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Modern Economic Nonsense — Bitcoin vs. Real Estate

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Banks hate Bitcoin ₿, and they cannot do anything about it. So, therefore, they are joining altogether.

I was not surprised by JPMorgan’s announcement about their Bitcoin investment over the Real Estate investment. 

Real Estate has no value. It is expensive not because it is valuable in any rational sense. People kept buying up the real estate because there was government support not to allow it to fail. It is the income stream for the government through taxation and the income stream for the bank to charge through loans. 

Does such a process sustainable? Apparently, it does not. 

Nations with expensive real estate have their economy stagnate. 

Economists try to sell you that it is not a supply and demand issue. The more people buy real estate, does not let the price drive up! It should go down! 

Unfortunately, when the price goes down, both banks and the government lose their income streams. It should not allow this to happen! 

So people keep buying up the real estate, and the cost of living is skyrocketing. Whoever bought it earlier laughs at people who bought it late. Such lubricated business is about to bust sooner or later. 

The problem of real estate is similar to stablecoin. Everything is created from nothing, and when something is too big to fail, it fails miserably. 

It brought down the entire global economy in 2008 due to the housing crisis. It will reoccur again. Banks knew better than everyone else. Nothing can raise its price as high as no one can afford, so such an asset will come down fast. It gets worse when such an asset is illiquidity.

You cannot exchange your real estate instantly with a load of money. When the market crashes, the price will drop faster than you to sell your real estate. 

Also, your real estate will be worth much less than initially appraised. 

Of course, the government can print more money to support the real estate market. But such printing level is much upscaling than the COVID level they did. 

The key takeaway is there is no insurance plan when your housing price goes down. 

That is probably why JPMorgan is about to dive into Bitcoin

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Crypto Research

Future of the blockchain

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The blockchain is an automatic public ledger system to record transactions and track their accuracy while providing transparent information to all participating parties. The benefits of using blockchain are transparency, immutability, and efficiency. 

However, the opponents of the blockchain argued that it is an invaded, manipulated, and costly system.

If you support blockchain technology, every sector should implement such technology to make it transparent. 

The blockchain, in theory, can replace every institution. 

And blockchain that can build on top of layers will provide additional features for future uses.

Financial services

Cryptocurrencies are yet to challenge the current financial system. However, when intermediaries are costly to make the system runs inefficiently, it is time to change. Banking, trading, funding, accounting, insurance, and many other financial services are expensive, and people seek better and cheaper solutions. 

Even the money that you are using is about to be replaced by the blockchain someday in of the future.

The longer the current system exists, the more inefficient such system will become, losing its integrity on its own while trying to dominate the market.  

Travel and Mobility

Blockchain technology does not restrict its ability in the air traveling, and Uber can be replaced by the blockchain too. In addition, the blockchain can replace Tesla if they lose integrity and users want their own car companies. 

Aerospace and Defense

If not, the blockchain will replace aerospace technology. The supply chain system can allow the government to secure its data information.

Hospitality

You can book your hotels and have a shared room through Airbnb App in the blockchain system. Customers’ data can be secured in the blockchain to protect their privacy.

Infrastructure and Energy

Companies were monopolies in this sector. However, they may not be able to dominate anymore through the blockchain.  

Construction and Real Estate

The blockchain can help manage large data volumes with more accurate record-keeping. 

Healthcare

Why healthcare is costly is a myth, but blockchain can provide insights to reduce costs. 

Education

Blockchain can also make education cheaper and more accessible to everyone. 

In Summary

It is likely to have every business sector with a blockchain run as an alternative. The technology will empower individuals to have their own choice of the business model they prefer.

If you enjoy reading my articles, buy me a coffee here.

Photo by Terry on Unsplash

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Crypto Research

Your future landlord is buying crypto

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As the digital age takes off, so too does the interest in digital currencies and their potential use cases. From mobile money to bitcoin trading, digital currencies are becoming a staple of everyday life. In fact, according to news, 83% of millennial millionaires own cryptocurrencies. That’s a fast growth rate for a digital currency that’s still relatively new. But cryptocurrency is about to become mainstream — just wait and see how crypto becomes an integral part of people’s everyday lives. And your future landlord is hoarding them.

Cryptocurrency adoption is on the rise.

