Why I got into Crypto/Blockchain/Digital Currencies or whatever the heck you want to call it.
Digital currencies are on the verge of becoming mainstream as cryptocurrencies and blockchain are reshaping our world. Late last month payments giant PayPal gave 346 million people a new way to buy bitcoin and there are major news announcements coming out on a regular basis on a similar magnitude. For most of us in the industry, this news has been a long time coming. As CEO of Bluesky Digital Assets, it has been a time for reflection on what this all means to the future of digital currency and why each day makes us excited to see what’s next.
I’ve always been practical and only respected institutions when it was earned. I could see that armies of bureaucrats, bankers and middle managers were just there to slow down commerce by raising costs and adding fees to transactions to pay for their existence. I always wondered why I had to pay for a bank account where the bank would use my money to lend and make more money off my money. I always wondered why FIAT currencies like the dollar were constantly being diluted by additional dollars being printed and added to the float; I mean wouldn’t this cause a loss of purchasing power or inflation?
When digital currencies like Bitcoin were born a light went on. The currencies seemed to be a solution, a fintech solution, to high fees and regulations cutting out several middlemen and redundant regulations. Digital currencies derived value from miners doing the work of verifying that a blockchain was accurate. The miners had to spend capital and labor to set up a mining equipment and buy electricity to operate which equals work! The digital currencies mined had value as work was performed to obtain them and the digital currencies had value because of their utility for payments, simple and speedy transferability and ability to by-pass the usual intermediaries, (The Banks) thus lowering transaction fees and delays around the globe. Best of all in the case of Bitcoin there is a finite amount that will ever be in existence with zero dilution, unlike the Dollar; preserving Bitcoins’ purchasing power.
Since the birth of digital currencies like Bitcoin, thousands of low cost platforms, wallets, exchanges and DeFi products have grown into a new financial industry without the participation of the money center banks which will mean lower fees, access to payments for the unbanked and more creative financial solutions for everyone with more control for the individual. And even if you really feel the need to hold onto Dollars or Euros Bitcoin can be converted to either quickly.
Which leads me to think about what’s next. How do financial institutions further leverage the opportunities of Crypto, Bitcoin, and other digital currencies? At Bluesky Digital Assets, we are taking an approach that focuses on the future of these exciting Bitcoin milestones and the technology that is closely aligned with it. For example, we are offering a complete ecosystem of value-creation by re-investing appropriate portions of digital currency mining profits back into operations. A percentage of the profits are then invested in the development of proprietary Artificial Intelligence (AI) based technology. This approach allows our company to scale and respond to changing conditions within the still emerging digital currency industry.
Another opportunity is the use of both ASIC and GPU custom built mining rigs. This combination gives Bluesky Digital Assets the ability to mine a broader set of virtual coin offerings with a diversification approach. ASIC’s are generally set-up to be focused on one particular digital asset type, with Bitcoin tending to be the most popular. The inevitable downside is that should a coin, and its algorithm alter, a normal ASIC mining rig would need to be reconfigured to mine for an alternative coin. Using GPU’s gives us increased ability to mine alterative virtual targets without having to reconfigure all of the operational assets with major downtime.
For those of us excited about Crypto/Blockchain/Digital Currencies or whatever the heck you want to call it, it’s not just the opportunities within the currencies itself, but we can do to maximize the opportunities and grow within other emerging industries.