Tag Archives: fiat

The Future of Machine War II

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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Financial sanction to mixers

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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Why there is not crypto banking exist

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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Banks are secretly hoarding crypto

In the digital economy, everything is connected. As a result, banks are hogging digital currency to protect their wealth and secure deposits. As a result, banks are worrying about their future. Banks are not growing faster than the money created by the government. Cryptocurrency, on the other hand, is growing faster than ever.

What’s up with all the digital currency being stored on bank servers?

Depending on your perspective, digital currency is either a good thing or a bad thing. You could actually see the difference in your financial statements if you spend a lot of time on the stock market or on investment instruments such as ETFs or savings accounts.

The general consensus is that digital currency is a positive as it makes investing easier and more attractive. But it’s not just investors who find digital currency attractive because it gives them more flexibility and security than paper money. Financial institutions also use digital currency for payments and as a store of value.

Why is banks hoarding crypto?

There are many reasons banks are hoarding digital currency, but the most obvious is because they’re trying to protect their own wealth and keep their deposit accounts healthy by managing the flow of funds. When money is required to pass through a number of hands, it is fragmented and difficult to trace. Because of this, money laundering and other nefarious activities are difficult to detect. Banks know fiat currency will likely become worthless. Boarding crypto is an excellent way to catch the train of the future.

How to protect yourself against cryptocurrency theft and scams

Banks may offer services to protect you against cryptocurrency theft and scams. One way is by keeping your online banking accounts and online banking records (i.e. online banking statements) in a safe place.

Another way is by using a virtual bank account or investment fund (i.e. a retirement account). Keep your financial accounts separate from your other assets and easily accessible when you need to access them.

Conclusion

Digital currency is a great way to store and invest money. It’s easy to set up and uses standard financial terminology for transfer of funds. Because of this, it’s easy to use and use it for a variety of financial activities from purchasing things to conducting business.

However, traditional banking and financial practices are joining the crypto force. As crypto becomes more of a mainstream currency, there are many other risks that users need to be aware of. As with every financial transaction, you should consider others’ financial futures and avoid causing financial damage due to your actions.

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The Crypto has no greed problem

Hacking, rug pulls, VC bankruptcies, and founders running away with their luxury cruises are just a few that you see in Hollywood movies but occur in the crypto world. Many people blame people’s greed in the crypto market and believe the government should regulate people’s greed. Does that actually work?

A free market with greed

Some said the free market is a wild west because people are full of greed. That is why we need regulations to punish those people. They are criminals. Wait a minute. You probably believe this statement is 100% true. 

To justify such a statement, the government has a right to set up an entity to oversee the activity. That is why the central bank (The Fed) was founded after the 1929 financial crisis to prevent a bank run.

If you only focus on the single event of 1929, it is correct that the central bank was needed. But, a history is a continuance event. Therefore, you cannot single out one occasion to prove your statement is accurate. History continued, and the Americans experienced far worse than the 1929 financial crisis – the Great Depression. Who created it?! Hint: the Federal Reserve.

Why Financial Crisis is Healthy

When the market is excellent, every business is a sound business. However, there is no perfect life to make everyone happy. The financial crisis is a natural process to screen out bad business ideas. The government wanted to make everyone happy and started to intervene in the financial crisis. However, lousy businesses survived and controlled the market sector, believing they were doing great. They pushed out competitors who would take risks to innovate and sacrifice the future of the growth to exchange for the current market booming. The longer the government intervention, the waste the economy will generate to offer of making everyone happy. Ultimately, the government will carry large debts to make everyone happy, and the economy will not grow to provide a better living standard for future generations. Instead, it will bring the entire nation’s living standard backward.

Business is about monopoly

There is no way for businesses to become profitable unless they are a monopoly and dominate the market. For example, Google is a monopoly. However, even though people knew, they did not refer to them as a monopoly because everyone relies on Google daily. Without Google, one day, someone may not survive. The modern monopoly’s success is because they discovered a secret – innovation. We all believed monopoly could not innovate in the past, but the modern monopoly has cracked the code and become unstoppable.

Government Business Partners

When monopolies can innovate, they grow bigger and more powerful. So they can replace the government eventually. So the government needs to partner with them rather than break them apart. That is what we are currently living under. The big tech companies will grow more powerful and unstoppable. So the government will grow together. And here is where greed comes into play. Both business and government are business partners. They are more greedy than ever, and no way they punish each other. Sorry, no more financial crisis – no more opportunities to change if you are poor in the first place.

Crypto gives you opportunities

If the government will not punish the greed of their business partners, why the government bothers to punish crypto greed -because crypto offers opportunities to change? 

