Cryptocurrencies. Depending upon who you ask, they’re either the next big thing to take e-commerce by storm, or they’re just an overhyped fad that will crash much sooner than enthusiasts want to admit. Regardless of your feelings on the matter, learning about this new technology can be interesting, especially when you see how many different cryptocurrencies are currently available for purchase and the sheer volume of new currencies that are currently in development. Bitcoin is only the most famous example of cryptocurrency—it’s definitely not the only player in this market!
In today’s video, we’ll give a brief overview of cryptocurrencies; namely, how they “work” in regards to blockchain technology and enforced scarcity. The individual units of a cryptocurrency (be they Bitcoins, Litecoins, or Dogecoins, or something else entirely) don’t have any inherent value on their own—but can’t the same be said for the paper money and digital transactions that rule most consumers’ lives these days?
Facebook has recently been in talks to launch its own brand of cryptocurrency. Odds are, it will first be designed as an acceptable method of payment for making purchases on Facebook before it’s refined for off-site use—or even gains enough value to be traded for other forms of currency. On one hand, Facebook’s new system won’t carry the same weight as more established systems like Bitcoin. On the other hand, though, Facebook is a household name and a publicly traded company. Its reputation could propel its popularity with surprising speed.
We’re not saying that you should definitely rush out to buy up Facebook coins the moment they become available. We’re not saying that you should definitely ignore the company’s attempts to hop on the cryptocurrency bandwagon, either. Instead, we’re suggesting you keep an eye on this trend and join us in seeing where it goes!