Lonehert pink and blue

My Thoughts About Bitcoin (art.darkp.com)

Lonehert pink and blue
Loneheart Pink and Blue Coinbase invite

Before the end of last year I put a few dollars into an online app I had been keeping on my iphone 6s called Coinbase…

So what is Coinbase you ask. It a place where you can buy, invest in and hold something called Bitcoin – a cryptocurrency that acts as a store of value to barter things with. I been investing in the stock market for over a year now, trying to learn more about stocks and value using a hands own approach, and overtime I have had a small gain in the stocks I invested in. It’s nothing to write about because the gains are not making me rich or anything, but I was curious so I place my mone where my curiosity was. I had the Coinbase app on my phone for a little over a year, and I would just look at it once in a while wondering why the Bitcoin number kept going up. My curiosity with investing and my curiosity with what this crypto thing actually was was starting to get the better of me when I witnessed the price shoot up form 10,000 to near 19,000 over the course of a few months. It got me investigating. It got me off the sidelines. What is Bitcoin…

Well Bitcoin is based on a technology called blockchain, and from what I learned blockchain is an electronic verification system that hold information on things that happen inside of a cryptic secure space. Think of it like a ledger of receipts. If I purchase a good from you, a bill of sale, also known as a receipt should be generated that I bought something from you. If I lent you money, a receipt should be generated saying that that loan exist. However blockchain goes beyond just this. From what I understand let say we just wanted to keep the existence of an exchange between us. Well Blockchain will encrypt the information, breaking it up into keys and sending it to places that can then verify that the event actually happened. The place it goes to be verified is known as mining servers. These mining server are where people can verify it’s existance and sell it as verified information. This information controls the price of the currency, and people can buy sell and trade on this price. My explanation of how I believe it works is getting kind of long so I will present this video that may better explain it.

So the question is…

Can there be value in cryptocurency? Many experts in banking, business, and finance have been ask this question from Warren Buffet to Jamie Dimon and they have all given their opinion or lack there of when it comes to the value of the coins. I’m not a market analyst not do I believe I can provide a clear answer given that this tech has been around for almost a decade as of this writing. But I do have an opinion as one who create “unseen worthless art.”

My analogy is that Crytpo products are very much like art. There is no value in it after it has been created unless someone is willing to give something for it. Me being the artist giving my time to make the art makes it valuable to me, but unless I can trade it for something, be it currency, services, or other types of art the value remains stagnate. It may take 100 years of survival before someone [maybe] sees some worth in its creation. Until then its worthless. This is how cryptocurencies like bitcoin or another should be view. Always keep in mind though, things that are usually hard to come by are eventually worth much more in the long run.

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