Change becomes very scary for the government and its business partners. Monopolies innovate to prevent changes, and the government protects the market without potential changes. Only the crypto can bring the change.

So, next time people argue that crypto is greedy, you should correct them, and that crypto is about change!

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The parallel money system

Why has the government been questioned when deciding to interfere with the economy? Why do we have recessions and even depressions in the first place?

Milton Friedman was an American economist who questioned the government’s position when it interfered with the economy. Opposite to Keynesian economics, which supports government intervention, Milton claimed that the government was a guilty one who constantly caused the economy to run into recession and occasionally into depression.

Why was the government bad at the economy?

The government likes to tell people what they should and should not do. However, the government has no better understanding of the economy than people do. They got resources and do not face any consequences even if they make mistakes. 

The market is a price system

Price is information transmitted from buyers to sellers. It assesses the relative values of exchanged goods and services. If the market sets prices, it shows consumers and producers are at the agreement that the market is the most efficient route to complete such transactions. Price usually contains the most important information between buyers and sellers before completing the transaction. Any distorts of such information will make the route inefficient and lead to waste. The government is wasteful simply because they usually distort price information through its influence, make unilateral decisions that impact the economy incorrectly, and waste resources for the general public to determine what is going on. 

In the current high inflation environment, the government made a mistake regarding the inflation assessment and made mistakes likely again during the recession and turned the economy upside down into recession faster than they anticipated. 

What is the function of the market?

The market is meant to distribute resources according to people’s needs, not their ability to pay. However, the government wants people to think the market is their ability to pay, so they can manipulate the pay rate that directly influences the market. When the market was forced to change, the consequence was that the market would have to restore its balance after the change, then the government would change it again; the market would restore again. Will a break point exist when the market can no longer heal itself? The answer is yes, and it triggers inflation. Inflation is bad because it eats the value of money. Similar to a black hole, it sucks everything in no matter what and does not give anything back.

How to restore the market?

There are several ways. One is to replace the government with a new one to reset the economy. But, of course, the cost is enormous and politically intolerable. The second is to replace the central bank. It is unacceptable because big banks will not allow it, and politicians forbid it. The third way is to replace it with a new fiat currency. It is not permitted politically if your fiat current is the world reserve. It would trigger a global financial crisis. The fourth solution is government controlled economic system. When the government controls the economy, it can easily control unemployment to a manageable level to press down inflation and then continue interfering with the market until it can no longer do so. Then the first solution will kick in.

The parallel money system

In the modern digital economy, we luckily have alternative money that helps us better understand the market and our economy. Compared to the existing financial system, the cryptocurrency market cannot be manipulated by the government but to protect the users. This is because the economy in the digital currency is a pure price system. Therefore, the government cannot and would not care to interfere with the system. Thus, the market can fluctuate, but it is always restored to equilibrium. 

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Crypto hacking is inevitable

Cryptocurrency is a decentralized digital currency that can be used almost anywhere. But now, more than ever before, researchers are uncovering new threats to cryptocurrency and its users. In an age of digital disruption, governments are beefing up security measures on platforms like online payment services, online storage services and online storage solutions. Users of these services have access to sensitive data about their personal details, likes, and dislikes at any given moment. Users need to adopt new user-friendly solutions to keep this information safe and secure. Cryptocurrency is the perfect example of this: it’s fast, secure, anonymous and untraceable. However, unlike traditional finance where ciphers run dry with every new breach or cyberattack, cryptos are yet to face a set of new challenges that warrant further study and research. Current hacking events of the blockchain challenge the possible future of digital finance and are viable for everyone to use without worrying about your assets.

What is crypto hacking?

Contrary to popular belief, cryptocurrencies aren’t actually linked to any particular crime or security issue. These digital currency assets are simply an alternative form of money. Crypto hacking refers to unauthorized access to sensitive data through unauthorized means.

How to protect yourself against crypto hacking

Users need to be aware of their surroundings when shopping online and online banking. Make sure you understand your security and privacy controls, and consider including a strong password manager in your digital banking setup. Keep all sensitive data digital, and mark all printed documents and files as securely stored. And last but not least, be extra careful with your credit card and cash payments.

Steps to take when facing crypto hacking

For many, the most common first step into the world of cyber security is to thoroughly research and understand the threats that are facing your digital assets. This includes looking at the security on the fundamental knowledge of cryptography. No one should assume your invention of cryptography will be sustained in the long term without going through a public review process. Likely your invention will be broken by experts in no time.

Conclusion

Cryptocurrency is a high requirement of security. However, the issue for most people is do not understand cryptography. Currently, most cryptocurrencies will likely be hacked because of outdated cryptographical technology. 

