Don't invest in Bitcoin, cryptocurrencies or blockchains

This troubleware tip was written on 15 June 2018.

In 2008 a new piece of technology was invented: The blockchain. Simply put, a blockchain is an electronic ledger with no central owner. These ledgers are used to make digital currencies called cryptocurrencies. The first cryptocurrency created was Bitcoin. Unlike normal money, Bitcoin promises to be an unregulated currency. No banks, no taxes, no chargebacks, no government interference. Just the market.

In 2018 these technologies still aren't ready for practical use. To pick one major issue (of many): Blockchain transactions take from ten minutes to forever. Imagine waiting ten minutes or more for your Eftpos transaction to be approved. Imagine waiting for it to never be approved! There's talk about how to fix this, but even after ten years there's no solution. As a result nobody really uses Bitcoin outside trading it on exchanges.

There's hundreds of cryptocurrencies and promises of blockchains changing the world. People have made millions of dollars just by trading these currencies. But I urge you not to spend money on this, no matter how tempting it may seem. No promised changes have actually happened, all this investment is just speculation. Don't get caught up in the hype, and don't waste your money.

If you have any questions about this tip or suggestions for new ones, please contact me.

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