073: What the heck is bitcoin?

"Can you explain what internet is?" That's the question Katie Couric asked her colleagues on the Today Show in 1994 as an equally confused Bryant Gumbel looked on. Now don't you wish you knew what the internet was back then? Don't you wish you had enough foresight to see this seismic shift in not only technology but in our world? If you knew what you know now, what would you have done? Of course the easy answer is "buy google or buy amazon!" But that's not what I mean. If you knew what you know now, my guess is that you would learn everything you could about this new technology and how you could get a piece of the action. That is where we are with blockchain technology. "Block-what?" you ask in your best Bryant Gumbel voice. Exactly. Few people understand blockchain but I AM CONVINCED that blockchain technology will become as ubiquitous as the "app". Most people are familiar with blockchain mostly by a currency built on that platform called bitcoin. However, currency is just the tip of the iceberg with blockchain. Blockchain technology will fundamentally change the way we do business, make transactions, and interface with the world. And with regard to currency, it can't be stopped. Why? Because cryptocurrency lies at the confluence of a very unique place that brings libertarians clamoring for privacy, computer geeks, and anti-Wall Street/anti-central bank people all in one place. That is powerful. Now listen, I know some of you out there are saying, "Buck, I can't see it, touch it, or feel it so why should I care? After all, I should be focussing on tangible assets, right." You're right, but I'm not talking about investing in it. I'm asking you to recognize it for what is--the future. Furthermore, cryptocurrencies are no less real than the American Dollar. In fact, bitcoins are limited in number, transacted directly from one person to another, and have a decentralized ledger that makes it virtually impossible to hack. On the other hand, the US dollar can (and is) printed at will, often requires a third party to facilitate transactions and can easily be hacked or counterfeited. In fact, I will go as far as to say that cryptocurrency shares more features with gold than it does the US dollar. Now I can't explain this all to you. First of all, I am no bitcoin or blockchain expert. However, I do know enough at this point to be absolutely convinced that blockchain technology and some kind of cryptocurrency will be commonplace in our daily lives a decade from now—probably even sooner. With that in mind, this week's Wealth Formula Podcast will try to help you get up to speed on this stuff. In fact, I guarantee that by the end of the podcast you will know more than 99 percent of people out there about this brave new world of blockchain. Of course I'm not qualified to teach on this topic. That's why I got one of the world's pioneers in blockchain technology, Reeve Collins, to do it for me. Don't miss this episode!