In the first article in the series, I explained the basic technical and economic principles behind Bitcoin. With an insight that looks beyond the headlines, we can develop a better understanding of how adoption of Bitcoin can solve real world problems.
Bitcoin adoption is growing. While buying a pizza with it was a novelty in 2009, today Bitcoin is widely used across the globe.
Bitcoin adoption offers insurers new opportunities. Gaining knowledge and experience now will help insurance professionals prepare for the future.
Metcalfe’s law states that the value of a network is proportional to the square of the number of participants in a network. Originally, this law was developed in relation to telecommunications, but as the internet became increasingly mainstream, the application to computer networks became obvious. As Bitcoin continues to evolve and more users join the network, its value is likely to increase. Many individuals view it as a safe haven from inflation, even liberating citizens of war-torn countries from total economic disaster.
Bitcoin adoption is still in its infancy. Gaining knowledge and experience now is a wise investment for any insurance professional looking toward the future. As our industry continues to innovate while maintaining the foundational principles that led to past success, technology like Bitcoin will play a crucial role in facilitating the insurance industry of tomorrow.