Lately Bitcoin has seen a rise in investment interest, and that is reflected in its value, which has risen nearly 180 percent in 2019. However, the new form of currency, while unique, is not where the true value lies. The real value can be found in the system behind the currency – blockchain. The true, industry-transforming potential may not be bitcoin. But Blockchain, is an entirely different story!
Bitcoin’s popularity and the value associated with it fluctuates as the hype comes and goes. The basic point of Bitcoin is to enable businesses to collect and send secure digital payments online. While it is a good idea in theory, not everyone is equipped to (or knows how to) use this new technology. Hence, this has limited its progress, and significant time will be needed to reveal Bitcoin’s potential as more and more users become familiar with how to navigate this new form of currency.
As an investor or entrepreneur, it may be better to focus on blockchain rather than Bitcoin. Bitcoin is simplistically just a few form of currency. It may take off, it may not. It is a speculative investment in a currency that may, or may not, be adopted in the future. Blockchain, on the other hand, is an advanced form of technology that is revolutionizing industries all over the world. In a sense, blockchain is the technology that’s under the hood and gives Bitcoin the opportunity to be a viable digital currency. Blockchain is basically a digital record of transactions that is stored in a distributed ledger across the network. It leverages cryptology and creates permanent records that can be added to, but not altered, That said, blockchain is most influential when it’s used by already-established companies that build new platforms to incorporate the technology. The following are just a few of the solutions that companies can use blockchain to create.
Unlocking Assets
Historically, raising funds to build assets, such as with real estate, required paperwork and lawyers. With blockchain, this could be a thing of the past. Developers could use digital tokens to represent real value. Multiple investors across the globe would be able to buy into real estate classes. These classes, now maintained in the digital world, could then appreciate in value and provide a return.
Investing in Assets
You can use blockchain to take real assets, convert them into tokens that represent real value, and allow people to invest in these assets. These assets could also then be traded or exchanged in a digital world. Potential investors could purchase tokens of value for that asset without drawing up contracts and using lawyers.
Digital Rights Management
Blockchain is a great method of managing the rights to assets on the internet. Every day, assets such as images, music, or code are dispersed into the maze that is the internet. Owners can use blockchain to track, control, and manage the rights to their assets like never before. This would give the opportunity for the actual owners of the rights to an asset to receive appropriate royalty payments that otherwise might have been lost in the cloud.
Rewards for Customers
You may be part of a rewards system, such as with your favorite store or restaurant. Those establishments often offer incentives like coupons and promotions for their customers. Blockchain has the potential to develop these incentives based on tokens of value. These digital tokens could then be traded in a digital marketplace! People would be able to trade tokens they don’t need for ones they want in a secure fashion. The brand doesn’t lose out. They’ll still be gaining a new customer.
Bitcoin is a popular, yet speculative, innovation. Many experts, however, understand that true value probably lies with the technology that makes Bitcoin viable – blockchain. I believe that much of the speculative risk can be avoided by seeking investments in blockchain versus the volatile Bitcoin alternative. I expect blockchain to be leveraged across numerous industries, including the establishment of digital currencies such as Bitcoin. This has already started, and I expect the trend to continue.