Cryptocurrency is Booming in Public Awareness
Chances are you know someone who has been harking about how cryptocurrencies are the future of currency. You’ve seen the high cost of bitcoin and second-guessed a lot of your early life investments just like the rest of us.
But this isn’t an article attempting to convince you of thing you should already know; this article is to show you how the popularity of cryptocurrencies will change the landscape of Internet Marketing.
How Do Cryptocurrencies Work?
The best way to explain cryptocurrencies is to explain standard currencies and how crypto inverts the concept.
Foundation of Value
Less than one hundred years ago, we were doing things by the ‘gold standard.’ This means that the amount of printed money a nation had was represented by the amount of Gold they had acquired.
Next came Fiat currency. Nations had as much money as they said they had because the nation had other means of establishing their worth. The prevalence of the Internet, celebrity, valid markets and better economies are some of the reasons why America has such a strong economy while not having a standard national value as is typically represented through trade routes and high-valued goods.
Cryptocurrencies foundation of value comes from Mining, transactions, and a public ledger. Cryptocurrencies such as Bitcoin work by having a ceiling of worth (somewhere in the area of 21,000,000 for Bitcoin.)
Then Bitcoin acting through an automated, public ledger, will allow transactions of bitcoins to happen every 10 minutes until 2016 ‘blocks’ have been mined. This is an important concept known as block chaining.
When blocks are linked together, it strengthens the value of the public ledger, and the overall value of the cryptocurrency goes up as the system validates itself.
Blocks can be mined, or they can be traded since Bitcoin is such as hotly traded item, it is more common for blocks to be traded than mine, which counts as part of the public ledger.
Methods of Acquisition
In the early days, you were paid in a currency for doing a job or through acquiescing it through trade. If you value something at a set currency, you would either acquire it through trading or outright payment.
For cryptocurrencies, the most popular option is through trade and the public ledger. You cannot freely exchange cryptocurrencies unless you do it through the public ledger, so even if you were paying someone for their work, they would not receive it unless it went through the block chaining channels.
This makes the exchange of currency much closer to stock exchanges than typical trade and with added security since most of these coins will be individually traceable.
Practicality of Scale
The gold standard had it where you could only have as much money as was assessed on a national level in correspondence with the amount of gold the nation had. That is clear; you have 1 billion in gold, you can exchange 1 billion in your paper money.
When Fiat currency came, it became harder to assess the value of a dollar. If you add too much, the value goes down, add too little and the value goes up, but it’s harder to circulate. Currently, there are four trillion dollars in circulation after 2008 and the housing market crash.
Cryptocurrencies have a ceiling for whole ‘coins.’ For bitcoins there are only 21 million bitcoins in circulation. However, it is common and scaled by selling bitcents. When bitcoin becomes larger and is more common for many people right now, you won’t buy whole bitcoins, they’re in between 13,000 and 18,000 at any given moment.
But buying bitcents allows you to invest without investing too much.
What does all this have to do with Internet Marketing?
There are two clear ways that cryptocurrencies and internet marketing are intertwining. The first way is purely educational and informational. The second can potentially change the way Internet Marketing is conducted on a day-to-day basis.
Informational & Educational
The Public Ledger & Page Authority
The Public Ledger works as a way of validating and increasing the value of the crypto. This is eerily similar to the way that Page Authority validates a website through SEO. The concept that logging IPs, tracking user time, and click-through rates on a page are stunning similarities between the two.
Similar to how cryptocurrencies work, internet marketing would not work without an online marketplace.
How it will Change the Internet Market
Packet Switching. Block Chaining.
Packet switching and block chaining are the real reason why these systems exist, and it’s also the only part that isn’t completely integrated with a lot of Internet Marketers back pockets yet.
Packet Switching is the process of computers exchanging data autonomously. It’s how the public ledger works so well and is validated by not having to deal with human error.
Block chaining is the literal information being traded between two parties. This structure will stick around forever and is part of the threads that weave the fabric of cryptocurrencies.
How will these be integrated into Internet Marketing?
Block Chaining is going to be a necessity for backlinking and cross-linking between sites. You can already see rudimentary elements of it through websites like Gawkers Media network and Vice’s network as well.
But Block chaining will be incredibly important for keeping customers and clients within the webs that you create and eventually you can program them to be autonomous.
Packet Switching is already incredibly important for the future of A.I. content and SEO. Recently an Israeli company successfully transferred cargo from China to Canada solely from Packet Switching and Automation.
The technology is here to make it so bots will find all the necessary information themselves for streamlined communication. It’s merely up to us to fashion the tools into something that will further Internet Marketing.