Introduction
Anyone who has ever read a fairy tale 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 known to many cultures around the world. In the United States, an LLCs firm brings together the benefits of partnerships. Visit bitcoin-storm.live for more information. And, as with most ancient folktales, there is almost certainly a deeper meaning than is first apparent.
What is Bitcoin?
These electronic, autonomous tokens, sometimes known as “cryptocurrency”, are neither produced nor regulated by any nation’s central bank. Blockchain, often referred to as smart contracts, is what powers them. Blockchain is a ledger that records every transaction that is 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 be the future of money. It is 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 medical records, academic diplomas and other important documents on a decentralized network that would be nearly 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 known to many cultures around the world. And, as with most ancient folktales, there is almost certainly a deeper meaning than is first apparent. In this case, it is about ensuring that as many of your descendants as possible are equipped for the future. This is where the Bitcoin and ark story seems to converge and become almost the same. They seem to have relatively almost nothing in common 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 little further, the similarities that the two share gradually become clearer.
The importance of diversity
In the story of the ark, there were two important things that enabled the inhabitants to survive the flood. First, it was constructed so well that it remained completely waterproof. Second, 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 people on earth in it. We are simply too big and too greedy to do in a boat. But what if we built many more miniature sheets instead of making a single giant sheet? If each ark was designed to fit a specific species, but could also carry multiple animals as passengers, it would be much more realistic.
A word of warning
This is where things start to get interesting. If we consider Bitcoin as the ark and blockchain as the enabling technology, users can draw many more parallels. If we look at the structure of Bitcoin, the core software is open source, which means that anyone can access it and contribute to its development. Similarly, the ark is built from common materials with a wide range of uses. If we think about the animals on the ark, each one had a specific role. Similarly, each crypto has a special function in the decentralized ecosystem of the blockchain.
Last word
As with any investment, it is important to diversify your portfolio. That’s why the story of Noah’s Ark resonates strongly with crypto investors. It is not enough to pick 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 characteristics. Users should choose some based on their potential growth, others for their utility, and others for their ability to provide stability in times of volatility. We are not suggesting that crypto investors try to put thousands of animals on a boat, but hopefully the comparison helps illustrate the importance of diversifying your crypto portfolio.