In the year 2020, the number of people who used cryptocurrencies grew by a staggering 36 percent, to a total of 7.3 billion people. This growth is largely attributed to a number of important events, including the advent of new coins and the growth of online trading platforms.

Decentralized platforms are the future.

The decentralized, or distributed, platform model is ideal for solving real-time problems. For example, blockchain technology uses a decentralized, or distributed, model to achieve its main goals. Iron gate, a platform developed by venture capitalists aiming to disrupt the online trading ecosystem, is one of the most notable examples of a decentralized platform.

Decentralized identity is becoming a thing of beauty.

As the popularity of digital currency rises, the need for decentralized, or distributed, identity theft protection is also apparent. Organizations are racing to implement decentralized identity systems, in an attempt to combat the growing number of potential attacks. More and more people are forming “decentralized” or “distributed” social media accounts, and using them for everything from shopping to trading. As more businesses adopt decentralized systems, the need for centralized solutions disappears almost entirely.

Secure and private digital identities are key for digital transformation.

Digital identities are becoming more valuable as more people access the internet on a daily basis. One of the most significant benefits of digital transformation is making digital accounts and identity management more secure. According to a report, people are more likely to use a digital account if it’s associated with a trusted third party. Plus, digital identities are often tied to an individual’s work or personal history, making them easy to trace.

Mainstream adoption of crypto

It’s easy to get comfortable with the idea of using digital currencies as a store of value. You know what values are supported, and you know how to spend the money. In addition, digital currencies are often payment methods that accept American dollars as the payment source. But many people still haven’t thoroughly adjusted to using digital currencies as a store of value.

Conclusion

Cryptocurrency adoption is on the rise. The number of people who use cryptocurrencies grows daily, and the amount of money left in all of them grows with them. This growth is due to several important events, including the advent of new cryptocurrencies and the growth of online trading platforms. Most importantly, cryptocurrency users are moving away from paper wallets to digital currencies. Now, more than ever, businesses must adopt digital credentials and digital identities. These should be done to establish a proven track record of quality service delivery, and provide customers with peace of mind when funding their goals. With the rise of decentralized digital identities, the need for centralized credentials is eliminated. As a result, the number of potential threats is greatly reduced, and the potential for security and misuse of digital credentials is greatly reduced.

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Photo by Julian Ebert on Unsplash

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Crypto Research

Why Gold System Comes Back

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The modern financial system hates the gold system, which makes gold a fiat currency. Because they claimed the gold system created too many unnecessary financial crises. But the real problem is the corrupted system was designed to abandon the gold standard. 

The Newton’s System

Many people may not be familiar with the 17th-century of living style at all. Back in the 17th century, ideology collided between theology and science. 

Theology told the earth is the center of the universe, but science told the other way. 

In 1717, Britain moved from the silver standard to the gold standard with the help of Newton’s new minting method of precisely coin-making technology. 

Silver Standard

Silver is more abundant than gold. Therefore, silver is a perfect candidate for fiat currency in the ancient world because it is lighter weight to carry and much more available globally. But similar to gold, there is a limitation in the supply. Because of the supply restriction, the government wants more control of the currency, causing its economy to inflate and deflate. It prohibits nations from creating credits out of thin air. Therefore, the financial system has its integrity.

Gold Standard

Like silver, the gold standard has its system integrity to prevent nations from inflating its economy. But the addition to its integrity, gold cannot be counterfeit like silver. It makes gold a perfect fiat system with complete integrity.

A trust system

The current fiat system claims it is a trust-based system. But to be able to demand trust, the system does not offer its integrity. Trust works from both sides. If there is no integrity in the design, users will lose their faith in the system to choose another. However, when you only have one option, you have no option but to stick with one choice.

Current Fiat System

The current fiat system’s danger is trying to remove the deflation. It has worked well in the last 50 years or so. There is only an inflation rate that accelerates or decelerates. Only the problem with this system is you are creating a winner that can dominate the entire system until it fails to wipe out the whole system and trigger a reset.

Unlike precious metal standards, you can choose between self-governing integrity to punish the government’s negligence; government is unstoppable in the modern fiat system. 

Cryptocurrency System

Cryptocurrency is to create a new integrity system to build a new trust system for all. It is a peer-to-peer system to make the system in check while people will use it if it can prove its integrity.

If you enjoy reading my articles, buy me a coffee here.

Photo by Michael Dziedzic on Unsplash

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