Blockchain money doesn’t mean crypto money
Happy weekend cypherpunks, let’s go for the second polemic topic, a base concept error that make crypto for you a religion and not an investment. And don’t feel bad if you’re in the first group, because be conscient about it is the first step. The only fault that you did is base your knowledge on influencers and youtubers that claim “hodl” and “to the moon” as main characteristics. But let’s fix it, soon I’ll do a post about where to base out knowledge (as a recommendation, but you’re free to continue with influencers).
If you’re here I can assume that you love Blockchain technology and cryptocurrencies but… let’s split both concepts, because they are not the same. Blockchain is the technology that stores information by a ledger, distributed in various connected servers. Cryptocurrency is a digital currency that uses Cryptography to verify transactions and Blockchain to store that information. I tried to simplify both concepts as much as possible because actually we don’t need to go deeper.
As you can appreciate, Blockchain is just the technology that cryptocurrencies use, as websites use the Internet for example. After this long introduction I can go over the point that I was thinking about and I’ll divide it into various aspects that I want to explain (if you have some other interpretation or perspective feel free to comment below).
Why do you understand as bullish for actual cryptocurrencies the implementation of Blockchain in a company?
I mean, we are investors so we need to think about a return over our actual portfolio and a massive adoption of Blockchain technology isn’t the event that will help us. Don’t misunderstand me, this technology is awesome and can report other types of benefits as a major transparency and a higher efficiency with the related reduction of costs. But most of the Blockchain implementations will be without a cryptocurrency introduction, so you’ll be unable to invest on it. Think about the real purpose of an actual token and for what a company would use it, sure that not for letting you make money.
Another common thought is that the companies will use the actual Blockchains like Ethereum for their own purposes. I’ll not put adjectives about what I think about this type of commentaries because maybe they will ban me from my account. But thinking from the business point of view, you can guess that they’re not going to pay the fees for miles of tx per day if they can do it for free (digital infrastructure costs) with their own Blockchain. I leave you here a website that you must investigate a little bit (https://www.hyperledger.org/) to obtain some personal conclusions.
Now you can understand that just holding your cryptocurrencies makes no sense because your assets will probably be obsolete, so think relaxed about them again. Blockchain evolves really fast because there is real money and development, crypto is just the visible head of the iceberg in which we try to make some ice cubes.
“This is the Way”
