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"Our wretched species is so made that those who walk on the well-trodden path always throw stones at those who are showing a new road."
Today I want to give you just a quick look ahead at a fascinating topic we'll delve more deeply throughout the next week…
I find it hard to fathom the many life-changing innovations that have occurred in my lifetime. As I look back, there is a definite theme to the introduction of these advances: lasting innovation is rarely embraced on the first try.
One of the earliest innovations that I can remember happened when I was a young boy and color TV became prevalent. It took more than a dozen years (from the first color broadcast of the Rose Parade in 1954 until the mid-1960s) for color to be widely accepted, and 18 years from that first broadcast for the sale of color TVs to outpace black-and-white sets.
By the time I was in college, the first IBM/Microsoft OS personal computers were introduced. Again, it took more than 10 years for sales to move into the home in significant numbers, and that was thanks to the new widespread availability of Internet access.
I could list more – cell phones, HD TV, etc. For each of them, even in this age of rapid technological advancement, it has taken at least a decade to move from first commercial use to widespread use.
This brings us to transactional technology. Credit cards were the last widespread innovation in commerce transactions. They were a rarity until the 1970s (with the original bank card, or "open-loop" card, introduced in 1966 as the BankAmericard).
Thinking back on this, I watch all of the Sturm und Drang over Bitcoin with great amusement – and interest. I'm not a Bitcoin fanboy, nor do I believe it is a worthless endeavor. After doing a good deal of research on Bitcoin, here's where I've landed: Whether it flops or becomes a household name, I see Bitcoin as a necessary and ultimately useful step in the innovation cycle.
But in order to profit from it, you have to understand what it is and where it's headed…
The Cryptocurrency Everyone Else Will Regret Not Owning: To See Tom Gentile's No. 1 Crypto Pick and Exactly How to Trade It, Click Here Now
Even though there are many other "coins" out there, Bitcoin is by far the largest. So for this primer, I'll talk about the basics of Bitcoin and its protocol, leaving the distinctions from other coins for a later article.
(As a readability note – the current capitalization protocol for Bitcoin is to capitalize the "B" when talking about Bitcoin as a protocol and to use a small "b" when it's referenced as a currency.)
A Bit of Clarity on What Bitcoin Is (and Isn't)
Since there is a lot of misunderstanding about what Bitcoin is, I'd like to take a shot at making a very brief primer on the key aspects of this phenomenon as I understand them. Please bear in mind these are the important aspects from my viewpoint – if I missed anything that you hold near and dear to your heart, please let me know using the comment section at the end of the article. With that being said, I believe these to be the most important things about Bitcoin:
About the Author
Nationally recognized technical trader. Background in engineering, system designs, and risk reduction. 26 years in the markets.