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...
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 ...
xuanling11The only way
Technology isn't always directly translate to what we desire it to become. For example, we wish social media to become a place to keep in touch of others but it created another whole new level of distrust and misinformation that spread like a Pandemic. Be careful of your wishes! Like AI we think they can bring up a new level of the game in the creative industry and possibly to replace writers like you and me, but can they? It seems they are very powerful to execute what we want them to, ...
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...
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 ...
xuanling11The only way
Technology isn't always directly translate to what we desire it to become. For example, we wish social media to become a place to keep in touch of others but it created another whole new level of distrust and misinformation that spread like a Pandemic. Be careful of your wishes! Like AI we think they can bring up a new level of the game in the creative industry and possibly to replace writers like you and me, but can they? It seems they are very powerful to execute what we want them to, ...
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The difference between crypto and the traditional market is that in crypto, no one bails you out.
https://twitter.com/CoinDesk/status/1593306001838465024
So why is it so difficult to bail out crypto firms rather than traditional ones?
The structure of Debt!
It is more explicit about how risky crypto compares to previous years.
I participated in the space in the early days.
With crypto evolving and mainstream adoption with many collapsed projects and trading platforms, the eagerness for crypto has become more prominent and risky.
Crypto has blurred the line between all traditional assets.
It is good and bad.
Good in the sense that crypto can become anything beneficial to own.
We saw its first attempt to become digital money through purchasing a pizza and stock-like trading asset or company shares issued through ICO.
But there is also the downside of such a blurry line: crypto inherent many flaws that traditional assets carry, such as illiquidity and over-leveraging debts.
With the recent FTX collapse, it will be more and more clear on how to handle the debt of crypto rather than money.
The ratio of crypto to cash is not 1:1!
The debt ratio on crypto is not nearly 1:1!
It is more risky to carry crypto lending and it is unsustainable.
Because crypto is not sound money, the loan or debt will be more fluctuate than ever!
In the early crypto days, you lost money on trading platforms due to the market downturn. You were losing the money value. As long as the money exists, you can still claw back.
When you loss money in crypto lending, you loss everything because the third party has leveraged your money, and it is out of your control.
The debt structure of crypto lending is not 1 to 1 ratio of the debt of money structure.
Crypto can be used more than just money, it can be a treasury in DAO, it can be an NFT back-up, or anything you can use of.
The risk of all these utilities is that it will over-leveraged crypto through its unrealistic valuation in the bull market.
When the bear market comes, the devaluation accelerates, and projects likely go under.
Now you will not only see a loss track of the crypto valuation, but you will decelerate of lending facilities with ever more significant losses you need to absorb.
And there is no any other asset that can have such valuation accelerate so fast in the short term to cover your losses.
That is the reason all crypto "companies" will go underwater and file for bankruptcy one by one.
The over-leveraged is the nature that embeds into crypto lending and borrowing.
Of course, FTX is another story that is fraudulent of users' money to purchase luxury goods for their C-suite management.
https://twitter.com/gurgavin/status/1593292792582635520
Yes, I lost money in each crypto cycle, and I learned from each mistake I made.
And that is why no hype and no all in to crypto.
We are just ordinary people who test the water with our hard earn money.
Photo by Egor Myznik on Unsplash
The difference between crypto and the traditional market is that in crypto, no one bails you out.
https://twitter.com/CoinDesk/status/1593306001838465024
So why is it so difficult to bail out crypto firms rather than traditional ones?
The structure of Debt!
It is more explicit about how risky crypto compares to previous years.
I participated in the space in the early days.
With crypto evolving and mainstream adoption with many collapsed projects and trading platforms, the eagerness for crypto has become more prominent and risky.
Crypto has blurred the line between all traditional assets.
It is good and bad.
Good in the sense that crypto can become anything beneficial to own.
We saw its first attempt to become digital money through purchasing a pizza and stock-like trading asset or company shares issued through ICO.
But there is also the downside of such a blurry line: crypto inherent many flaws that traditional assets carry, such as illiquidity and over-leveraging debts.
With the recent FTX collapse, it will be more and more clear on how to handle the debt of crypto rather than money.
The ratio of crypto to cash is not 1:1!
The debt ratio on crypto is not nearly 1:1!
It is more risky to carry crypto lending and it is unsustainable.
Because crypto is not sound money, the loan or debt will be more fluctuate than ever!
In the early crypto days, you lost money on trading platforms due to the market downturn. You were losing the money value. As long as the money exists, you can still claw back.
When you loss money in crypto lending, you loss everything because the third party has leveraged your money, and it is out of your control.
The debt structure of crypto lending is not 1 to 1 ratio of the debt of money structure.
Crypto can be used more than just money, it can be a treasury in DAO, it can be an NFT back-up, or anything you can use of.
The risk of all these utilities is that it will over-leveraged crypto through its unrealistic valuation in the bull market.
When the bear market comes, the devaluation accelerates, and projects likely go under.
Now you will not only see a loss track of the crypto valuation, but you will decelerate of lending facilities with ever more significant losses you need to absorb.
And there is no any other asset that can have such valuation accelerate so fast in the short term to cover your losses.
That is the reason all crypto "companies" will go underwater and file for bankruptcy one by one.
The over-leveraged is the nature that embeds into crypto lending and borrowing.
Of course, FTX is another story that is fraudulent of users' money to purchase luxury goods for their C-suite management.
https://twitter.com/gurgavin/status/1593292792582635520
Yes, I lost money in each crypto cycle, and I learned from each mistake I made.
And that is why no hype and no all in to crypto.
We are just ordinary people who test the water with our hard earn money.
Photo by Egor Myznik on Unsplash
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