future.

It’s difficult to say what the future has in store for the first cryptocurrency. Its latest gains have been utterly staggering, but the jury is still out on whether or not this is indeed the future of finance. Bitcoin definitely has its proponents, including Tim Draper and Winklevoss twins, who invested considerable sums into the currency, but there are quite a few detractors as well.  Famously, Warren Buffet advised investors to “stay away” from it.

If you do want to understand all the intricacies of the world of cryptocurrency and understand whether or not this is something you are interested in, you’ll need to find a reliable source of information. And our blog will be happy to provide it.

The temptation is always there, but I would argue that it has rarely been as evident as it is now. In the rapidly evolving digital landscape new ideas come and go in a blink of an eye. And each trend seems to get an alarming amount of ‘experts’ with a business lifespan of a fruit fly. That was as relevant in an era of Facebook ads as it is in the new Bitcoin utopia.

Far be it from me to disparage any of you from pursuing your goals in an emerging profitable field, but I would advise approaching every such venture with respect and care it deserves. So, what are the basics of the successful business?

• Foundations

Do not disperse your attention. Formulate your goals and core values from the outset and let them pave the way from what’s to come. You are your most important asset, and trying to cover as many bases as humanly possible will not help your case, especially early on. Being first can be a tremendous advantage, but it only helps if you have tenacity, insight and acumen to build on that. Otherwise, you’ll be left on the forest floor, feeding the emergent growth while slowly wilting away.

• Information

Get educated in the topic and industry you want to pursue. Don’t simply rush into something promising without the clear understanding of what the risks are. No formal education will make you a business savant, but you should never underestimate the power of information. There are few things worse for an entrepreneur than following someone blindly, even if they promise you a city where the streets are paved in gold.

• Connections

Few of us are truly solitary creatures, and no serious entrepreneur can afford isolation. Your relationships are both your opportunity network and your safety net. The trends come and go, but the connections you’ve established with partners, affiliates and business associates last. When push comes to shove, you need someone that has your back, and that’s not something you can get while hopping from one opportunity to another.

• Marketing

No matter how good your business idea is, you need a marketing plan. That’s not optional. Luckily for you, getting the word out about your business has never been easier. Social, SEO, content and email marketing are all very accessible these days, and neglecting the opportunities they present you with is borderline criminal. Leads are essential for ensuring a steady revenue stream, and obscurity will bury your business faster than any crisis.

Every trend is an opportunity – there’s no denying that, but you need to know what you are and what you want. Some opportunities are better left to others. Always aim to move forward, and constant lateral moves won’t help you with that.

This is not the first foray into the Blockchain technology for the foundation, as they have been researching it at least since 2015. Their Level One Project aims to integrate the poor people around the world into the larger economies by making digital finance more accessible around the globe.

The latest initiative is called Mojaloop, and, according to the official press release, this is what it intends to provide:

Interoperability of digital payments has been the toughest hurdle for the financial services industry to overcome. With Mojaloop, our technology partners have finally achieved a solution that can apply to any service, and we invite banks and the payments industry to explore and test this tool.
Kosta Peric, Deputy Director, Financial Services for the Poor, at the Gates Foundation

Mojaloop incorporates Ripple’s Interledger tech, but it’s far from the only financial technology partner involved in the project. The Gates Foundation has proven to be an effective unifying force in the past on a number of similar projects, which makes this attempt to bring inclusivity and interoperability into the world of digital finance an incredibly promising venture.

If you look at what has happened in the past when it comes to reaching those type of heights, be it tulip bulbs or a bunch of other things over the centuries, the odds are against those who actually think that this is going to be the future.
Stefan Ingves, Governor of Sveriges Riksbank

So, what should we expect if this cryptocurrency surge is indeed a bubble?

The prices will most likely fall and become a lot more stable. Current volatility actually works against the cryptocurrency’s main purpose – facilitating access to the financial services. If the cost of blockchain transactions can increase tenfold or more in a very short period of time  due to the price hikes that become rather common, how can we expect to build a stable foundation for anything?

A significant number of currencies will fade away into oblivion, leaving only the most common and stables ones. Bitcoin and ethereum appear to be the two most likely survivors at the moment. There seems to be enough momentum behind those two to keep them afloat even in the grimmest scenarios. Provided the volatility issue is dealt with, these currencies can indeed become a significant part of our financial future, even if traditional banking is not likely to disappear altogether.

It’s certainly a contentious issue, especially in the modern world where elections can be swayed by the social media campaigns. Who, if anyone, should be able to control our social media presence?

Quite a few people would argue that governments and corporations should not have a say in what we do in our private lives. And a decentralized social media platform might be the way forward. Currently, the best way to achieve that seems to be the technology behind the cryptocurrencies – the blockchain. And this is not the stuff of a far-fetched future.

onG.social is gaining momentum and has a chance to revolutionize the way we interact with social media. It claims to be both simpler and fairer to the end user. Backed by IBM since 2014, the emergent platform promises stability and security along with rewards for the most prominent contributors. The content posted on onG.social can be automatically mirrored on other social platforms like Facebook, G+ and LinkedIn.

