Bitcoin and the mobile phone network explained. They will trend in the same way overtime. We look at the reasons and how it can help your investment decisions
Comparing phones to crypto currency
I have written before about disruptive technology when new ideas change the way we perform our everyday tasks.
These technologies are coming hard and fast and we mostly don’t notice the impact they are having on us.
Amazon, Google, Facebook are examples that most of us ignored. Indeed at our peril.
Block Chain is the catalyst for total disruption in nearly every transactional industry in the world. Banking, Real Estate and insurance are examples.
However let’s go back in time to the beginning of Mobile phones networks.
Why would you ever invest in this market
Adoption of Mobile networks was not over night
The 2G network was the beginning of adoption of the Nokia monopoly and a growth in the market. However it still lacked Global appeal and availability. 1992
Then along came 3G with smart phone abilities and small moves and sales were ramping up but it was not world beating.2002
Then 4G gave us everything we could ever want and sales went through the roof. In fact so much so that there are now more mobile phones in the market than people, at the last count over 9 billion devises registered through carriers. 2009
There is 17 years of consistent growth that had to overcome many limitations.
5G will now reinvent the wheel with much higher data acceptance, faster speeds and capacity. However this is still in its infancy after a launch in 2016.
The important points here are that global adoption is necessary and a constant technology upgrade is required to reinforce value and gather repeat sales.
When we think Mobile we really only consider devises and what they can do.
Nokia was king for many years and then taken over by Motorola before the iPhone stole the crown and has been on the throne since then. This is despite Samsung screaming for abdication.
Therefore the networks were the most important application but all we cared about was Handsets.
Cutting over to the Block Chain as an application
The Block Chain is similar to a mobile network as it is there to carry other devises that give us real advantages in transacting data,
Many have tried to build a new and better Chain however the world is littered with corpses that have failed to get even close to the secure functionality that it provides.
Most of the world has adopted Blockchain as a reality and it only needs China to understand that competing with this technology is useless.
Governments are bending , countries are adopting and the Nay Sayers are fast coming over.
What are the block Chain devises
The first is Bitcoin that is set up as a store of value and a spending media that has no international boundaries and recognises all Fiat currencies in transactions. Furthermore it provides an inflationary hedge on your savings regime. This is unlike banks, for instance, where the interest rates are so low that deflation eats away at your savings.
It may not be understood that Bitcoin is not static, In fact constant upgrades are being made to keep pace with the advancements needed. just this month Nov-21 a major upgrade called Taproot was undertaken and it introduced smart contracts to the chain.
Next come about 9000 so called Alt-coins that provide different services of some kind.
Just like the Mobile network there are good applications and some not so good
Etherium currently sits at Number two.
Ethereum is a decentralized, open-source blockchain with smart contract functionality.
The term decentralised (DeFi) is the important difference in application. Traditionally Banks and similar are all centralised and hold all your data in one place.
Others do similar operations and they include Solana and Cardano as leading contenders.
The Block Chain has allowed other applications to be used in different ways
Non Fungible tokens
Non-fungible” more or less means that it’s unique and can’t be replaced with something else. They have used these in the arts where the original artist gets a share of every subsequent sale of the piece.
Not just art but all sorts of objects down to player cards.
- Tickets
- Art
- Collectables
- Domain Names
- writings
Not all Altcoins are good coins
There are many that will eventually disappear with all the invested funds. Names Like Dodgecoin and Shibu Inu are speculative trading ventures. Great to play with however caution should always be applied.
The market is not a straight line in the short term and will always be subject to volatility along the way. If it was a straight line it would be near the moon by now.
My Comparison explained
The Mobile phone technology continues to adapt and grow . From the early eighties to the start of 5G is a long time and many changes yet it has become common place.
It is not a price driven market any longer it is more by phone features that drives the market. Gee the new iPhone is over $2000 and on a wait list.
Bitcoin and Alt-Coins are evolving with one big difference. You can invest in them and not a Mobile phone network.
Consider this,
9 Billion mobile phones in existence after 45 years and still growing.
1.4 million investors in Bitcoin after just 12 years and growing.
Conclusion
None of this is investment advise however I am laying out a roadmap going forward based on what has happened in the past.
This will make the changes to our society that will effect the lives of every person than transacts a document at some time.
Bitcoin is not going away, it is here to go the distance into the next decades and offers a spectacular opportunity for those that see the future.
It is still a rocky road however large investors will iron out some of the bumps and hopefully flatten the curve a little bit.
Enjoy the Journey
Disclaimer. The author has a small investment in Bitcoin, Etherium and other altcoins.
Never invest more than you can afford to loose.
Further reading; Being scared of the Bitcoin generation