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Generational Theory and The Historical Significance of Bitcoin

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Generational Theory and The Historical Significance of Bitcoin

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In a recent piece for CNN, journalist Kaya Yurleff made a rather startling announcement: emojis are dead…well, more or less. Says who? Generation Z, that’s who. Colloquially known as zoomers, these trendsetters were born between the years of 1996 and 2010. Everything lives, and everything dies. And emojis, we’re told, are on the way out. Times like these call for a yellow face sporting a slight frown, shedding a single, blue tear from one eye. Zoomers, however, would not approve.

Ostensibly, what we are witnessing here is the exorcism of emojis from society. On closer inspection, though, what we’re really witnessing is a generational shift, a shift in conceptual frameworks and cultural narratives. Can such shifts be used to explain bitcoin’s prominence?

In 1981, William Strauss and Neil Howe developed the Strauss–Howe generational theory. Every 25 years, generation demands change; fresh social, political, and economic norms are created, often radically different from those that came before them. Established institutions are attacked and weakened, all in the name of freedom. The generation demanding change can be seen as cultural architects; in order to build, however, they must first destroy.

1996, the year these architects first burst onto the scene, also happened to be the same year that internet banking went mainstream. The move to online financing revolutionized the way we do business. In fact, although the internet was available to the public in 1991, the world had to wait until 1996 for the likes of Hotmail and Yahoo Mail, which subsequently opened the door to Google and Gmail. The rest, as they say, is history.

1996 was also the year Motorola gifted us with the StarTAC, the world’s first-ever flip phone. And yes, for any zoomers reading this, flip phones were revolutionary.

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A quarter of a century before flip phones blew our minds, the first-ever facelift took place. That same year, with the abolishment of the gold standard, President Nixon performed some cosmetic surgery of his own. His client? The US dollar. The results? Not so pretty. 

This was also the year that physics went “mainstream,” firmly establishing itself as the dominant science. The inimitable Stephen Hawking was busy developing his theories of black holes

Meanwhile, the Soviet Union launched the world’s first space station program.

25 years before that, in the mid-1940s, WW2 had just ended. The world, battered and bruised, entered a phase of healing and restructuring. The International Monetary Fund (IMF) was established, as were the independent states of Syria and Lebanon. 25 years before that, “The Jazz Age” was born. Babe Ruth began playing for the New York Yankees. The Irish War of Independence was taking place. The Weimar Republic was aggressively flirting with hyperinflation. Venezuela became the world’s second-largest oil-producing nation.

In 2021, a century later, the world is an incredibly different place. Venezuela is a mess. Syria and Lebanon are, from humanitarian and economical perspectives, disaster zones. The IMF, in many ways, is also a sort of disaster zone.

Venezuela, Syria, Lebanon, and the IMF are symbolic of the old system: badly run nations and institutions, ran by ill-equipped, ill-informed individuals. 

It’s easy to see why digital natives of today have little interest in the old system. Why would they? More importantly, why should they?

While fiat currencies continue to lose their power, the king of cryptocurrencies continues to soar. On Friday, February 19th, bitcoin’s market value hit $1 trillion. Now, the world wonders if the world’s first example of ‘digital gold’ can overtake Alphabet Inc., currently valued at $1.43 trillion? The answer appears to be yes.

A digital future

The old system represents brick and mortar buildings, physical currencies, and face-to-face interactions. The pandemic, however, has resulted in an almost global shift to online commerce. Consumers have been nudged – or quarantined – away from traditional coins and bills. Things, we’re told, will never be the same. If that warning applies to physical currencies, perhaps that’s a good thing.

In 2019, zoomers became the largest generation, constituting close to 33% of the global population. Millennials are no longer top dogs. Although a share of zoomers lacks the finances to invest heavily in crypto, they’re excited by the possibilities that Bitcoin presents.

Noelle Acheson, in a brilliantly written piece for Coindesk, notes how zoomers “will see nothing strange in allocating their savings to assets via swipes on their phones (or movements of their headsets or digital glasses, who knows). It is unlikely they will find the fragmented nature of crypto markets alarming.” The author believes that “the creativity of many crypto-asset products on the market today could appeal to their strong sense of individualism.”

Millennials are inherently distrustful of centralized institutions. Why would anyone assume that zoomers, who tend to be even more digitally savvy than Millennials, have any interest in traditional, centralized models of governance and finance?

As Acheson notes, zoomers “will emerge into a market in which traditional investment standards no longer apply, and for which the word “unprecedented” has lost most of its meaning.”

As we see with emojis, a linguistic shift is emerging. This shift may very well prove to be symptomatic of a broader shift in society. In fact, we may be witnessing the beginning of a crypto-infused revolution. Does a digital future, free from intermediaries like central banks, await us? If zoomers have their way, brick and mortar institutions could become a thing of the past.


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DISCLAIMER Read More

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

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Source: https://zycrypto.com/generational-theory-and-the-historical-significance-of-bitcoin/

Blockchain

Bitcoin Bull Mike Novogratz Predicts Existential Crisis Unless the US Creates a Digital Dollar

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Mike Novogratz, a veteran investor, and a huge Bitcoin supporter noted the U.S. is currently in a good economic position. Still, the nation can face a major competitive disadvantage unless it engineers a digital dollar soon.

The Importance Of An E-Dollar

Novogratz, chief executive of digital merchant bank Galaxy Digital GLXY, underlined the value that a digital dollar could bring to the US. In a Friday interview with MarketWatch, he stated:

”To me it is an existential crisis, we need a digital dollar.”

