Sounds like a plumbing device.
But Blockchain is now ready for the world!
Picture a world in which there is only one currency – where financial transactions happen instantaneously, paperless, fully transparent and cybercrime-free.
Picture a world where there are no exorbitant bank charges, no fees. Picture a world where nearly every transaction from money payments to house transfers to share transfers to purchases of foreign currencies and LC set-ups – all these transactions without the need for a bank and at a cost that is substantially less than what you are paying now.
And then there is complete transparency on every transaction. All activity will be easily stored and available to you at a click of a button. In fact it will be very similar to the email system – all the information is available and easily stored in various files and sections.
You can be sure that the banks are in for a disruption that is unmatched. They can then get back to doing what they are supposed to do in the first place – lending money. But you can be sure that their profits will take a meaningful slide. When I look at my bank charges, I grit my teeth whilst my brain is counting up how much money they must be making from this unacceptably high cost. Believe me I have never shed a tear for a bank nor will I ever!
Coming up underneath all of this is the virtual money concept. This is already in play and it is called a Bitcoin. Currently the price of a Bitcoin is in the order of $904. It is a ‘currency’ that, at the moment runs outside the financial systems. There are approximately 11 million in circulation. The most fascinating part is that, in this vast algorithm that makes up the blockchain net, there are still about 11 million more to be mined.
As you are reading this, there are companies who have set up complex servers and programs to ‘mine’ more Bitcoins. It takes enormous computer power and one of the biggest problems in the whole process is keeping the computers themselves from overheating and burning up. It is not usual to find these installations in very cold places – the cost of the cooling systems are enormous.
The picture below will give you some idea of what a Bitcoin mine looks like.
As you can see it is simply rows and rows of server hardware churning continuously to discover the un-mined Bitcoins.
You can even buy a share in one of these mines and get allocated your portion on a daily basis. The following is one such site – http://www.dragonminingsystems.com/.
It is a remarkably interesting process as you are able to watch your dashboard each day to see how much is getting mined.
Just to give you some idea of what’s happening in the Bitcoin space, a Bitcoin was trading at $607 in September – it is now $904. A few weeks ago it was as high as $1,011.
I think we need to prepare ourselves for a very different world. Blockchain will transform the financial systems. And whilst you are at it sell your banking shares and your shares in paper manufacturers. We are really moving into a paperless environment.