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Crypto Research

Modern Economic Nonsense — The Bitcoin apocalypse is coming

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The world is changing at a rapid pace. The digital revolution has transformed the way we do business and interact with each other. More and more people are getting used to using digital currency as a payment alternative and a hedge against inflation. The rise of cryptocurrency and blockchain technology has created a new phase in which traditional banking systems face new challenges. Bitcoin, the first decentralized cryptocurrency, has brought many changes to the financial sector. It has opened up an opportunity for people to transact business or invest anonymously without much fuss. However, its meteoric rise from obscurity to stardom in such a short period has given rise to fears that it could be just another bubble waiting to burst. Some even call it the ‘fake’ version of money, which is worthless once printed out into billions of pieces. Whatever your opinion on cryptocurrencies, one thing is clear – they are here to stay and will impact our economy sooner than later. If you intend on taking advantage of this change before everyone catches on, read on for some helpful information about Bitcoin and how you can prepare for its inevitable rise in value or in case the crypto market collapse.

What is Bitcoin?

Bitcoin is a digital asset and payment system based on an open-source algorithm. It was invented in 2008 with the objective of establishing a decentralized electronic currency. Individuals, organizations, businesses, and governments can use Bitcoin for payments to each other or store money in digital wallets. The total number of Bitcoins in circulation is limited to 21 million. It’s important to note that Bitcoin is not controlled or overseen by any central authority or organization. It’s a decentralized currency. The Bitcoin network depends on a peer-to-peer system that verifies transactions and controls the issuance of Bitcoins. It works like a peer-to-peer network, where users download a client program and broadcast transactions to other users. The network also uses a distributed ledger technology that allows users to create and store a transaction record or a “ledger”. When two users exchange Bitcoins without any intermediary, the transaction is completed.

How to buy Bitcoin

There are quite a few ways to buy Bitcoin. Here are some of the best ways. You can also get financial advice from a professional financial adviser or accountant. Alternatively, you can look for a Bitcoin exchange where you can buy and sell Bitcoins for fiat money. There are a lot of advantages to buying Bitcoin from an exchange. These include being able to trade CFDs (Contract for Difference), being able to trade based on leverage, being able to trade in large quantities, and being able to leverage your investment by shorting Bitcoin. Exchanges provide a safe place to buy and sell Bitcoin, and they also provide a marketplace where you can buy altcoins. A lot of exchanges allow you to instantly buy altcoins when you want to diversify your crypto portfolio. The most common way people buy Bitcoin is by exchanging money through an online broker. You can use a bank account, credit card, or PayPal to buy Bitcoin. There are two important things you need to remember when purchasing Bitcoin. First, you must store the Bitcoin somewhere secure. Second, you must never buy stuff with Bitcoin unless you plan on selling it immediately. If you don’t, you will be giving away your hard-earned money to a shady broker. Most brokers will mix your Bitcoin with thousands of other funds so you won’t get the full value of your investment. Be sure you are getting your money’s worth before you make a purchase.

Things you need to know about Bitcoin before buying it

– The price of Bitcoin is volatile. – When it comes to Bitcoin, volatility is a fact of life. The price can be very volatile, which makes it risky to use as a source of funding. – Bitcoin prices are not regulated. 

– Unlike traditional currencies, the price of Bitcoin is not regulated by a government authority or central bank. The price is instead determined by supply and demand. As more people want to buy or sell Bitcoin, the price goes up or down, depending on the demand and supply. 

– Bitcoin has a risk of being hacked. – Another important thing to note is that banks do not secure Bitcoin transactions, so they are vulnerable to hacking. If hackers get access, then Bitcoin investors might lose all their money. 

– Bitcoin is not accepted as legal tender. – Another thing to note is that Bitcoin is not recognized as legal tender in any country. This means that banks and other financial institutions do not consider it to be money. 

– Bitcoin is not regulated. – Bitcoin is not regulated or supervised by any government authority. This means that authorities and regulators do not oversee or regulate Bitcoin. 

– Bitcoin is not backed by assets or assets. – Another important thing you need to know is that although Bitcoin is a currency, it is not backed by assets like gold or the US dollar. This means that the amount of Bitcoin available in the marketplace is based solely on the amount of people willing to trade it. 

– Bitcoin is not FDIC-insured. – The last thing you need to know is that Bitcoin is not FDIC-insured. This means that if you lose your investment in Bitcoin it is your fault for putting your money at risk.

Safety considerations when buying Bitcoin

– Avoid scams. – Investment firms that promise high returns often target naive investors with fake Bitcoin offers. Be sure to invest only with firms you can trust. 

– Don’t invest more than you can afford to lose. – You should never invest more money than you can afford to lose. This is to protect you from losing all your money if the investment turns out to be a scam. 

– Don’t invest with money you can’t afford to lose. – You should also never invest money you can’t afford to lose because that’s a recipe for financial disaster. 

– If you are not sure about an investment, wait until you have time to research it further. – You should never invest anything that you are not totally confident in. You must research any investment you want to make before you put your hard-earned cash into it.

The end of Bitcoin

Bitcoin has gained a lot of attention over the past few years, which has led to many investors scrambling to get a piece of the action. But despite the hype, Bitcoin has failed to live up to the hype. The value of Bitcoin has plummeted more than 50% from its all-time high, and it is worth less than half of what it was worth at the beginning of the year. Should Bitcoin be no longer a reliable form of payment, and investors should avoid it at all costs? Even though Bitcoin has lost a lot of its value, it is still important to remember that any government authority does not back it, and its decentralized nature makes it extremely difficult to regulate. Therefore, the best way to protect yourself from the risk of investing in Bitcoin is to stay away from it altogether or invest within your risk appetite.

Final Words

The rise and fall of currencies is an ancient part of human history, but the advent of cryptocurrencies like Bitcoin is a reasonably new phenomenon. It is a decentralized form of digital currency, meaning that it is not regulated or overseen by any central authority. In the traditional banking sector, the process of making deposits and withdrawals is centralized, while cryptocurrencies are decentralized, which opens new opportunities for the future.

Reminder: I am not your financial advisor. 

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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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Photo by Aideal Hwa on Unsplash

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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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