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Ethics of Crypto

Is there an Ethics of Crypto in general? Probably not.

As digital currencies have widespread adoption, the financial and social benefits have grown steadily. Now, users of virtual currencies — like people who store their cash online — are also using them to buy and sell goods and services. In other words, the future of finance may be cryptocurrency trading. With that in mind, it’s important to understand the ethics of cryptocurrency. 

People are too distracted by the utility of cryptocurrency and forget about ethical behaviors. So why should we care anyway?

Cryptocurrencies are inherently untrustworthy and should be avoided at all costs

Many people today are unaware that cryptocurrencies can be used as a store of value. This means that people who hold cryptocurrencies can’t be held legally responsible for money being stolen or paid with stolen money. This can lead to banks and other financial institutions charging higher interest rates on loans or even closing the accounts of suspicious individuals. Even if a person holds a specific cryptocurrency, the risk of fraud and the stolen money is great. The same goes for someone trying to sell stolen money. Ensure that the person you’re dealing with is trustworthy and does their job well. Even if you have nothing but time, do your research, and don’t make rash decisions, cryptocurrencies could be very costly to trade. Investors should consider all this in light of whether or not they’re willing to put money in the cryptocurrency market. Is it even worth it to use cryptocurrency rather than the bank regulated by the government just because crypto has some speculative features to win the bank in the short term?

Even if you’re a cryptocurrency investor, you should still moderate your investment

As the power of the blockchain and digital currencies increases, so do the risks. Some of these risks are related to security issues and fraud, while others are related to the market itself. The general consensus is that volatility is a significant downside, particularly for institutional investors and money market managers. While some investment strategies aim to mitigate this volatility by maintaining long-term expectations, many traders are being left behind. A healthy amount of reserves should be kept in cash and other long-term assets to try and withstand spiking demand and price volatility. Some people also try to diversify their investments to avoid becoming too dependent on one basket. By keeping a mix of stocks, bonds, and commodities, this investor can try and avoid becoming too reliant on a single industry.

Cryptocurrency exchanges are rife with malicious intent

Some exchanges are just trying to make money. These exchanges are often led by nefarious characters looking to profit from trading cryptocurrencies with one another. When someone uses a bad or repackaged cryptocurrency on an exchange, the exchange staff can’t guarantee that the trade is legitimate. Some of the most popular exchanges in the world have been around for a long time. Their names elude us, as do the risks associated with using these exchanges. However, it’s important to remember that the industry has been around for a long time, and exchanges are just now becoming targets. But it does not mean exchanges carry out their responsibilities to protect users under any circumstances.

It’s impossible to know what will become of all the decentralized currencies

It’s easy to get excited about the idea of building and using decentralized applications on top of top-echelon blockchain systems. However, as we’ve known, the idea of building a decentralized applications platform is relatively new and unsecured. Decentralized applications are still in their infancy, and they’re still far from being able to scale. Even now, developers manage to build applications that support more than just the blockchain. Decentralized applications can run on any computer that has internet connection and has a tech-savvy assistant. However, because there is no ethics discussion on any of the new technology, there is no comprehensive protections that likely to protect users.

Decentralized platforms offer anonymity

As the number of people attempting to access the internet via mobile device grows, so does the number of activities associated with them. These activities can range from extra commerce and restaurant booking to social media and banking. These apps only provide you with a single source of information — the underlying blockchain. You can’t trust any of these platforms to keep your data secure. You can only assume that they’ll be reliable and prompt in providing the necessary information. 

There is a growing market for services that help users purchase and store virtual currency

There are a number of different ways to purchase and store virtual currency. Some are decentralized, some are through an exchange, and some are through a wallet. While it’s important to have an option that lets you purchase virtual currency with cash, it’s also critical that the option works with high-quality encryption. This is because looking over someone else’s shoulder while they’re trying to carry out a purchase can lead to very sensitive information getting exposed. Some of the most popular wallet companies in the world come with comprehensive Anti-Spoofing technology built into the wallets. This technology prevents any portion of the wallet or blockchain associated with any single user or account from being seen or touched by another user.

The Bottom Line

As the power of the blockchain and digital currencies grows, so do the risks. Some of these risks are related to security issues and fraud, while others are related to the market itself. The general consensus is that volatility is a significant downside, particularly for institutional investors and money market managers. Investors should consider all this in the light of whether or not they’re willing to put money in the cryptocurrency market. As the power of the blockchain and digital currencies grows, so does the risks. Some of these risks are related to security issues and fraud, while others are related to the market itself. The general consensus is that volatility is a significant downside, particularly for institutional investors and money market managers. Investors should consider all this in the light of whether or not they’re willing to put money in the cryptocurrency market. It’s easy to get excited about the idea of building and using a decentralized applications platform on top of top-echelon blockchain systems. However, lack of ethics discussion may drag the technology backward rather than forward thinking.

