In today’s video, I’m with Kevin Chen, the head of the cloud tech group and we’re going to dig deeper into the most commonly asked questions people are asking in regards to blockchain in a bid to help someone new to the space understand it a lot more.

What Is Your Prediction For The Price of Bitcoin?

Kevin is often asked his preduction for the price of Bitcoin. The first piece of advice he gives is if the person asking is simply trying to make quick money, his answer is not for you. This is not financial advice and merely an opinion. Kevin also stresses the need for diversity across a number of different investment platforms including property and shares.

Kevin’s prediction for Bitcoin, based roughly on a four year cycle, is approximately $200,000 in 2025, a drop to potentially $50,000 in 2026 and longer term $1,000,000. Watch the video for his full analysis.

Does Bitcoin have any value based on the Austrian School of Economics?

In classical economics, the price of Bitcoin is based on supply and demand. Where supply is low and demand is high, the higher the price.

The Austrian School of Economics believe all prices and values come from consensus. The more people that believe in the value of something the higher the price and more reliable the currency.

So for example, if you visit a 7-Eleven in the United States and attempt to buy a piece of gum with Australian dollars, they will not sell it to you because they don’t recognize the currency. The value of the Australian dollar is limited to a consensus of the population of Australia of 50,000,000.

Over 100,000,000 people already own Bitcoin which is a larger consensus. Using consensus theory, the value of bitcoin should be more than the value of the Australian dollar.

Are blockchain transactions safe for business?

Broadly, Kevin sees cryptocurrency transactions safe for business but they are not currently trusted because most business operators have limited understanding of blockchain.

For example. There is currently inefficiency in the supply chain. Let’s say you’re a retail store that sells computers. You buy from the wholesaler who buys from the manufacturer who buys parts from parts suppliers. Each company in the supply chain has to outlay money in advance for inventory, which sits there until it is used.

Compare this to a smart contract written on an open ledger blockchain that the parts suppliers, manufacturer, wholesaler and retailer were part of. The retailer can pay the money upfront which is then distributed as each member of the supply chain completes their part, which is transparent and verified in real time.

There is less wastage and inefficiency as computers are only made when requested and paid by the retailer.

This open ledger can also give you confidence in the companies that are part of the supply chain. If a company has a history of not delivering, it will be more obvious and you are not relying on accounts to decide if you should do business with a company.

What is the function of cryptocurrency in a blockchain network?

Satoshi, the brains behind bitcoin was a big believer in decentralization being the best way to protect data. When companies currently want to protect data, they normally store a backup in a remote location.

However, Satoshi saw it safer for data to be stored in individual computers all over the world. However, for this to happen, computer owners needed to be compensated for their costs in running the computer and rewarded for performing the service. The rewards are paid in a cryptocurrency token relevant to the blockchain network they are verifying.

The people who own the computers storing the data are called miners.

We’d also love to invite you to watch all episodes of Web3TV where we share inspiring stories of all things web 3.0 at www.web3tv.com.au/watch

Connect with us on our Social Media Pages below:

In today’s video, I’m with Kevin Chen, the head of the cloud tech group and we’re going to dig deeper into the most commonly asked questions people are asking in regards to blockchain in a bid to help someone new to the space understand it a lot more.

What Is Your Prediction For The Price of Bitcoin?

Kevin is often asked his preduction for the price of Bitcoin. The first piece of advice he gives is if the person asking is simply trying to make quick money, his answer is not for you. This is not financial advice and merely an opinion. Kevin also stresses the need for diversity across a number of different investment platforms including property and shares.

Kevin’s prediction for Bitcoin, based roughly on a four year cycle, is approximately $200,000 in 2025, a drop to potentially $50,000 in 2026 and longer term $1,000,000. Watch the video for his full analysis.

Does Bitcoin have any value based on the Austrian School of Economics?

In classical economics, the price of Bitcoin is based on supply and demand. Where supply is low and demand is high, the higher the price.

The Austrian School of Economics believe all prices and values come from consensus. The more people that believe in the value of something the higher the price and more reliable the currency.

So for example, if you visit a 7-Eleven in the United States and attempt to buy a piece of gum with Australian dollars, they will not sell it to you because they don’t recognize the currency. The value of the Australian dollar is limited to a consensus of the population of Australia of 50,000,000.

Over 100,000,000 people already own Bitcoin which is a larger consensus. Using consensus theory, the value of bitcoin should be more than the value of the Australian dollar.

Are blockchain transactions safe for business?

Broadly, Kevin sees cryptocurrency transactions safe for business but they are not currently trusted because most business operators have limited understanding of blockchain.

For example. There is currently inefficiency in the supply chain. Let’s say you’re a retail store that sells computers. You buy from the wholesaler who buys from the manufacturer who buys parts from parts suppliers. Each company in the supply chain has to outlay money in advance for inventory, which sits there until it is used.

Compare this to a smart contract written on an open ledger blockchain that the parts suppliers, manufacturer, wholesaler and retailer were part of. The retailer can pay the money upfront which is then distributed as each member of the supply chain completes their part, which is transparent and verified in real time.

There is less wastage and inefficiency as computers are only made when requested and paid by the retailer.

This open ledger can also give you confidence in the companies that are part of the supply chain. If a company has a history of not delivering, it will be more obvious and you are not relying on accounts to decide if you should do business with a company.

What is the function of cryptocurrency in a blockchain network?

Satoshi, the brains behind bitcoin was a big believer in decentralization being the best way to protect data. When companies currently want to protect data, they normally store a backup in a remote location.

However, Satoshi saw it safer for data to be stored in individual computers all over the world. However, for this to happen, computer owners needed to be compensated for their costs in running the computer and rewarded for performing the service. The rewards are paid in a cryptocurrency token relevant to the blockchain network they are verifying.

The people who own the computers storing the data are called miners.

We’d also love to invite you to watch all episodes of Web3TV where we share inspiring stories of all things web 3.0 at www.web3tv.com.au/watch

Connect with us on our Social Media Pages below: