Are we in a recession? Well, it depends on who you are talking to.
The traditional view is when there are two consecutive quarters of decline in a country’s real gross domestic product is commonly used as a practical definition of a recession.
But, the definition of a recession has started changing.
Nowadays, we cannot agree on the definition anymore. Everything is open and up to debate.
All indicators show that we are heading or have already in a recession.
From the government bailout companies to not allowing a recession anymore in the economy, where are we heading if there is no clear guidance on the economy from the government?
So, we are technically in a recession, but we are not in a recession.
And we are heading into an even worse economic cycle:
But that is okay, and we can redefine everything from now on.
Here is the question about a recession, is a recession man-made or a natural process?
If a recession is caused by humans and is a man-made event, the government has the right to change the definition. Since the government has been created collectively to represent the majority of the people in the nation, they have a right as a creator of the collective force to change the definition of the recession.
What if a recession is a part of nature?
Then refusing a recession is a violation of natural law.
I think a recession is man-made, and it is okay for the government to change the definition if they want to. They have to convince citizens that the change is acceptable.
So, we are in a recession according to the traditional definition, but we may not yet be in the recession if the broader definition claims “a significant decline in economic activity that is spread across the economy and that lasts more than a few months.”
At the end of the day, it becomes a political debate that does not affect people’s daily lives.
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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.
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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The Froots Are Here and Moving Fast
I was surfing through transactions on the Solana blockchain yesterday, and I noticed a large volume moving on Froots NFTs and decided to check things out.
Froots NFTs sold out fast, and the floor started running up. The mint price started at 2.75 Sol on July 21st. When I saw the project and could get in yesterday, the floor was sitting at 4. Last night and today, the Floor has been floating around 5.5 to 6.5.
What are Froots?
Froots is a collection of 7,777 fruit NFTs.
Froots, also known as ‘The Vibers of Solana’ is a community driven project of cute froots that aims to spread good vibes and provide its holders with great opportunities, through their different ventures. With Froots, we want to experiment and set a precedent for what can be done between Web2, IRL businesses and Web3. While our main goal is to develop multiple subsidiaries in various industries ranging from F&B, Merch, Books,etc… We will always put our community first and make sure that we’re always innovating and keeping it fun.Froots
Let’s Breakdown the Froots NFT Project
The project appears to be a fast-release project. A short roadmap section briefly discovers the project and utilities of the NFTs. Froots announced that only 3 of the 6 NFT utilities had been released the other 3 are still a surprise.
What is Driving the Popularity?
It’s all about the community. The Froots has a fantastic community helping to push this project to the top of Solana.
The Road Map
Froots is a multi-venture brand where holders of the genesis NFT collection will be benefiting from each ventures of the Froots umbrella, through our rev-share program. The first subsidiary will be a juices/smoothies company, and the 2nd one is a merch service venture to help projects develop high quality merch that suits their needs and brand image. We have a lot more in stock but we’d rather overdeliver than overpromise, however we can tell you that the future of Froots will include: Merch, 1/1 Charity Auctions, Web 2 + Web 3 partnerships, Lore related projects, Cute art… and VIBES!https://frootsnft.com/
Suggested Read: The Art Collective Multichain DAO by Metazens – Cryptobite
My Thoughts On Froots NFT Solana Project
I had to jump in on the rise up and make a little profit at least. I love the idea behind it and am curious to see what the other utilities will be. I will also hold at least one just to see where the project goes. They make some cool PFPs for Social Media when all else fails.
The dollar is ever stronger
The global financial crisis has permanently altered the face of finance. When the global financial crisis hit in 2008, many financial institutions, including banks and credit card issuers, were hurt. But even though many banks are still reeling from the impact of the crisis, it’s unknown how much longer they’ll be able to operate normally. Unfortunately, the global financial turmoil has also proven to be a blessing in disguise for products like debt bonds and Bitcoin. While it was previously thought that these two digital currencies would never take off as a medium of exchange, both have grown steadily throughout this past year, and their increasing use as an alternative to traditional money poses a growing threat to central bank control over these currencies. In this article, we discuss the risks posed by introducing Bitcoin and other digital currencies into everyday life, their potential benefits for institutional investors and industry players, and how governments worldwide are working to understand their use cases.
What is Bitcoin?
The all-new Bitcoin is a decentralized digital currency that uses online technology to store data and execute transactions. It is not intended as an actual physical object but as an electronic digital currency that uses algorithms to secure transactions. The blockchain, the consensus mechanism behind the network, provides an architecture that enables users to record and verify transactions without any central authority having control over the data. But Bitcoin is not an ideal currency to use because of the complexity of using the wallet for the general public and the unstable price, which prevents users from spending rather than holding.
How Does Bitcoin Work?
One of the most critical roles that banks and financial institutions play is to issue money and conduct business through bitcoin-based payment systems. As of now, only a select group of banks and financial institutions in the United States and Europe accept bitcoin as an option for payments. Although there is no central bank for Bitcoin, whales are influencing the market, which is volatile. In addition, using Bitcoin is prone to scams because there are more scamming online that are likely to bait users into transferring their Bitcoin without the possibility to reverse the transactions.
Benefits of Bitcoin as an Alternative to Money?
At its core, money is a transaction between people. It’s the act of adding money to another account or the flow of money from one account to another. In the case of the financial crisis, it was the adoption of Bitcoin that changed the landscape. As the first digital currency to gain widespread popularity, it has been used to replace cash as the medium of exchange. Now, more than ever, people need access to digital payment options like debit cards, credit cards, and other cash-based payment systems. However, cryptocurrency usage can increase when the dollar is more robust due to cheaper transactions and lower prices.
Strong Dollar Environment
If you live in a country with the dollar as your fiat currency, you are the lucky dog! The strong dollar will deleverage the debt faster and shorter the maturity of debt. Moreover, since all assets hedge dollar, the stronger the dollar has, the lower the asset valuation.
Risks of the Introduction of Bitcoin and Other Digital Currencies into Everyday Life
Beyond the obvious threat of being banned by every central bank in the world as well as the increased risk of identity theft and other security issues as a result of digital payments, it is also important to note that the introduction of new technologies and industries poses new challenges that need to be addressed by both business and government. Some of these challenges include creating an ecosystem that can support both new technologies and old ideals, maintaining the necessary level of technology infrastructure to support both new technologies as well as existing ideas, and making sure those new technologies are used in a meaningful way.
How does a business case for regulating and controlling digital currencies look like?
It’s important to remember that this is an emerging industry that, until now, has been treated as off-the-shelf technology. Therefore, regulatory bodies need to understand how it works, its main ideas, and its main risks so they can determine whether or not to regulate or regulate appropriately. Regulators need to protect users through regulations but without interfering with the crypto’s growth technology.
The global financial crisis will change the landscape of asset valuation, and investors will have to re-evaluate their strategy. Likewise, the institutions will have to change their old way of doing business and adapt to the new ideas of the future asset class. Otherwise, each crisis will likely screen out the weaker assets and make people suffer from the loss. It is also an opportunity to see how Crypto can weather through the financial uncertainty into the future and eventually become a leading financial asset through the upcoming digital revolution.
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