Crypto, Blockchain, & NFT’s
Imagine owning one Bitcoin (BTC) in 2011 with the value of $1. Or imagine even owning half a Bitcoin (BTC) at .50 cents. Hypothetically speaking, you would be sitting on $23,721.63 as the time of this writing. However today you sit back and think to yourself, what if?
“Bitcoin’s price has had a bumpy ride, to say the least. For the first couple of years, the crypto had very little value, as it was mainly used as a novelty between the few, select early adopters.“The History of Bitcoin: A Complete Timeline of the Start of Web3 | History Cooperative
It would be normal to think that the Bitcoin (USD) ship has sailed, however what if we were at the beginning of another “What if” episode? What if in 2027 we would be reflecting on 2022 and how we should have been paying attention instead of Facebooking pictures of our pets? Well, this is your wakeup call! Here are three words that you should be absolutely familiar with going into 2022:
To simplify, cryptocurrency is digital money. There is monetary value behind each token. It lives on the digital home of Blockchain, which we will get to in a minute. The value of a coin or token goes up and down like the stock market. Cryptocurrency like hype-coins for example are considered very volatile or high risk. Gen-Xers like me are thinking “what’s the next Bitcoin going to be?” However what Baby Boomers cannot get passed is that you can’t physically touch it. The main purpose of cryptocurrency is having alternatives to bank regulations and transactions. Yes, you still pay taxes on gains, and there is great debate on whether cryptocurrency is actually a currency or asset. However, my toddler son will only know cryptocurrency someday.
Now there’s a word that is utterly confusing. WTF is a Blockchain? Without Googling it, I’m going to attempt to explain it on how I interpret. Blockchain is the Internet of the future. It’s a living breathing digital ghost that is impeccable in keeping every crypto transaction on record and making sure your 00.00009 Bitcoin that your cool Grandma gave you for Christmas is not being used by anyone else. It’s a ledger, the ultimate spreadsheet, it’s the heart and soul of inventory week. Without the Blockchain, Cryptocurrency is not possible. I call it the Internet of the Future because of the growth and capabilities to host more than just transactions. Which brings me to non-fungible tokens or NFT’s.
If it wasn’t for “small-talk” with relatives at my parents Christmas Eve party this blog may not be possible. Especially talk about NFT’s. My first true attempt of understanding NFT’s was replacing the word “fungible” with “tangible.” Even though the two words sound the same, they are not interchangeable. However, when I think tangible, I think non-tangible, then I think digital. So NFT’s have something to do with the digital world. The word “Token” makes me think of the “rings” in the Sega version of Sonic the Hedgehog game. (Yes, I’m that old.) Again, the word “Token” makes me think of a digital asset. I can accumulate hundreds of sonic rings, but can I put them in my pocket? Now the word non-fungible. A fungible item is able to be replaced or replicated. So non-fungible means there is only one. There is only one digital form of this item is basically an NFT.
My goal is not to get you to invest your hard-earned money in crypto and NFT’s. My goal is to encourage you to do your own research, make an effort to understand, and to start a conversation. I am convinced that cryptocurrency, blockchains, and NFT’s are here to stay. They will be spoken of in the same way we understand the Internet today. In the same way we send a text, email, or post. It will be second nature for this technology to be embedded in our everyday life. And who’s know you might just stubble upon the next Mona Lisa in digital form!