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Bitcoin Reduces Cost Of Living

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With the cost of living increasing yearly, Americans are forced to spend more than ever on things like housing, medical costs, and food. In light of this, reducing one’s expenses has become a top priority for many people. Therefore, reducing one’s cost of living is a wise strategy that can go a long way toward significantly improving your life. While it may seem counter-intuitive initially, reducing one’s cost of living directly translates into better financial outcomes. For example, a study conducted earlier this year by the National Bureau of Economic Research found that a reduction in one’s cost of living by 20% resulted in an annual savings of $2,300. In other words, 20% reduced price of living translated into $1,200 saved each year. While this may seem small compared to the amount already spent on average Americans every day, collectively spending $1,200 annually would be enough to reduce our country’s budget deficit by $1 TRILLION!

What is the cost of living in your area?

Cost of living is the average price of the items in your area that would cost you $1 in another location. For example, if your neighborhood has a high cost of living (i.e., it costs more than $1 to live in that area), you may be able to lower your living costs by moving to a lower-cost area. Likewise, if your neighborhood has a low cost of living (i.e., it costs less than $1 to live in that area), you may be able to increase your monthly living expenses by lowering your monthly mortgage payment. In other words, lowering your cost of living in one location and increasing your monthly living expenses in another would be positive developments!

Why Housing Market will become a time bomb to fiat currency

The cost of housing artificially increases due to unlimited demand. That is a problem. There is no incentive to change the practice in the industry that is protected heavily through regulations. The price of a house increase because people mindless believe the value will hold, which is a wrong conclusion about the housing market. 

There is no store of value in the house because it does not produce anything rather than its own valuation that benefits to the owner of the house. There is no innovation to push the industry. It is too reliable to builders who lack of incentive to innovate. 

The housing market is due to collapse no time only because there are more suckers to buy into the market and spend more money on the house that builders can quickly profit from. The 2008 financial crisis will be more frequent in the future because the industry has not changed its way and housing regulations will likely continue relying on due to the greed of the builders and financial institutions until the entire fiat system goes down with it.

What can you do to reduce costs of living?

A number of things can lower the cost of living at your location. One easy way to do this is to buy a new house. Another easy way to lower the cost of living is to change careers. In other words, there are many ways to lower living costs, and each has its specific application.

Health care costs

Health care is another one of those things that has wide- reach effects. In fact, having a higher health care costs in a location can be a good thing. Why? Well, having health care in your home can reduce the risk of certain diseases. You’re less likely to develop certain diseases if you have good health. For example, high blood pressure can lower blood pressure in people who have high blood sugar. Insulin can help people with type 2 diabetes get better, but it’s not the only thing that helps. Other health-related things like medications, surgery, and surgery-type procedures can lower costs of living.

Food costs

Many people think of food as a pretty basic expense. However, the latest studies show that people are starting to realize the value of this expense. A growing portion of society is making an effort to eat healthy food. This means that people are trying to eat more fruits, vegetables, and fibers. It also means that they are increasing the amount of healthy fats and proteins in their diet.

How to decrease your cost of living?

There are a number of things you can do to decrease your cost of living. One way to do this is to improve your budget. When you figure out how much you’re actually spending each month, you’ll be able to identify any potential savings and make these happen. Another way to decrease your cost of living is to travel more. There are many benefits to traveling. It can reduce your travel costs. It can improve your health. It can improve your credit. And most importantly, it can improve your quality of life!

However, you will run out of options from moving into the lower-cost area where living costs will eventually catch up and traveling costs will too. Because there is no housing innovation, everyone will go down with fiat.

Conclusion

The cost of living in your area can be a significant factor in your financial well-being. If you can reduce your living costs, you can improve your financial situation and make it easier to borrow money. You can also lower your living costs by buying a new home, moving to a lower cost area, or changing careers. However, fiat system will be no longer able to protect your wealth in the long term and Bitcoin can potential help you out. Your ability to reduce your costs of living can have a significant impact on your financial future.

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Crypto Research

The Future of Machine War II

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In late 2021, I wrote an article about A.I. vs. Blockchain. I realized it was closer than I expected.

https://medium.com/@xuanling11/artificial-intelligence-vs-blockchain-the-future-of-machine-war-b685d208ba20?sk=874af90c7acbe857fa004c0ebe0d5e28

Web2 is leading a future of technological centralism. 

The way we see the world in ancient is what we saw became what we believed. Later, the enlightenment process helped humans realize what they had seen was disguised by the nature principle. Once we tested our assumption and received accurate results, we thought we had mastered the nature principles. Yet, we did not make the world better than we thought we could. 

We are living in a world in which companies know more than you than yourself. Companies can likely tell you what you should believe without letting you know. 

The secret weapon that companies like Google invented is A.I. or Artificial Intelligence. 

If A.I. can think like a person, it can easily replace you! Since companies got all your data, you freely offer them by using their free services, and they can replace you one day without you realizing it. 

Without all conspiracy theories behind what Google may or will secretly develop, A.I. reaching consciousness is … impossible.

If it does, Google has successfully made a human – dumb!

The most advanced A.I. – Tesla Autopilot Program cannot distinguish objects between humans and other moving objects during driving.  

Using technology makes people dumber than they think because it takes away your consciousness – the ability to think uniquely!

Blockchain is the future of decentralization.