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Self-proclaimed Bitcoin creator Craig S. Wright won the legal case for £1

Self-proclaimed Bitcoin creator Craig S. Wright won the legal case for £1. Now, a former Bitcoin user and now self-proclaimed Bitcoin creator, Craig S. Wright, has been awarded a legal claim against Peter McMcormack in damages. Wright brought the case against the Peter McMcormack accused Wright of fraud and a moron. Today, the court ruled in Wright’s favor. The case eventually concluded below:

The judge said that Wright had pushed “a deliberately false case” with “deliberately false evidence” and would therefore only receive a nominal £1 sum.

What is the legal background to Craig Wright, self-proclaimed Bitcoin creator?

On 26 February 2017, Craig Wright, an Australian computer scientist, and businessman. He has been self-proclaimed Satoshi Nakamoto since 2015. 

The Dave Kleiman Case

In February 2018, the estate of Dave Kleiman initiated a lawsuit against Wright in Florida and accused Wright defrauded Kleiman, a business partner, of Bitcoin intellectual property rights and with damages of $5.2B compensation. The case eventually concluded that Wright would pay Dave Kleiman Estate 100M, and he would grant the title of “Satoshi Nakamoto”.

Bitcoin and blockchain

On 23 November 2017, the New York Times published a profile of Craig Wright in which he was described as an “entrepreneur and Bitcoin visionary.” The article discussed how in the early 2000s, when he was an investment advisor at a brokerage firm based in New York, he became interested in digital currencies such as Bitcoin and started to trade them in his spare time. In the article, it was also mentioned that he met Varun Gupta, the co-founder of Bitfinex, in a Las Vegas hotel room in 2013, where they discussed ideas and plans for their exchange. But they were unaware that they were going to be sued by former employees of Bitfinex, a firm that had been established in 2011.

Self-described Bitcoin creator vindicated by court order

On 7 March 2018, the court ruled in favor of Craig Wright, the former employee of Bitfinex who had been found guilty of money laundering and insider trading. The ruling affirmed that Wright was actually the true owner of the assets of Bitfinex, and that the assets had been frozen following the company’s acquisition by Bitcoin in 2017. Wright’s lawyers said that he could not access the funds associated with his Bitcoin account and that he could not withdraw funds from it. But the court ruling also said that the funds could be withdrawn from a bank account in India, where his parents lived.

Anyone cares if Wright is Satoshi

No one cares who Satoshi is, but Bitcoin empowers everyone to become Satoshi. So people will remember the Satoshi spirit who is anonymously to create something that impacts the world rather than the title to claim as a creator of Bitcoin.

Conclusion

The decision by the New York Times to report on Craig Wright as an “entrepreneur and Bitcoin visionary” served as the basis for his successful defamation lawsuit against the firms that had been his employers at the time of his arrest. A divided court could have easily denied the defamation claim, ruling that a person cannot be held responsible for what others have said. But the court ruling in favor of Craig Wright was important, as it validated his reputation as an entrepreneur who had made significant contributions to the blockchain and cryptocurrency market. Still, it would be remiss if we didn’t do the bare minimum to recognize Craig Wright’s contribution to the field of blockchain and cryptocurrency over the past few years. In addition to his role as a co-founder of Bitwise, the founder of Cryptonote and the creator of several decentralized apps, there is little that we can do to recognize his role in the development of the blockchain and cryptocurrency space. We can only acknowledge that he is one of the most important members of the field and that his contributions will be greatly appreciated.

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What Metaverse?!

Mark Zuckerberg may be right about the future of the Metaverse, but his company went a completely wrong way to define the path of his vision of the future.

What is a Metaverse?

There is no clear definition of what a Metaverse is. It instead puts what is tending and combine all in one.

It has become a buzzword after all. 

One popular interpretation of the Metaverse is from Neal Stephenson in his 1992 novel “Snow Crash” with three elements to create a virtual-reality world: a VR interface, digital ownership, and avatars. 

– VR interface: it gives your visual reality feeling

– Digital ownership: it gives your a sense to own virtual goods

– Avatar: it gives your identity that live in the virtual world

It gives people a sense to live, work, play, shop, or socialize. 

This is not a new idea. Second Life, an online role-playing game, offers a textbook example of how Metaverse would play out in the early 2000s. 

Then Metaverse makes your life becomes gaming. 

