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WHAT THE HECK IS CRYPTOCURRENCY?

In a webinar hosted exclusively for our Gerber clients, we were joined by Matthew Horne, head of Business Development in the Digital Fund Division of Fidelity's Cryptocurrency team, to help us debunk the myths around cryptocurrency and understand the exciting opportunities in this new space.
 
Want to find out exactly how cryptocurrency may fit into your own investment portfolio? Read the recap below!
 
WHAT THE HECK IS CRYPTOCURRENCY?
 
Bitcoin, the first and most widely known cryptocurrency, officially launched in January 2009. The idea of creating a digital store was immensely intriguing, and legacy banks and asset management firms were proving solvent.
 
The key difference between cryptocurrency and the types of currency we are familiar with today is that it is decentralized, meaning that it is not controlled by a banking institution, and is not regulated by any governments.
 
To help illustrate the concept, Horne compared bitcoin to a digital version of gold. Gold has been used by individuals and institutions for thousands of years as a store value.
 
WHAT IS A STORE OF VALUE?
 
Economists qualify something as a store of value if it is scarce, portable, has high settlement speed (meaning it can by transferred quickly), is verifiable, divisible, and has an established history.
 
Gold fits all these characteristics: it is scarce, easily moved and transferred, able to be chemically verified, split into smaller parts, and has a rich history of being used throughout human civilization.
 
Bitcoin is transferred through digital network of computers called a blockchain, making it extremely portable and quick to change hands.
 
Because of the stringent protocols on the blockchain network, and the individuals who monitor the bitcoin market, bitcoin is highly verifiable. Divisibility is possible with bitcoin as well: it can be divided up to the eight h decimal place, making it easy to purchase smaller quantities of bitcoin.
 
The only criteria that bitcoin does not fit is the established history, having only been used as a store of value for a little over 12 years. However, with investments by legacy asset management firms like Fidelity and more businesses accepting it as a valid form of payment, bitcoin is slowly securing its future as a premier story of value.
 
WHAT DOES THE FUTURE HOLD FOR CRYPTOCURRENCY?
 
Since 2013, the Fidelity Center for Applied Technology has been leading research on bitcoin functions and creating platforms for investors. These efforts see bitcoin as disruptive, and rather than investing in opportunistic ventures, are interested in creating sustainable programs to maximize the possibilities of cryptocurrency.
 
New bitcoin will be released until the year 2140, so the market is ripe for sustainable growth.
 
How well do you understand cryptocurrency? Are you using it in your portfolio? Share with us on Facebook, Twitter and LinkedIn!


INDEX
  • AN ENTREPRENEUR'S PLAYBOOK - PART 3
  • AN ENTREPRENEUR'S PLAYBOOK - PART 2
  • WHAT IS UNIQUE AND DIFFERENT IN VERY SUCCESSFUL PEOPLE
  • WHAT THE HECK IS CRYPTOCURRENCY?
  • AN ENTREPRENEUR'S PLAYBOOK PART 1
  • WHAT THE HELL DO I DO NOW?
  • SUSTAINABLE ENERGY & YOUR SMALL BUSINESS
  • INNOVATE, UPGRADE & DOMINATE
  • RECOVERING FROM THE GREAT PAUSE
  • THE VALUE OF INCLUSIVE LEADERSHIP: PART II
  • THE VALUE OF INCLUSIVE LEADERSHIP
  • DO YOU HAVE WHAT IT TAKES TO BE AN ENTREPRENEUR?
  • DEAL CLOSING IN UNCERTAIN TIMES
  • WHAT IS A CASH FLOW FORECAST AND WHY YOU NEED IT
  • LEADING TO SUCCESS - LEADERSHIP HIRING DURING COVID-19
  • A NEW KIND OF ENVIRONMENT - THE EVOLUTION OF PEOPLE AND PLACE DURING COVID
  • SUCCESS BEYOND THE GREAT PAUSE CONNECTION, CASH, CREATIVITY & COLLABORATION
  • THE STATE OF COLLEGE IN 2020
  • TAKE PAUSE DURING THE GREAT PAUSE: A WEBINAR FOR DENTISTS
  • GET A GRIP! AND GET WHAT YOU WANT OUT OF YOUR BUSINESS
  • YOUR LEASE IS UP, NOW WHAT?
  • LETS TALK PE MINORITY EQUITY: THE ALTERNATIVE SALES STRATEGY
  • BUILDING A BEST PLACE TO WORK
  • GETTING YOUR BUSINESS SECURITY IN CHECK
  • SONGS AT THE CENTER LIVE AT GERBER! PART DEUX
  • MOTIVATING THE HIGH PERFORMERS IN YOUR BUSINESS
  • WHAT YOU DON'T KNOW... WAGE & HOUR LAW IMPACT FOR BUSINESS OWNERS
  • INTELLECTUAL PROPERTY AS A VALUE DRIVER FOR YOUR BUSINESS
  • COMPETITION FOR CASH
  • FOR BETTER OR FOR WORSE
  • HIRING THE RIGHT CONTROLLER FOR YOUR BUSINESS
  • GUYS' NIGHT WITH GERBER
  • LADIES' NIGHT
  • BUSINESS GROWTH MADE SIMPLE
  • SONGS AT THE CENTER. LIVE AT GERBER!
  • UPSTREAM GRATITUDE: CREATING A CULTURE OF GRATEFUL EMPLOYEES WHILE INCREASING YOUR BOTTOM LINE
  • DIGITAL DANGERS AT HOME
  • ORGANIC CONTAINER GARDENING
  • COOK HEALTHY, COOK EASY
  • HIRING IN A HIGH-GROWTH ENVIRONMENT
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