What Bitcoin forget to tell you about Bitcoin

 In Blog, Employers Tips

So working in the finance industry I’ve started to attract the attention of worried family members who continually bury their heads in the sand and greedy uncles seeking a quick profit from what they envision me as the Jordon Belford of Wall Street.  Yea sorry I defiantly don’t perform office midget toss with my work colleagues at the weekly sales meeting.

So as I was saying, yes, I get financial attention now, especially in regards to a recent trend in what is actually an ever trending investment opportunity.  Bitcoin.

Ohhh here we go.  Bit coin was big news a few months ago and was abot to take over our modern banking system, according to the Bit coin fanatics. Its story is fascinating and kind of  sudden in its rise and how your pizza delivery guy sold his entire net worth, invested into Bitcoin and now he is a multi-billionaire.  No, sorry to disappoint you.  The article I wish to share with you is the underbelly side of Bitcoin and what your pizza delivery guy forget to mention.

Bitcoin is over 10 years old.
Despite what you might already know, believe it or not, Bitcoin is actually nearly 10 years old.  The initial conception is a bit hazy, mainly due to cryptographers and their hidden world on the dark web.  But once upon a time it was worth considerably less, in 2010 it was worth about 7 cents.

 

Nobody actually knows who invented Bitcoin.
Have you seen those T-Shirts that show the name Satoshi Nakamoto yes, he is said to be the actual marker of Bitcoin.  But the reality is that nobody actually knows.  The man on the t-shirt does exist but honestly, and he was the name utilised from original emails from the original creator, when the reporter found him, he had no clue was Bitcoin was, interestingly enough though he did live only a few houses away from one of the original cryptographers.  Recent trips into daily news reading found me to discover an article yesterday that even mentioned the possibility of Elon Musk to be its original creator, he did look good in that suit I’ll admit.  Look I’m now also seriously considering that famous chef Gordon Ramsay is the one and only.  C’mon Gordon…I know it’s really you, confess.

 

Bitcoin was used to purchase drugs, firearms and more.
Before Bitcoin was heavily regulated you could actually purchase drugs, firearms, stolen credit cards and more with Bitcoin.  How you may ask?  Well, you could take a trip down the silk road that’s how.  Because of Bitcoins controversial origins with the dark web and its concept for avoiding the modern banking system, an interesting gentleman called Ross Ulbricht decided to establish a website with various offerings on the dark web called the Silk Road.  You could transfer your money into Bitcoin and use Bitcoin to make the necessary purchase and have it posted to you, untraceable and delivered to you.  With bitcoin allowing for hidden transactions due to its blockchain system and the attached use of the dark web giving the ability to anonymous web surfing, it was a hidden world. As you could imagine this caused bold news headlines and eventually the silk road was closed by the relevant authorities soon after.  However, it gave all the heads at the table an eyes wide open gaze to what was now possible with cryptocurrency and what could be morally wrong, especially with its misuse.

Yea I know you, you are one of the millions who thought their 14-year-old son was just playing honest video games online and the following morning he received a percale for some so-called gaming equipment.  On a positive note, I guess it kept him off the streets.

Hackers have stolen millions in Bitcoin.

Its great, its secure, the pizza guy will never get robbed.  Alright I’ll stop insulting your pizza man.  But just know this, he might not be a worth as much as you think.  Many stories have now been written about theft of bitcoin.  A simple Google search will provide entertainment for the whole family.  $500 million here, $530 million Coincheck hack, $430 million from Tokyo, where does it end.  The world is in complete chaos!! Gordon Ramsay is the hacker, I know, he told me.

Well I guess if something is of inclining value its of value for attracting crime inclines as well.  That said, working in a financially industry, people still find it hard to contemplate that speculative investments attain speculative returns, like the potential loss from theft.  Look if you really want to purchase walnut trees from your neighbour’s friends in-laws sisters mother who you’ve never met but says it better than Amway then I would suggest maybe think twice.

 

Bitcoin miners are aiding global warming.

Look, just put down your ham sandwich and stop laughing at me.  You heard.  Bitcoin miners are aiding global warming.  Well according to recent statistics bitcoin miners are now consuming 0.13% of the world’s energy.  Honestly, if you told me that 10 years ago I would be laughing.  And to be clear, bitcoin mining is the process by which transactions are verified and added to the public ledger known as the blockchain.  Mining bitcoin to complete transactions with puzzles gives the miner a reward, in this case, the reward is bitcoin.  So as for global warming, I guess it further verifies that humans are the majority of the cause.  I did have thoughts my neighbour was up to something, I’m now certain it’s a labyrinth of bitcoin mining rigs in his apartment.

 

 

Crypto-currencies do have a future as does the technology behind them, Block Chain.

The Bit coin story will go down in history as, ‘I wish I got in early and sold early’, but the broader Crypto currency market is strong and the Block chain technology that drives these will transform our banking system in a positive way.

 

Clarence Wyatt
(07) 4041 2055

www.kellywealth.com.au

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