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<strong>April</strong> 20<strong>21</strong><br />

THE VALLEY BUSINESS JOURNAL<br />

www.TheValleyBusinessJournal.com<br />

19<br />

Technology Trends: CryptoCurrency<br />

CONTINUED FROM PAGE 1<br />

Many of you reading this are probably<br />

asking yourselves a similar question:<br />

what is Bitcoin?<br />

Bitcoin is what is known as cryptocurrency.<br />

The concept is a relatively<br />

simple one, but the practical implementation<br />

is anything but. Essentially, the idea<br />

behind cryptocurrency is that it provides<br />

an anonymous method of payment for<br />

digital transactions.<br />

Computers generate Bitcoin by solving<br />

complex mathematical equations, a<br />

process called mining, by performing<br />

billions of these calculations. In the early<br />

days of Bitcoin, it was relatively simple<br />

to mine, but as more and more people<br />

started mining, and usage expanded, it<br />

takes longer and longer to mine.<br />

The algorithmic calculations used<br />

to generate Bitcoins become increasing<br />

complex as more Bitcoins are mined.<br />

Bitcoins are stored in a wallet—a 26-35<br />

character token that contains the value<br />

of your Bitcoins. The wallet is protected<br />

by a password generated by the owner.<br />

Utilizing the wallet and the password, the<br />

bitcoin value is accessible. Transactions<br />

can occur anonymously because transactions<br />

don’t revolve around accounts or<br />

systems that tie you to a particular wallet.<br />

The value of the bitcoin isn’t stored at<br />

any particular institution such as a bank.<br />

The anonymity built into Bitcoin was<br />

the chief aspect of the cryptocurrency.<br />

This has many regulators and members<br />

of law enforcement worried. By allowing<br />

online transactions to be entirely<br />

anonymous, this line of reasoning holds,<br />

facilitates illegal activity. Although this<br />

may be an unpreventable consequence<br />

of Bitcoin, its proponents argue that this<br />

is merely a byproduct of cryptocurrency,<br />

much the same way that physical currency<br />

can be used for illegal activity.<br />

Recently however, new concerns<br />

have risen concerning cryptocurrency,<br />

and Bitcoin specifically- runaway speculation.<br />

The value of Bitcoin has risen tremendously<br />

in its short history. In July of<br />

2010, one Bitcoin was worth approximately<br />

$0.08. On December 15th, 2017,<br />

one Bitcoin was worth $17,500. As of<br />

this article’s writing, the value is over<br />

$56,000, however it has swung tens<br />

of thousands of dollars in as little as a<br />

month. This seemingly runaway speculation<br />

has many of the hallmarks of the<br />

DotCom Bubble of the 1990s.<br />

If you are interested in learning<br />

more about Bitcoin or cryptocurrency<br />

in general, the potential for investment,<br />

and what can be purchased with cryptocurrency—it<br />

is exceedingly important to<br />

be informed.<br />

Bitcoin and other cryptocurrency<br />

is still in its infancy; the savvy business<br />

owner would do well to make an<br />

informed, and cautious decision about<br />

whether to begin investing in or accepting<br />

Bitcoin.<br />

Mythos Technology is an IT consulting<br />

and management firm that provides Managed<br />

Services including hosted cloud<br />

solutions. For more information, please<br />

visit www.mythostech.com or call (951)<br />

813-2672.<br />

TECHNOLOGY<br />

by<br />

by<br />

James<br />

Steve<br />

Laszko<br />

Fillingim<br />

MYTHOSTECH.COM<br />

“<br />

Many of you reading this are probably asking<br />

yourselves a similar question:<br />

what is Bitcoin?<br />

Bitcoin is what is known as cryptocurrency.<br />

The concept is a relatively simple one,<br />

but the practical implementation is<br />

anything but.

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