xuanling11Crypto Paycheck
Photo by Mario Gogh on UnsplashEmployees will receive their paycheck in the period as a reward for their work. However, the employer wants to pay less to employees so that they can have maximum profits. The tension between working and anti-working has increased ever since. TL;DR Nobody wants to work unless they can pay fairly. Fiat payment may not be sustainable to satisfy what workers can contribute if the employer continues paying less and gaining more from profits. Employees will want thei...
xuanling11Defi Review #4: AAVE The Defi Lending Services
AAVE is a decentralized finance lending service before decentralized finance even existed. It is an innovation lending service in crypto and one of the first kind. However, the lending service may only restrict to the crypto community and it may expand into the traditional financial field later. TL;DR AAVE is a crypto lending financial service which to provides lending services to the crypto community. They focus on security and smart contract lending may be the future of financial services. ...
xuanling11Stablecoin Crisis
Stablecoin is in the crisis mode. The most reputable stablecoin USDC is depegged. It is all triggered by the traditional bank collapse - Silicon Valley Bank or SVB collapse. Why traditional bank collapse impacts crypto stablecoin? Let's sort this out and reveal how stablecoin operates. First, why SVB collapse? The short answer is overleveraged. SVB is one of the 20 largest commercial banking in the United States. Some even estimate the bank owned half of startup assets. Bank operated in ...
xuanling11Crypto Paycheck
Photo by Mario Gogh on UnsplashEmployees will receive their paycheck in the period as a reward for their work. However, the employer wants to pay less to employees so that they can have maximum profits. The tension between working and anti-working has increased ever since. TL;DR Nobody wants to work unless they can pay fairly. Fiat payment may not be sustainable to satisfy what workers can contribute if the employer continues paying less and gaining more from profits. Employees will want thei...
xuanling11Defi Review #4: AAVE The Defi Lending Services
AAVE is a decentralized finance lending service before decentralized finance even existed. It is an innovation lending service in crypto and one of the first kind. However, the lending service may only restrict to the crypto community and it may expand into the traditional financial field later. TL;DR AAVE is a crypto lending financial service which to provides lending services to the crypto community. They focus on security and smart contract lending may be the future of financial services. ...
xuanling11Stablecoin Crisis
Stablecoin is in the crisis mode. The most reputable stablecoin USDC is depegged. It is all triggered by the traditional bank collapse - Silicon Valley Bank or SVB collapse. Why traditional bank collapse impacts crypto stablecoin? Let's sort this out and reveal how stablecoin operates. First, why SVB collapse? The short answer is overleveraged. SVB is one of the 20 largest commercial banking in the United States. Some even estimate the bank owned half of startup assets. Bank operated in ...
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Cryptocurrencies were notorious of their volatility. However, the traditional market has been more volatile than the crypto market.
What has happened?
https://twitter.com/Crypto_Academy\_/status/1583413490970083330
The volatility depends on how certain the future will become. If the future is uncertain, then it is riskier with higher volatility compared with more certainty of lower volatility.
From the asset classes' point of view, the volatility links to the debts ratio since the higher the debts of the asset classes, the market tends to fluctuate more than it used to.
Also, it depends on the central banks to increase its interest rates, making debts more unprofitable and harder for borrowers to pay off. It makes it harder for whoever borrowed money to make profits than with a lower interest rate environment.
But if you switch your point of view from the focus on debts to credit, you will have a different perspective on how the economy operates.
Debts are eating up money, and credits are providing money.
When the speed of eating up money is faster than providing money, we are at trouble. This problem is called a liquidity issue.
The economy is about trading and money flowing through each trade. If there is no money, the trade will not be complete. When the trade stops, people will not get paid and afford anything they want to.
The central bank is to prevent liquidity dry up and impact trading.
Of course, they will not directly impact the trade but indirectly manipulate interest rates, influencing the money flow from debts to credits or vice versa.
Why crypto market is stable?
Crypto market does not depend on debts yet!
Its risk solely depends on crypto exchange. The model is more simple and fragile on the modern view of finance as people can easily panic sell to bring down the market.
The crypto market is stable because more institutional investors are staking more than used to.
So crypto adoption is coming slowly but steady.
Support the writer here or join Medium here
Photo by Filip Mishevski on Unsplash
Cryptocurrencies were notorious of their volatility. However, the traditional market has been more volatile than the crypto market.
What has happened?
https://twitter.com/Crypto_Academy\_/status/1583413490970083330
The volatility depends on how certain the future will become. If the future is uncertain, then it is riskier with higher volatility compared with more certainty of lower volatility.
From the asset classes' point of view, the volatility links to the debts ratio since the higher the debts of the asset classes, the market tends to fluctuate more than it used to.
Also, it depends on the central banks to increase its interest rates, making debts more unprofitable and harder for borrowers to pay off. It makes it harder for whoever borrowed money to make profits than with a lower interest rate environment.
But if you switch your point of view from the focus on debts to credit, you will have a different perspective on how the economy operates.
Debts are eating up money, and credits are providing money.
When the speed of eating up money is faster than providing money, we are at trouble. This problem is called a liquidity issue.
The economy is about trading and money flowing through each trade. If there is no money, the trade will not be complete. When the trade stops, people will not get paid and afford anything they want to.
The central bank is to prevent liquidity dry up and impact trading.
Of course, they will not directly impact the trade but indirectly manipulate interest rates, influencing the money flow from debts to credits or vice versa.
Why crypto market is stable?
Crypto market does not depend on debts yet!
Its risk solely depends on crypto exchange. The model is more simple and fragile on the modern view of finance as people can easily panic sell to bring down the market.
The crypto market is stable because more institutional investors are staking more than used to.
So crypto adoption is coming slowly but steady.
Support the writer here or join Medium here
Photo by Filip Mishevski on Unsplash
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