Many questions will arise. 

– Why do you want to have to live a virtual life if you got a physical one?

– If the virtual world is unlimited resources, why do we want to limit the resources artificially?

– Does the virtual work better than the physical one?

– Can you really live a second life without depending on the first life?

Web3 to Blockchain

After social media ruins the internet, we are heading into the post-social media internet phase. With the advancement of virtual technology from Augmented Reality (AR), Mixed Reality (MR) to Virtual Reality (VR), we will have another world that somewhat immersive people into the virtual world. 

Social media has separated people into strict categories, will Metaverse push people further into their own shells?

Will it be possible to show people what they only want to see and eventually control reality?

Web3 and blockchain may offer the next generation of the internet, but does such technology resolve what social media brought us at the first place?

Lack of philosophical discussion about the Metaverse

The virtual world used to separate from the physical world, but the boundary became blurring.  

When Rene Descartes stated, “Cogito, ergo sum to,” it built a foundation of knowledge.   

Do we have a fundamental idea about the Metaverse? What can Metaverse do to help society without ruining our current living one? Do we really need a Metaverse?

In Conclusion

Unless we can continue seeking the answer to What a Metaverse is, we cannot force others to follow our own vision and let them walk into our desires.

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How high leverage crypto lending market collapses

As the number of crypto lending projects increases, the demand for high-quality banks in this space has also increased. However, the current market is in a tailspin and not much can be done about it. Like other asset markets, such as stock and bond trading or real estate development, the crypto lending market faces multiple headwinds: low-interest rates, rising competition, and regulatory uncertainty. Traditional lenders are unwilling to offer crypto loans at competitive rates or as a package deal. Even if they did deliver it at competitive rates, many others would reject it out of hand. This leaves traditional financial institutions as the only alternative left. To avoid becoming an antiquated sector that cannot support itself, we need more than just more conventional lenders. There needs to be a higher level of leverage on offer so that creative digital assets can become its main attraction instead of simply being another commodity – another loan option. Lenders with leveraged portfolios are necessary even if they do not have the best business practices (e.g., investment vehicles). Weakening the competition will only make things harder for traditional players who have grown accustomed to buying their way into certain industries (e.g., oil) or using other conventional means to reach their goals (e.g., banking).

What is the current crypto lending market worth?

There are over 1,000 crypto lending projects in the market. Some of them have raised more money than others and it is not unusual for projects to generate more than the sum of their (usually smaller) parts. However, the total number of lenders in the market would not be significant without the adoption of blockchain and the payment network it creates. However, the market suddenly collapses in early 2022 due to the market downturn. It makes many people wonder why the market is so fragile. 

The demand for high quality digital banks

New digital banks are opening their doors worldwide and offering loans to customers in various forms. Some common forms of lending include cash-out refinance, termite and mortgage loan, and money market funds. Other assets usually secure these loans rather than security-rated assets. They may offer higher interest payments but the risk of default is also very high.

How big of an impact will the current market have on business confidence?

The amount of money raised through these projects can greatly affect a lender’s business. If the number of lenders increases and the number of projects increases, then the number of do-it-your-self (DIY) loans will increase as well. However, the most significant impact will be on the confidence of the banks in the industry. This will have a dramatic and far-reaching impact on the entire commodities and financial services industry. There will be a loss of vendor relationships, reduced transparency, and a decline in investment confidence in banks. These will hurt all parties, from the lender company to the government. One example is the lending company Vauld. Unlike traditional lending services, crypto lending solely depends on the algorithm to determine the opportunities. It works when the market goes up but it does not work when the market goes down. When valuation goes up, the interest payments are worth less than the company holds. However, the interest payment is worth more than the company has when the market goes down. He suddenly reversed the market, putting the company out of business immediately.

What is next for crypto lending in terms of transparency and regulation?

The crypto lending market is small and has little industry publicity, meaning there is not much regulation or regulation-like regulation that could be applied. However, it would be wise to consider this market a low-hanging fruit, as most regulatory and legal developments occur very slowly in a sector that experiences massive fluctuations in demand and supply.

Bottom line

The demand for high-quality banks in this market is very large. There will be no significant movement in the market with the advent of decentralized, blockchain-based ledgers. And with the advent of more blockchain-based assets, demand for high-quality banks will continue to grow. However, a major event like a government ban on virtual currency will spark a meaningful change in the market. There is little chance of this happening soon. With so much disruption and uncertainty in this sector, it is unrealistic to predict the future of bankine. But one thing is for sure: the use of blockchain in banking will become more common, if not inevitable, in the near future.

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Photo by Jason Pofahl on Unsplash