EVERYBODY LOVES BITCOIN

Bitcoin for a lot of people is a new term which is making the news, hitting record prices. Here we give some insight on this new form of currency, and what it means for our industry.

A lot of negative speculation has surrounded it since its conception, even today despite rising from €10 a coin in 2013:

“It’s a dangerous volatile bubble…”

Says ‘top’ economist Stephen Roach. Generally, I find that these people seem to have no grasp of the exceptional technology, mathematics and cryptography involved, and in my opinion, Bitcoin is here to stay, and so too are the best of the competing ‘Alt Coins’ who are all battling for market capacity, and finding their niche in the process.

I have long been a fan of crypto-currency, and have owned several Bitcoins over the years, even attempting mining in early 2013 on my budget Dell laptop. Sadly to no avail, I cashed out way too early and abandoned the mining after a few days for the fractions of a cent it was generating. Although I loved the concept and the genius of the ‘Blockchain’ I didn’t have much faith in it succeeding in a world run by Goliath banking firms.

The previous 3 years saw little growth with Bitcoin, as with many new technological ventures the average person can be slow to accept it. Much like Elon Musk’s first company Zip2, which was like a Golden Pages for the internet in 1995. Convincing people to the benefits of online advertising was an uphill struggle at the time. Times have changed this year though, and Bitcoin is slowly being recognized by governments and even dubbed as an emerging asset class. Most countries in the world, have recognized Bitcoin as a legal method of payment. Russia, once a staunch opponent of crypto-currencies, has taken a U-turn and said that in an attempt to combat money laundering, the Russian authorities hope to legalize Bitcoin and other crypto-currencies as a financial instrument in 2018.

I wont attempt to explain how the Blockchain works or its benefits, there are many useful guides online:

https://www.lifewire.com/blockchain-explained-4150034

https://www.coindesk.com/bitcoin-explained-five-year-old/

Today, although I think the price of Bitcoin will continue to rise (with inevitable dips along the way) the smart investor will be looking to the ‘Alt Coin’ competition. There are officially 1334 recognized crypto-currencies currently on the market. Many have seen similar meteoric rises as Bitcoin.

Ethereum could be bought at less the €10/coin at the start of this year and is now dancing around the €400 mark. Its not unusual for these coins to jump 300-500% in a week as new mergers and deals are announced. In the past month IOTA has risen 900% as they announced partnership with corporate heavyweights, including Microsoft, Samsung, Cisco.

I think the future is bright for crypto-currencies, As the world becomes less stable the need for Bitcoin will increase. The banking system has also been badly in need of a shake up, high fees and long transfer waits could be a thing of the past. The transparency and security of the Blockchain are its driving force. Hedge fund legend Michael Novogratz who predicted the Bitcoin rise this year with amazing accuracy, has now predicted Bitcoin could hit $40,000 by the end of 2018.

Although the crystal ball remains murky, I think it’s definitely a case of Watch This Space!

THE TYRELL TAKE – THE INTRINSIC VALUE OF BITCOIN

In between a movie script and the audience that eventually views a film sit a gaggle of stakeholders, all taking their cut. Producers, studios, distribution networks, product placement agencies, agents, TV networks, lawyers and talent agencies must all be paid. U.K.-based production venture ‘21 Million’ hopes to turn the entire process on its head, starting with funding.

’21 Million’ is a TV thriller, a series set in the world of crypto-currency and espionage. But the innovation of the series goes beyond its subject matter: it’s using the Ethereum blockchain to fund its production. Half of the tokens used to fund the production were sold to investors in the show’s June initial coin offering. The other half is being distributed to those participating in production.

As the TV series begins to make a profit, the revenue will be allocated to token holders based on their holdings, meaning that the more tokens you hold, the more you will get paid. This effectively turns the tokens into royalty points. The beauty of the royalty-based token system used by ‘21 Million’ is that token holders are compensated based on their input (the producer will probably have more tokens than the first grip, for instance)

So for the first time ever an average Joe can effectively bet on the profitably of a Movie/TV Series before it even goes into production using the Blockchain technology as a reliable vessel and production houses have the ability to cut all the red tape normally involved in getting a project off the ground.

This is just one of the many ingenious ways people are manipulating this technology, and doubtless there will be many more uses of the Blockchain concept.

As digital disruption continues throughout all industry sectors the fundamentals remain true, and Tyrell’s position is to ensure we are versed in all aspects of technology. Transferring knowledge and delivering value to our customers will always be our number one priority.

Contact us today to find out how we can help with your digital project.

Published from The Tyrell Blog: https://www.tyrellcct.com/everybody-loves-bitcoin/