May be the next bitcoin success - and therefore you should be careful about investing
Most people can agree that the potential of blockchain technology is high. But it's hard to predict what will be the winning technology.
Since the summer of 2013, the value of bitcoin has increased by about 15,000 percent, and the crypto currency has created both millionaires and billionaires over the past couple of years.
Over the past week alone, the value of bitcoin has risen from 12,000 to over 16,000 dollars, and according to Saxo Bank's 2018 predictions, the value of bitcoin crosses $ 60,000 in the next year before the curve breaks.
The staggering price increases - and for some gains - have prompted both amateur and full-time investors to wonder how to invest in crypto and blockchain technology.
The price increases are largely due to speculation. And financiers from both J.P. Tomorrow and Goldman Sachs have previously warned people not to throw themselves into investment in crypto currencies.
The definition of speculative behavior is investing from people investing in something they do not know what is to get a quick financial gain. There are very few people who understand what it's (blockchain and kryptovaluta red.) Is about. This can be used as a sort of common sense filter. You might understand what Danske Bank, Novo Nordisk and Carlsberg do, but do you really understand what bitcoin is? And you can distinguish between bitcoin and ethereum, says Investment Director at Saxo Bank.
Bitcoin's closest 'competitor'
Ethereum is often the first to be mentioned as an alternative to bitcoin.
This is also the case with Lasse Birk Olesen.
He is co-founder of the Coinify company, one of the world's leading companies in the field of online trading with digital currency and the underlying blockchain technology. A kind of exchange for crypto currencies.
If I only had to follow two currencies, it would be bitcoin and so ethereum. It is clearly the largest and the one that most knows (besides bitcoin, ed.). Right now, there is the greatest security in transactions and the greatest security compared to not being hacked, he says.
Bitcoin works as a currency, while ethereal is what is called an encrypted application string.
Etherium is not an application in itself, but a control system, like Windows and Mac. Ethereum completely opens up what you can use blockchain for. I see blockchain as a world-wide computer that everyone has access to, and here is the ethereum that you can run through all of the apps. You can run contracts through ethereum, and you can run decentralized computing where you rent computer power through other companies. Every time someone does something new and builds on the ether room, it also makes everything that already exists more attractive.
'Most are some bras'
The breakdown of bitcoin occurred back in August this year. After several years of disagreement in the bitcoin environment, the crypto currency was divided into two. The breaker is called bitcoin cash.
It is after all the third largest, based on total market value. It has introduced some scaling feats that allow it to handle more transactions than bitcoin can. But if it's interesting, a bit depends on what happens to bitcoin.
Most of them are some bras. If you are taking ripple - which is meant that banks can make international transfers to each other - they have issued a currency called XRP, but I'm not so crazy about it. Primarily because it sounds like it's very centralized. It is managed by a handful of servers who, as far as I know, stand in a basement somewhere in California. And among all these currencies, there is a very large part still in the company that makes ripple. So they have a lot of power and can suddenly dump the price.