Posted January 7, 2018 by Joshua M Brown I wrote A Twist in the middle of December after attending a dinner discussion group of some of the leading engineers and software people on Wall Street. I came away from the night with a newfound appreciation for the argument that just because blockchain is revolutionary, that doesn’t mean most (or any) of the value would accrue to the coins and tokens themselves. Today you’re in for a special treat, a guest post about a fatal mistake that many investors are making right now when it comes to crypto assets and coins – the inability to distinguish between market value and intrinsic value.
It was written by The Unassuming Banker, a long-time reader of mine who posts pseudonymously at his blog of the same name. With his permission, I share the piece in its entirety, and I really feel you cannot afford to skip the point he’s making here.
I hope you enjoy this. – Josh Let’s start our discussion with the technology which made Bitcoin possible called “blockchain”.
In very simple terms the blockchain technology is a record of all transactions ever done in Bitcoin. Imagine a gigantic piece of paper that lists every transaction ever completed.
Then imagine that there are thousands of copies of this paper, and all of them are automatically updated when any two people agree to exchange Bitcoins. Every time a transaction takes place all these copies are checked for consistency to make sure you actually have the Bitcoins you claim to have. Read more from thereformedbroker.com…
thumbnail courtesy of thereformedbroker.com