Needless to say, this holds a lot of potential for businesses, as with this platform they will be able to reach new markets that have previously been inaccessible due to the state censorship.

It is difficult to underestimate the importance of such research in the face of alarming volatility that seems to be inseparable from the cryptocurrency markets. It might provide the solutions to the issues the industry is currently facing and establish the baseline for cryptoasset evaluation in the future.

The current market is ultimately unsustainable and incredibly volatile, so any attempt at serious scientific analysis is very welcome. The industry insight is provided by Beryl Li – CapchainX CEO.

Despite the skepticism towards the surging and volatile cryptocurrencies, UBS is pretty optimistic regarding the broader issue of blockchain technology. Here is what the report has to say about this:

While we are doubtful whether cryptocurrencies will ever become a mainstream means of exchange, the underlying technology, blockchain, is likely to have a significant impact in industries ranging from finance to manufacturing, healthcare, and utilities. We estimate that blockchain could add as much as USD 300-400bn of economic value globally by 2027.

 

Shrewd investors should be focusing their attention on the tip of the spear of the blockchain tech – companies that enable its adoption and use the technology in interesting new ways. And, as the report states, the applications of said technology are almost limitless. While some industries stand to gain more from the integration, most of them will likely benefit from the tech.

Another important point of the paper is its prediction about the bright future of hardware manufacturers, whose products will be vital for blockchain network realization. The processing speeds vital for the technology will undoubtedly mean increased business for companies that produce the necessary hardware.

Bitcoin and other cryptocurrencies might be best used for storing value, at least at the moment. It is also difficult to escape the notion that the value of these assets has not yet peaked and will continue to go up in the foreseeable future. While this is not entirely unreasonable, the more conservative financial institutions tend to agree that the current situation appears to be a bubble. This does not bode well for a lot of the cryptocurrencies out there which are likely to go out of existence in this scenario. Nonetheless, most investors should be able to mitigate the losses by spending some of the initial profits.

Another major reason is sheer inconvenience of cryptocurrency transactions at the moment. Simply put, there is no universal solution that would govern these interactions, which significantly hinders widespread spending.

Finally, we need to address the exorbitant costs associated with cryptocurrency trading. If you’re looking for any sort of standard or uniformity here – you’re in the wrong place. Expect to pay for every transaction, and most exchanges introduce their own rates. This is hardly a problem for those who hold on to their currency and simply sell it in large quantities once in a while. Any frequent trading, though, is almost out of the question due to these policies.

Good news is that things are starting to change, and a number of promising startups are seeking to simplify the process and enable cryptocurrency spending on a larger scale. Hopefully, that will indeed make the cryptocurrencies the money of the future.

But what does the advent of cryptocurrency and blockchain technology mean for the future of marketing? Here is what we think the marketers should keep in mind.

A large part of the of the cryptocurrency’s appeal is a promise of anonymity. As privacy concerns grow among the consumers, it is not difficult to understand why a lot of them might turn to blockchain technology in an effort to reduce their digital imprint. This means one thing – the wealth of information we currently possess on users due to the platforms like Facebook willing to sell their data might be a thing of the past.

The information about the transactions has the potential to become completely anonymous, and that is a serious blow to marketers’ ability to study purchasing habits to determine customers’ preferences. The rise of new networks like Steem or SocialX means that there’s now an alternative to the established social behemoths, and while it might take a while for the general populace to catch on to this new world, dismissing it would be unwise.

This means two things:

• Marketers will need to figure out new ways to collect data about their customers and bolster their current strategies to stay afloat.
• In the decentralized future where blockchain technology has been widely adopted, marketers might need to go directly to consumers for the information they need.

Regardless of the impact of the cryptocurrencies on our current systems, we should be able to adapt to the future. It’s reasonable to assume that consumers will not wish to part with their data as easily as the platforms do now, not without a fair compensation. On the other hand – what could be a clearer indicator of interest in your brand than a consumer making a conscious decision to give up personal information?

Until now, every major drop has been accompanied by high volumes, with low volumes leading to significant hikes. It’s not the best dynamic, as it shows that the supply overtakes the demand. We might be at a tipping point for the currency – something known as the “Last Point of Supply” or simply LPSY. This means one thing – the highest price point in this cycle has been reached, and we are looking at the downward trend in the nearest future. The demand has pretty much been exhausted at this point.

This does not mean that the Bitcoin value will plummet, but we should be prepared to see the lower end of the trading range. There should be enough momentum to stabilize the prices and check the price drops, however, passing the LPSY means the prices are on the way down.