Bitcoin and blockchain technology is such a new concept that only a small number of people (other than hardcore techies) can explain what it exactly is. It’s a bit like a Kardashian — nobody really knows what it does or why it’s famous, but everybody’s heard of it. But unlike a trending TV family, cryptocurrency is here to stay, and its future is vast and exciting. 

But seriously, what is it? 

To understand cryptocurrency, we must start with blockchain technology. Think of an old fashioned ledger where a business logs each transaction. Mr. Johnson at the pharmacy sold you a toothbrush, you paid for the toothbrush, and this transaction was recorded in the store ledger. Blockchain is a digital version of this ledger. But unlike a paper log, blockchain is honest. Let’s say Mr. Johnson, who owns the pharmacy, wants to cheat on his taxes. He could go into his paper ledger and rearrange the facts according to his version of the story. With blockchain, he’s out of luck. Once a transaction is recorded in the blockchain, it’s public record and cannot be altered. Sorry, Mr. Johnson — blockchain keeps things honest! 

Okay, fine. What’s Bitcoin? 

Cryptocurrency, such as Bitcoin, is built upon blockchain technology. It’s a system for buying stuff online that allows suppliers and consumers to connect directly — without the aid of a third party like a bank or a credit card company. And because it’s based on blockchain, there’s a public record keeping it transparent. This “public record” is actually a network chain of computers keeping track of all transactions, making it virtually impossible for a bad guy to cheat the system or fake a transaction. 

Popular cryptocurrencies are: 

Bitcoin 
Ethereum 
Ripple 

Cool story, Bro. But What Does Cryptocurrency Have to Do with Me? 

Globalization — you are a world citizen. With the planet becoming a smaller place, we need a modern currency that reflects how business is conducted globally. Soon we won’t have the yen vs. the dollar vs the euro. In its place will be an “Earth Currency” like Bitcoin. Cryptocurrency and blockchain are changing the face of how we do business. 

Cryptocurrency is: 

100% secure — Payments can be made without any personal information attached. Guards against identity theft. 

Freedom — Send transactions at anytime, anywhere in the world. Users are in charge. No borders, no bank holidays and no limits. 

100% honest — Perfect for battling election fraud, or ANY fraud involving finances. 

For the People! — Takes the power away from banks and world governments. 

The Downside of Cryptocurrency: 

Bitcoin and other cryptocurrencies carry some risk. In just a few months’ time, Bitcoin experienced 3 major market crashes. Ouch. 

Risks of cryptocurrencies include: 

Volatility — Since a relatively small number of Bitcoins are in circulation, even small trades can greatly affect the price. This fluctuation will normalize once more come into circulation. 

Degree of awareness — many people just don’t know much about it. 

Small list of places that take it — Consumers are currently limited in the amount of people and places accepting cryptocurrency. 

The Future of Blockchain and Cryptocurrency: 

In the coming decade, blockchain and cryptocurrencies will continue to grow and gain acceptance, and applications will undoubtedly multiply. The names may change — Bitcoin may become the “MySpace” of cryptocurrency — however, the technology will endure and thrive.