Why Mark Carney is into crypto technology
You don’t need me to tell you something big is happening in cryptocurrencies right now.
The market is going ballistic. In the last year, the market cap (that is, the total dollar value) of all cryptocurrencies combined has grown by about 10x.
A couple of big winners like ethereum and ripple have grabbed the headlines. But there are hundreds of tiny cryptos which are making crazy sums of money for early investors. These are the “penny cryptos”.
Look, an opportunity this big doesn’t come by every year… or even every decade. This situation is exceptional.
That’s why we’ve put together a special investment presentation for you. It explains the opportunity in detail… and it shows how you could make a truly life-changing amount of money by investing in cryptos.
Click here to learn about the £20 crypto investment jackpot.
Before Babylon, Beyond Bitcoin
There are plenty of investment writers who’ll tell you the latest news from the crypto markets. There’s lots to report. ICOs, ten-baggers, hacks, overnight success stories.
And there are plenty of technology writers who’ll tell you in detail about how cryptos work. Again, there’s lots to talk about here. Cryptos are a complicated thing. And each of them is slightly different.
I’ll leave all that to those guys. I want to talk about the practical applications of cryptos today. The things which give them value.
I’ve been reading a new book called “Before Babylon, Beyond Bitcoin” by David Birch. It’s a big deep book about the future of money. The big idea is that money is a technology like any other, and like any other technology it’s going to change. The book explores how money is going to change in the future.
Bad luck, CHAPS
There’s a story in the book. A couple of years ago, the Bank of England’s settlement system “had a bit of a hiccough” and went down. It was bad.
“The situation was so serious that Mark Carney, the governor of the Bank of England, launch an independent review into what was the worst disruption of Britain’s banking payment system in seven years (the breakdown meant that the CHAPS payment system was down for more than nine hours; the bank was forced to start processing the most important payments manually).”
Why did CHAPS go down? Well, it’s not a particularly bad system. But the thing is, like almost every other payment system in the world, it’s run on a centralised database.
Centralised databases are fine when they work, but they have a central point of failure. If there’s a problem at the centre, the entire system goes down.
And that, dear reader, is why the Bank of England is thinking about using cryptocurrency technology in-house.
You see, cryptos all basically have one thing in common – they’re decentralised. They use blockchains or other similar technology to keep records across a network of different computers, without that single point of failure.
Just like it’s almost impossible to shut down the internet, which is decentralised, it’s almost impossible to shut down or control a decentralised ledger. That’s the beauty of them. They’re robust. They can’t be grabbed by the powerful. And as the Bank of England has noticed, they don’t have a single point of failure.
The Bank could in theory create a blockchain-based payments system which is less vulnerable to outages like that of a couple of years ago; is completely trusted by all participants; and which automatically and permanently processes transactions in accordance to pre-agreed rules.
This is the sort of stuff which fundamentally drives the value of cryptocurrencies. The idea is that blockchain and crypto technology will make better, more robust systems than the ones we use today.
The market has realised that this is a big idea; and now money is piling into cryptos which make use of decentralised blockchain technology.
So if you want to know which cryptos our in-house expert is getting behind…