17 Jan Crypto Craze: What Does It Mean?
By Jesse Baker, CTB
It’s a new year, and it’s time to figure out what the crypto-buzz is all about. Many businesses are getting in on Blockchain and Cryptocurrency even though their main objective has nothing to do with the tech sector or doling out this new currency. Take a look at a tea company, for example, that changed their name from Long Island Iced Tea to Long Blockchain and quickly tripled its price. Or what about the parent company of Hooters? When they began offering rewards via Cryptocurrency, their stock prices rose a stunning 50%.
So why are companies getting in on the Crypto Craze, and what will it lead to? The obvious answer to the question is the demand to be involved in the newest get rich quick fad coupled with an almost complete lack of public understanding of this new tech. Crypto is big, but most of us can’t make sense of it or explain it. If you are interested, this video helps decipher some of the more difficult concepts.
Once you see that Crypto is huge because it is decentralized and can be mined on your own, you will also see the inherent risk. People believe Cryptocurrencies can’t be hyperinflated by excess production and they love the concept of government having less control of their money. However companies that create the currency do have the ability to increase or decrease the amount of currency mined when solving the algorithms, so there remains an entity in control of the means of distribution. And because these companies are not regulated, they run an extremely large risk of producing another bubble, much like the dotcom bubble of the late 90s–companies adding “.com” to their name in order to drastically increase stock value before selling quickly and getting out.
Blockchain technology will very likely change some if not many aspects of the transportation industry creating a more efficient transfer of contracts, documentation, and payments. Some industry experts expect Blockchain technology to revolutionize the industry; however, we believe it’s prudent to do your research. Staying ahead of the technology curve is important, and here at AM Transport, we’re keeping our eyes on Blockchain and Cryptocurrencies in order to keep you informed.
As with everything when it comes to your own money, keep in mind that purchasing and mining Crypto is completely speculative. Remember that Blockchain is an amazing technology which will play a significant role in the near future, but be sure to watch out for companies who claim Blockchain or Crypto technology hoping to capitalize on the name.
Keep your eyes open, read a lot, and be ready for a wild ride.