Even if you are only marginally interested in crypto, you are likely aware of the events of the past few weeks in which the stablecoin “UST” lost its peg, resulting in a “death spiral” for both UST and the LUNA token, which is the centerpiece of the Terra ecosystem. For many in the crypto space, ...more
On March 9th, President Biden signed his “Executive Order on Ensuring Responsible Development of Digital Assets.” This order had been anticipated for several weeks, and while highly anticipated within the crypto community, the order itself is short on specifics, long on bureaucratic jargon, and therefore subject to speculation by almost anyone who takes the time ...more
For those new to the cryptocurrency market, stablecoins represent one of the more difficult aspects to understand. The reality of this point is further cemented when one has come into crypto because of Bitcoin or some other specific project or protocol that potentially serves as a universal ledger or universal unit of account. While the ...more
Gold and Bitcoin are fungible, durable, portable, divisible, & scarce. Both have limited acceptance today: there are few goods & services you can buy directly with gold or bitcoin.
But Bitcoin has six advantages over gold:
1: Bitcoin is far more portable than gold. You can send it anywhere in the world instantly for a trivial fee.
2: Bitcoin transactions ...more
Before the world switched to a fiat monetary system, people who wanted to build wealth kept their savings in a bank. Interest rates tended to equal the average rate of profit, which was enough for all but a small minority of professional investors and entrepreneurs.
This all changed with the move to a fiat monetary system ...more
To the outsider, crypto enthusiasts largely look like a bunch of libertarian leaning, wanna be economists who appear to have a major axe to grind with the financial system as we’ve known it for the past 80 years or so. While there is some truth to this broad brush approach at generalizing a very large ...more
You are undoubtedly familiar with the idea of a “Trojan Horse,” an idiom derived from the Trojan War of Homer's Iliad. A large, hollow, wooden horse is left behind by the Greeks after their supposed failure to take the city of Troy. The Trojans take the horse back inside their city’s walls, and that night, ...more
Even casual crypto observers are aware of the dramatic downward price action across the crypto space over the past few weeks. This price action has market participants weighing in with opinions regarding where the crypto market stands: on the cusp of a short consolidation and follow-on breakout, or has the next cyclical crypto winter made ...more
While Bitcoin is undoubtedly the most recognized crypto currency in the world, there are literally thousands of other cryptos in existence. While we tend to call everything in the crypto space “cryptocurrencies”, this is misleading because the only thing these digital assets have in common is that they have issued tokens that power their own ...more
If Bitcoin and other cryptocurrencies were to disappear tomorrow, what legacy would they leave behind?
I can think of three main impacts:
First, Bitcoin raised awareness of the flaws in fiat money, the superiority of sound money, and the potential of people to trade with each other without third-party intermediaries.
Second, Bitcoin has provided a life raft to ...more