Everyone who has ever read a fairytale knows that putting all your eggs in one basket can be a dangerous strategy. But what if you could put all your eggs in 100 different baskets and then trust that they would all hatch? The story of the ark and its inhabitants surviving a great flood is familiar to many cultures worldwide. Within the US, an LLCs firm brings together the benefits of partnerships. Visit bitcoin-storm.live for additional information. And, as with most old folk tales, there is almost certainly a deeper meaning than is first apparent.
What is Bitcoin?
These electronic, autonomous tokens, sometimes known as “crypto assets,” are neither produced nor regulated by any nation’s central bank. Blockchain, commonly referred to as smart contracts, is what powers them. Blockchain is a ledger that records every transaction made and is distributed to every computer in a decentralized network.
Why is Bitcoin important?
As mentioned, Bitcoin is the world’s first decentralized digital currency, which many believe will become the future of money. It’s important because it is the first application of blockchain technology and has paved the way for other cryptocurrencies. Beyond finance, Bitcoin can also be used as an encrypted and decentralized data storage solution. Imagine a world where people could store their medical records, academic diplomas, and other essential documents on a decentralized network that would be almost impossible to hack. All data stored on a blockchain is encrypted, and users can only access files with a private key.
Noah’s Ark and Bitcoin: A Match Made in Heaven
The story of the ark and its inhabitants surviving a great flood is familiar to many cultures worldwide. And, as with most old folk tales, there is almost certainly a deeper meaning than is first apparent. In this case, it’s about ensuring as many of your descendants as possible are equipped for the future. It is where Bitcoin and the ark story seem to converge and become almost the same. They look to possess relatively almost nothing in connection at first glance. One is a story from the Bible (albeit with slightly different versions in different cultures), while the other is a digital currency that has yet to be widely adopted. But if you go a bit farther, the similarities that the two share gradually become more apparent.
The Importance of Diversity
In the story of the ark, two key things allowed its inhabitants to survive the flood. Firstly, it was constructed so well that it remained completely watertight. Secondly, it was built with a wide variety of animals on board. If you were to build an ark today based on the dimensions of the one described in the Bible, there is no way you could fit all the humans on Earth inside it. We’re just too big and too greedy to do into one boat. But what if we built lots of more miniature arks instead of making a single giant ark? If each ark were designed to fit a particular species, but could also carry additional animals as passengers, then that would be much more realistic.
A Word of Warning
It is where things start to get interesting. If we consider Bitcoin as the ark and blockchain as the technology that makes it possible, users can draw many more parallels. If we look at the structure of Bitcoin, its core software is open source, meaning anyone can access it and contribute to its development. In the same way, the ark is built from common materials with a wide variety of applications. If we think about the animals on the ark, each one had a specific role. In the same way, each crypto has a particular function in the decentralized ecosystem of blockchain.
As with any investment, it’s essential to diversify your portfolio. That’s why the Noah’s Ark story resonates strongly with crypto investors. It’s not enough to choose one or two “blue chip” tokens and hope they survive the inevitable crypto winter. Instead, investors should choose a selection of tickets based on their different attributes. Users should select some based on their potential growth, others for their utility, and others for their ability to provide stability in times of volatility. We’re not suggesting that crypto investors try to fit thousands of animals onto a boat, but hopefully, the comparison helps illustrate the importance of diversifying your crypto portfolio.