Intro: It took another Greenfield in Sydney to finally focus my mind on another brand new idea which I believe will become the most important new technological leap forward since the birth of the Internet. The other Greenfield is, of course, my son Max who during this winter in Sydney has been diving deep into the world of blockchain and crypto currency while its is too cold to swim on Bondi beach!
So what is Block Chain technology and why have crypto currencies just crashed?
It was in 2008 as the disaster of the credit crunch was rolling out across the world that a new idea called Bitcoin was invented using a new encryption technique on the Internet. At that time we thought it was just another way to win tokens on a computer game in one of the virtual worlds... it was only taken seriously by the gaming community and we all just hoped that our children wouldn't borrow our credit cards and buy up virtual tokens online as they played on their playstations all night! Well that was the start of something that this weekend, nearly 10 years later, has just about become mainstream news.
Its become mainstream because the Chinese Government has banned the issuing of tokens. Yes tokens, tokens that new online technology businesses are issuing to raise money to fund the creation of new decentralised applications in the hope that their innovation will have a value that they can pay you back in and then you can exchange for other cryptocurrency or fiat currency. (If that is difficult to understand, I will explain).
The main point is this, earlier this year the US Government stated that any ICO (initial coin offerings e.g tokens and new cryptocurrencies) will be included in new exchange and financial tax rules managed by the IRS, this didn't seem to have much effect on the market and in a way legitimised this new technology.