Is there a blockchain inventory

Blockchain: The disruption that the big guys are now also recognizing

The blockchain and much more the bitcoin on it have gained a lot of popularity in the past few months. What used to be only for gamers and nerds has now become a superstar in the investment scene. You can hardly buy a magazine at the kiosk without seeing a cover with a Bitcoin or a headline from the world of cryptocurrencies. Many do not yet know exactly what the blockchain is or how it works, but most have heard of it. In any case, institutional investors now have the technology on their radar too. These come out more and more often that they are now investing their money in Bitcoin or another crypto currency.

What is the Bitcoin / Blockchain?

Especially when you are new to the topic, it can sometimes be a little difficult to understand the crypto universe with all its elements. This is not exactly made easier by the terms, as they are mostly in English. However, if the three terms bitcoin, blockchain and cryptocurrencies are clearly separated and defined, the concept quickly becomes clear.

Probably the best-known term in the masses is Bitcoin. This has made a reputation for itself as the largest digital or crypto currency. After the invention by someone with the code name Satoshi Nakamoto, it was initially only for IT-savvy people and nerds who found the technology behind it exciting. When the price rose rapidly and then fell again, there were still speculators who believed that they could earn big money with it. A lot has happened since then, and in the past three years at the latest, Bitcoin has found more and more supporters in the masses.

Debtors Atlas 2020

The technology on which Bitcoin is based is the so-called blockchain. In German, it could be translated as a blockchain. It was created more as a by-product to Bitcoin, but today it has the potential to revolutionize a wide variety of industries. As the name suggests, the blockchain can be thought of as a chain with several links. One link lines up with the next and they are firmly connected to one another. Because one link contains the information from the previous one in encrypted form, it is certain that nothing can be changed afterwards. The blockchain is therefore a database with maximum transparency and security. There is also no longer any need for control bodies such as banks or authorities between contractual partners. Logistics chains such as the transport of pharmaceuticals can also be viewed at any time. It has huge potential for a wide variety of industries.

Invest in the blockchain

As in the early days of the Internet, however, you cannot simply invest directly in technology. Investors have to look for values ​​on the blockchain, which then increase in value if they want to benefit from the trend. One possibility is, for example, to buy Bitcoin directly, which is the cryptocurrency with the largest market capitalization. In addition, only Ethereum and DeFi are worth mentioning, although these are significantly smaller than Bitcoin.

The most obvious thing for beginners is therefore to deal with the Bitcoin, understand the model behind it and then buy a part of it when it makes sense. Now you can even buy Bitcoin easily via PayPal.

There are thousands of different currencies in the crypto universe, but there is quite a risk behind investing in these so-called altcoins. Especially if you are not familiar with the subject, it is more of a gambling than an investment. Properly introduced, however, the Bitcoin or another crypto currency can be a real booster for the performance of the portfolio. Double-digit price increases in a few days are not uncommon.

Institutional funds in Bitcoin

More and more institutional funds are flowing into the cryptocurrency business. For example, in 2020 Grayscale Investments announced that it would gradually increase its Bitcoin portfolio. Within a short period of time, around three billion US dollars had already been invested in the form of Bitcoin. Well-known investor Paul Tudor also bought Bitcoin to protect himself from inflation, according to his own statements. He sees the never-ending money printing by the central banks as a great risk to the value of our money and uses the Bitcoin as what used to be gold. The founder and CEO of Tudor Investment Corp. said in a market outlook, "The best strategy to maximize profits is to have the fastest horse ... I assume it will be Bitcoin." Even Deutsche Bank, which is considered a well-established company, has stated in a report that Bitcoin is too important to be ignored. With a $ 1 trillion market cap and further growth potential, analysts see it as big enough not to be overlooked.