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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Join BitDAO to earn a $BIT token here
Bitcoin isn't the best asset class 🥇 in the world. However, it is a hope that people uphold to yet to prove if it will become true 🤨. Unfortunately, some of the claims are not working well in current market conditions 😪. But that does not mean it will not work in the future ✌️.
1️⃣ Efficiency of the blockchain
The assumption of the technology is about increasing efficiency. However, blockchain did exactly the opposite. Each node is running purposely to slow down the process and records everything previously has been done to verify the transaction.
2️⃣ The lifespan of a blockchain
You may think the blockchain will exist forever. But the reality is that it probably will not. It will be very costly to store a large database of Bitcoin at some point, which outweighs the benefits of holding Bitcoin. Of course, it does not mean the blockchain will doom at some point in the future. There will have a solution when the time comes, but it remains a challenge for the future to be resolved.
3️⃣ Bitcoin will replace fiat currency
Although countries are joining to use Bitcoin as a legal tender, those countries will suffer greater economic recession than similar gold standard period with the same reason of illiquidity problem. There just are not that many Bitcoin existing in the world for countries to utilize and leverage.
4⃣ Miners can secure the Bitcoin network
This is the assumption of 51% attack. The Bitcoin network is still in the growing phase, which seems very stable. However, if the cost of mining outweighs the price of Bitcoin itself, the network may turn around and encounter double-spending everywhere, with few parties dominating the system.
It happened again and again in many other blockchain systems like Ethereum classic.
5️⃣ Bitcoin hedges the inflation
With the recent highest inflation rate in the U.S and around the world, Bitcoin does not work to hedge the inflation but goes with the flow.
The idea of hedging the inflation only applies within its own ecosystem. But the macroeconomy impact still applies to Bitcoin.
6️⃣ Bitcoin stores the value
Bitcoin only stores the value when the market is in an uptrend. When the market goes downward, it devaluates faster than any other asset class. It has been only one decade, and we will see how Bitcoin performs in the future.
One thing Bitcoin works every time - sanction resistance
No country was able to bring Bitcoin down. At least, it did not happen in the last decade. It does not mean there will not be possible to bring down the Bitcoin in the future.
🤔 My thoughts
Cryptocurrencies are very risky. But trying to learn them can provide you with some aspects of the future digital money can provide to.
Join BitDAO to earn a $BIT token here
Bitcoin isn't the best asset class 🥇 in the world. However, it is a hope that people uphold to yet to prove if it will become true 🤨. Unfortunately, some of the claims are not working well in current market conditions 😪. But that does not mean it will not work in the future ✌️.
1️⃣ Efficiency of the blockchain
The assumption of the technology is about increasing efficiency. However, blockchain did exactly the opposite. Each node is running purposely to slow down the process and records everything previously has been done to verify the transaction.
2️⃣ The lifespan of a blockchain
You may think the blockchain will exist forever. But the reality is that it probably will not. It will be very costly to store a large database of Bitcoin at some point, which outweighs the benefits of holding Bitcoin. Of course, it does not mean the blockchain will doom at some point in the future. There will have a solution when the time comes, but it remains a challenge for the future to be resolved.
3️⃣ Bitcoin will replace fiat currency
Although countries are joining to use Bitcoin as a legal tender, those countries will suffer greater economic recession than similar gold standard period with the same reason of illiquidity problem. There just are not that many Bitcoin existing in the world for countries to utilize and leverage.
4⃣ Miners can secure the Bitcoin network
This is the assumption of 51% attack. The Bitcoin network is still in the growing phase, which seems very stable. However, if the cost of mining outweighs the price of Bitcoin itself, the network may turn around and encounter double-spending everywhere, with few parties dominating the system.
It happened again and again in many other blockchain systems like Ethereum classic.
5️⃣ Bitcoin hedges the inflation
With the recent highest inflation rate in the U.S and around the world, Bitcoin does not work to hedge the inflation but goes with the flow.
The idea of hedging the inflation only applies within its own ecosystem. But the macroeconomy impact still applies to Bitcoin.
6️⃣ Bitcoin stores the value
Bitcoin only stores the value when the market is in an uptrend. When the market goes downward, it devaluates faster than any other asset class. It has been only one decade, and we will see how Bitcoin performs in the future.
One thing Bitcoin works every time - sanction resistance
No country was able to bring Bitcoin down. At least, it did not happen in the last decade. It does not mean there will not be possible to bring down the Bitcoin in the future.
🤔 My thoughts
Cryptocurrencies are very risky. But trying to learn them can provide you with some aspects of the future digital money can provide to.
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