Unless you have been in living in a cave or shipwrecked on an uncharted island you have heard of Bitcoin. If you were paying closer attention you might even have heard of Blockchain technology that is foundation of Bitcoin and other Crypto currencies.
What do I Care?
Once remember a high level manager saying in response to a request: ”A computer for each person, are you insane! Why do you need email there is a phone right beside you. WordPerfect, we have the latest typewriters in house.”
We can look back and laugh at that now. That manager had a good heart but no vision.”
How about you today? Are you looking forward and seeing the possibilities? Many processes that our now performed by entire departments could theoretically be performed by one or two people utilizing smart contracts with an Altcoin like Ethereum.
Material certs, accounts payable, account receivable, transferring money around the world fast and cheap are just a tip of the iceberg.
Businesses not studying this technology will put at a huge competitive disadvantage. Employees should really prepare themselves reality of the changing technologies. This very simplistic overview is to incite your curiosity to do more research on the subject.
What is a Crypto Currency?
Crypto currency is digital money that is designed to be secure, programmable and anonymous in some cases.
What is it used for?
It’s used as a value of exchange similar to dollar, ruble, frank or pound. It can also be used to trace, track and verify anything of value.
What are its Advantages?
Value can be exchanged worldwide peer to peer without a trusted third party. Trusted third party examples would be Western Union, PayPal and MasterCard. Fees to transfer money are a fraction of the cost of trusted third parties. Buyer and sender can be anonymous plus with advent of programmable coins payment parameters can be automated and automatic.
How many type Altcoins are there?
Thousands but the top five by market cap as of today are Bitcoin, Litecoin, Ethereum, Ripple and Bitcoin Cash. Note all coins other than Bitcoin itself are referred to as Altcoins.
What distinguishes one from another?
Each coin has what is called a “White Paper” that describes its purpose for existence and what problem it’s trying to solve. Through the use of blockchain technology the double spend problem was solved and Bitcoin was born. Just like you can’t give the same dollar bill to someone twice you also cannot spend same Bitcoin twice. But there is a problem with scalability speeds and block size that are being solved in new coins such as Bitcoin Cash. Many new coins simply solve or improve upon current coins.
Is it a Fad?
Bitcoin by itself has a market cap of 16 billion dollars and has experience phenomenal growth since its inception 2009. There is large community of people who believe that business and government manipulation of their current fiats are actually more damaging to economies than crypto currencies that like gold have only a finite supply. It’s interesting watch Captains of established industries struggle to accept a currency they cannot easily manipulate. You make the call.
There are many Altcoins that are simply scams so buyers beware however it still behooves the Lean Management Team to study this subject while in infancy of adoption.