By Chris Sedgwick, director of security operations at Talion
Cryptocurrencies are a topic that touches many areas; not only finance and investing but technology and even political arenas. Although apolitical in itself, it is the structure behind these cryptocurrencies that make them a much talked about subject amongst political purists from across the political spectrum. This structure can be boiled down to the following; think of cryptocurrencies as a ‘big spreadsheet’, and when you ‘mine’ crypto you essentially fill in the spreadsheet, keeping the ledger up to date on who is transferring currency to another party.
It is perhaps this decentralised nature which has contributed to the meteoric rise of cryptocurrency value. Modern investors see the value in having an immutable ledger, meaning that external users or third-parties cannot tamper with previous transactions. This becomes more crucial when you consider the impact that quantitative easing has had on the economy over the past several decades. Cryptocurrencies, compared to their physical counterparts, are practically immune from quantitative easing as there is a predetermined number of coins in circulation at one time meaning that they are impervious to inflation. This has contributed to more individuals over the years turning to cryptocurrencies as a ‘safe-haven asset’ in the same way that investors would traditionally turn to gold. In my eyes, I see Bitcoin as better at being Gold than Gold itself, because of its ability to be infinitely divisible into micro units and decimal points of a Bitcoin rather than a single gold ..
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