Summary
Blockchain is not a cryptocurrency.
Prudent investors must know the difference between blockchain, bitcoin and other cryptocurrencies, and the investing implications of each.
The application of blockchain technology can go well beyond cryptocurrency – reaching global finance, healthcare, and more.
It’s hard to argue against the idea that investment opportunities surrounding cryptocurrency and blockchain technology have become mainstream conversation topics. Many cryptocurrencies including Bitcoin and Ripple have exploded over 1,000% in growth in just 2017 alone. But even as the potential impact this new technology has on the future of finance becomes exciting to everyday investors, getting a clear picture of the technology has remained difficult. The rise of any technical innovation comes with a suite of accompanying terminologies and jargon that can be difficult for investors to wrap their minds around.
Even in investment articles by financial journalists and advisors, words like ‘blockchain’ and ‘cryptocurrency’ are sometimes used interchangeably – and incorrectly. Given their vast difference, we wanted to bring clarity to the confusion to help investors make better, more informed choices regarding whether cryptocurrency or blockchain-related technology investments are a good fit your portfolio.
Foundational terms
Bitcoin
Launched in 2009, Bitcoin is credited for having kicked off the cryptocurrency craze, though that didn’t happen for many years. Bitcoin was created as a digital, decentralized currency, supported by technology that would ensure safety for its users by engaging its users directly – a role traditionally held by the banks. Bitcoin, in effect, eliminated the role of the trusted third-party -by assigning that role to anybody who wanted to participate around the world. Bitcoin is built on top of blockchain technology, resulting in transactions tracked and recorded on a communally maintained-but unchangeable database.
Read more at:
https://seekingalpha.com/article/4151046-difference-blockchain-bitcoin-cryptocurrency