We need a peer-to-peer system to regain consciousness and break the chain from Web2. 

It gives individuals the power to rethink information.

Think about today’s media; all information is filtered to offer readers without any surprise. News is data that Web2 selected specifically for you to read. 

We need a decentralized system so that you can receive unfiltered information and gives you a surprise that sparks ideas of imagination.  

Web2 is afraid of the blockchain because they are too big to fail. 

 They mimic the blockchain by creating a centralized node system – social media network. 

It is a net growing outward through a single point. Only the problem is that connection is facilitated by technology. And the biggest failure is such technology has a single point of failure problem. 

And they cannot escape the law of economics – the law of diminishing. So we will see Web2 grow slower due to the law of diminishing that they require more data with few increments of advancement through A.I. without any breakthrough because A.I. is a deterministic system that works with a lack of randomness. 

In Web2, they assumed everyone was stupid, and they offered solutions to everyone.

In Web3, everyone is good and should anticipate solving a problem together.

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Crypto Research

Financial sanction to mixers

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Have you heard about financial sanctions from the US on virtual currency? At least, I have not yet. But the US Department of Treasury has issued sanctions on two crypto services: Blender.io and Tornado Cash.

To clarify, the US sanctions on tools but not target specific entities or groups of people.

So why bother to sanction something that the government probably won’t be able to sanction in the first place?

What is a mixer?

A cryptocurrency mixer, sometimes referred to as a tumbler, is a tool for money laundering. The sole purpose of the invention is to make transactions untraceable.

How to mix?

Even crypto is pseudo-anonymous, but it is traceable through your wallet address. A mixer is a black box service to filter your traceable wallet address into the untraceable wallet address.

How to wash your money clean in the traditional way?

https://dimensiongrc.com/the-stages-of-money-laundering/

The assumption is you will not get caught at each stage, and then you place your dirty money in a bank through companies and use the funds to purchase legal goods like houses or luxury goods.

There are mature regulations and rules to stop you from putting your dirty money into banks.

Digtial money landury

https://www.eurospider.com/en/know-how/compliance/211-what-is-a-cryptocurrency-mixer

A Crypto mixer or tumbler is a service to pool dirty digital currency in their favor and redistribute it into designated wallet addresses or addresses randomly generated. 

It is a challenge to stop transactions because there is no entry point for law enforcement to stop at each stage. 

https://home.treasury.gov/news/press-releases/jy0768

Ultimate Mixer

Tornado Cash is the king of the mixer. Unfortunately, there is just no way to trace transactions anymore. It is a smart contract with zk-SNARKs (zero-knowledge proofs) that does not require revealing a wallet address during transactions and ghostly distributed funds without leaving any traces.

This tool is the ultimate weapon that the government has to shut down, or there is no way to prevent transactions.

In Conclusion

Let’s change the future – legally. 

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Crypto Research

Why there is not crypto banking exist

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We have always heard about cryptocurrencies, crypto exchange, banking, and trading platforms, but we do not really grasp the idea of crypto banking. Crypto banking is a contradicted idea. If crypto is to replace banks and give users full control of digital money, why do you put your crypto into the bank? The new research paper argued that there are risks for banks to adopt crypto, but they did it anyway.

Banks want crypto

Cryptocurrency has a rough road at the beginning and continues to experience a bumpy road ahead. The institutional investors were watching its performance. In early 2017, institutional investors had opportunities to adopt crypto, but they found out the return of the investments was less than traditional financial assets. Regulations were not a concern for some individual institutional owners, but banks were conservative at the time. As a result, some investors adopted it in early 2018 than banks did. Then suddenly, the crypto market took off in 2020, leaving many banks to regret their decision in 2017. Many banks set up their digital investment group to rush into the market and increase prices. Of course, many of their investment positions are instead of shadow positions. It is unclear how much they have been invested in and what vehicles they took to invest in cryptos.

Crypto Exchange

Crypto exchange is a bank-like platform for crypto. Banks offered a place to purchase fiat currency. Crypto exchange did the same duty as traditional banks did. Since there was a gap between the crypto and banks, the crypto exchange took responsibility and offered crypto services. The crypto exchange took off after 2020, and they left banks in the dust. Then, crypto winter came in early 2022, and banks again hesitated to enter the crypto and started denouncing crypto usage, particularly in the Defi area. But interestingly, they tried to find ways to get into crypto without being directly exposed to cryptocurrencies—hint: through hedge funds.

How much banks exposure to crypto

We do not know how much banks have been exposed to crypto. We learned that the big Wall Street players were exposed to the services of the digital asset through State Street of their $41.7 trillion assets. Some have been exposed due to Luna’s collapse and 3AC bankruptcy. But again, no specific dollar amount was provided. 

Survivors

Since the crypto winter, institutional investors have been cautious about crypto exposure. However, crypto exchanges are the winner again. They are exposed to crypto and take risks more than banks do. As a result, they likely will weather the uncertainty. Furthermore, there is no need for crypto banking to handle your crypto assets since many such services will not survive long in the crypto environment. 

Crypto is resilience

Despite its fluctuating price and unsecured assets, crypto is resilient to phase out any bad business ideas and bad actors in the economy who wants to or try to dominate the market but who transfers risks to users to believe they are the one who should take responsibility for their carelessness. Unfortunately, those business models will not survive long.

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