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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Did you know you can earn crypto through Honeygain now? Jumptask has partnered with Honeygain to boost your passive income! You can earn more than a 50% bonus through crypto! Check out here for the announcement and join here to earn your $5!
Due to the recent crash of Luna, people wonder what we can do to make a better stablecoin? How about finding something that is very stable? Like AriZona Iced Tea ☕? Check out USDTea!
AriZona Iced Tea has been stabilized at 99 cents since 1992. So does the tea will continue stabilizing at 99 cents in the future?
Let's see how they stabilize the product at 99 cents since 1992.
🫖 Succesful of AriZona Iced Tea
The company sells about 1 billion 99-cent cans each year. The company is second to PepsiCo's Lipton, Pure Leaf, and Brisk. Lossing customers are not more detrimental than the rising price of their business. And they do not spend a load of money on commercials.
🥳 Previous champion
Not to mention that Coke Cola was the record holder to stabilize their product price for more than 70 years of their 6.5-ounce bottle at 5-cent from 1886 to 1959.
🍔 Big Mac Index
You probably heard that Big Mac from MacDonald is an indicator of the actual inflation rate.
It is a Burgernomics.
Why not use Big Mac as a stablecoin asset backing then?
I think it is a safer bet on Big Mac than AriZona Iced Tea because Big Mac is almost everywhere globally compared to AriZona Iced Tea which is relatively stable in the very short term.
⚖️ Bad Idea of Asset-backed Currency
Anything that is backed by assets is such a bad idea! It has so many downfalls that make the market very unstable.
1️⃣ Volatile
Since there is no way to determine the true valuation of the asset, the market will be volatile for missed pricing.
2️⃣ Open to error
There will always have room for the exchange rate to missed calculated due to human errors.
3️⃣ Over supplies
Physical assets always have limited supply, but the demand can always exceed. The market was due into correction until people realized there weren't that many supplies available.
4️⃣ Illiquidity
When the market goes down, not everyone wants to redeem the backed asset. Think about USDTea. If the USDTea de-pegged, would you want to redeem 100 bottles of AriZona Iced Tea?
You may argue that it is better than nothing but the point of having a stablecoin is to stabilize the price. Right 🤣?
🧠 My thoughts
I think Big Mac makes more sense if a stablecoin wants to peg with. But it is still very unstable to use the asset-backed method.
Did you know you can earn crypto through Honeygain now? Jumptask has partnered with Honeygain to boost your passive income! You can earn more than a 50% bonus through crypto! Check out here for the announcement and join here to earn your $5!
Due to the recent crash of Luna, people wonder what we can do to make a better stablecoin? How about finding something that is very stable? Like AriZona Iced Tea ☕? Check out USDTea!
AriZona Iced Tea has been stabilized at 99 cents since 1992. So does the tea will continue stabilizing at 99 cents in the future?
Let's see how they stabilize the product at 99 cents since 1992.
🫖 Succesful of AriZona Iced Tea
The company sells about 1 billion 99-cent cans each year. The company is second to PepsiCo's Lipton, Pure Leaf, and Brisk. Lossing customers are not more detrimental than the rising price of their business. And they do not spend a load of money on commercials.
🥳 Previous champion
Not to mention that Coke Cola was the record holder to stabilize their product price for more than 70 years of their 6.5-ounce bottle at 5-cent from 1886 to 1959.
🍔 Big Mac Index
You probably heard that Big Mac from MacDonald is an indicator of the actual inflation rate.
It is a Burgernomics.
Why not use Big Mac as a stablecoin asset backing then?
I think it is a safer bet on Big Mac than AriZona Iced Tea because Big Mac is almost everywhere globally compared to AriZona Iced Tea which is relatively stable in the very short term.
⚖️ Bad Idea of Asset-backed Currency
Anything that is backed by assets is such a bad idea! It has so many downfalls that make the market very unstable.
1️⃣ Volatile
Since there is no way to determine the true valuation of the asset, the market will be volatile for missed pricing.
2️⃣ Open to error
There will always have room for the exchange rate to missed calculated due to human errors.
3️⃣ Over supplies
Physical assets always have limited supply, but the demand can always exceed. The market was due into correction until people realized there weren't that many supplies available.
4️⃣ Illiquidity
When the market goes down, not everyone wants to redeem the backed asset. Think about USDTea. If the USDTea de-pegged, would you want to redeem 100 bottles of AriZona Iced Tea?
You may argue that it is better than nothing but the point of having a stablecoin is to stabilize the price. Right 🤣?
🧠 My thoughts
I think Big Mac makes more sense if a stablecoin wants to peg with. But it is still very unstable to use the asset-backed method.
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