Furthermore, the investor expressed his view over the current COVID pandemic and the negative impact on the U.S. market and the world, in general. He referred to the trillions of dollars of monetary and fiscal spending done to help eliminate the worst of the economic aftershocks the disease caused:

”If our fiscal and monetary policy starts looking like it’s from a Banana Republic…you are going to run into some Minsky moment where confidence breaks down.”

With his statement, Mike Novogratz referenced Hyman Minsky, who exposed a view in the recent past that a period of distortions in the financial system eventually ends very badly.


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The existence of a digital dollar sounds even more important after some stock-market investors have been warning about a surge in US inflation in the past weeks.

The Competition With China

During the interview, Novgorotz claimed that while in the U.S., the development of an e-dollar is still under question and researches, China has fired the first salvo on the digital currency front.

The biggest economy in Asia conveys great support to its digital yuan. According to some experts in the field, its new currency is a weapon that the country can use to compete with the U.S. and other developed economies.

As CryptoPotato recently reported, PayPal CEO Peter Thiel said that Bitcoin could be used as a Chinese financial weapon against the U.S.

In the meantime, Novogratz said that there is ”zero evidence of the Chinese government buying Bitcoin” much less weaponizing it, referring to the comments made by Peter Thiel:

”Sometimes he likes to say things that are provocative.”

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Source: https://cryptopotato.com/bitcoin-bull-mike-novogratz-predicts-existential-crisis-unless-the-us-creates-a-digital-dollar/

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Blockchain

Ripple becomes tidal wave, leads weekend pump and notches legal victories

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Amid a weekend pump carrying multiple cryptocurrencies higher, Ripple’s XRP looks to be leading the way with a push as high as 30% on the daily — carried on the back of a string of legal victories and rumors of relisting at some exchanges. 

Where Bitcoin and Ethereum are up merely 2.7% and 3.4% respectively on the day, XRP climbed to $1.36 before retreating to $1.32, where it sits at the time of publication. The digital currency is now up 111% on a 7 day basis, and a staggering 544% on the year. The recent push has also buoyed XRP back into the top 10 cryptocurrencies by marketcap, behind only BTC, ETH, and BNB at #4.

The rally flies in the face of a lawsuit from the Securities and Exchange Commission, which charges that XRP’s $1.3 billion ICO was an “unregistered securities offering.” The news led multiple exchanges to delist the currency, and XRP lost its place as the 3rd largest currency by marketcap, at time looking as if it would even fall out of the top ten. 

The bad news for XRP didn’t stop with the SEC, either. In March Ripple CEO Brad Garlinghouse announced that the company would be “winding down” its relationship with Moneygram — a once highly-touted partnership that investors often pointed to as proof of the digital currency being on a path towards becoming “the standard” for payments and settlement.

Despite the deluge of negative headlines, it appears all buyers needed was a small ray of hope to jump back in — and they’ve gotten exactly that. Ripple lawyers have notched two victories in their legal battle against the SEC, including winning access to internal SEC discussion history regarding cryptocurrencies, and a court denied the SEC the ability to disclose the financial records of two Ripple execs, including Garlinghouse.

Ripple executives themselves seem heartened by the news, with CTO David Schwartz saying the US isn’t “prepared” to regulate cryptocurrencies (a possible dig at the ongoing legal proceedings).

All in all, it’s just another week for one of the most controversial cryptocurrencies in the space.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cointelegraph.com/news/ripple-becomes-tidal-wave-leads-weekend-pump-and-notches-legal-victories

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Blockchain

Why this OlympusDAO’s product could be amongst DeFi most lucrative

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Taking the market by storm, OlympusDAO’s native OHM is up 95.8% this week alone and 31.1% in the past two weeks. At the time of writing, OHM is trading at $812,76 with 7.3% profits in the 24-hour chart.

With a market cap of just $68 million, OlympusDAO might have gone unnoticed by many investors. However, it has a mechanism called Bonds which promises to be one most important and lucrative in the DeFi sector.

According to research firm Messari, this protocol is attempting to create a stable currency backing every OHM with DAI and OHM-DAI. The objective is to maintain a “fundamental check on inflation” and a currency with an undiluted purchasing power.

Unlike Tether and other stablecoins, OHM is not pegged to any other asset. Its stability is achieved via the DAO (Decentralized Autonomous Organization) when it alters variables to obtain more profitability for stakers.

This is done via the sales contract connected to the protocol’s treasury and a liquidity pool (OMH-DAI) on decentralized exchange Sushiswap, as shown below. Messari explains:

When OHM trades above 1 DAI, the protocol mints and sells new OHM. When OHM trades below 1 DAI, the protocol buys back and burns OHM. In each case the protocol makes a profit. Olympus DAO distributes these profits 90% to OHM stakers pro rata and 10% to a DAO.

OlympusDAO OHM
Source: Messari

How OlympusDAO’s bonds operate

The Bonds are a treasury component to get liquidity with it users can trade Stake Liquidity Provider tokens to get OHM directly with the protocol, as an OlympusDAO developer explained.

Once the trade is completed there is a vesting schedule of 5 days. During this time, the user can redeem the tokens but has incentives to get them at a discount. The latter is determined by the number of bonds in the protocol, more bonds are equal to a lower discount.

Via this mechanism, as the developer said, OlympusDAO restrains its own growth, to have become “steadier”.

The liquidity from a bond is locked in the treasury and used to back new $OHM. That liquidity now belongs to the market and, by extension, the token holders. The more liquidity the protocol builds up, the more confident holders can feel.

The users are basically contributing to OlympusDAO by adding liquidity. In retribution, the user gets a reward in OHM at a much cheaper price during a specific period. That way, both the user and the protocol can benefit.

OlympusDAO offers LP a variety of strategies around OHM which they can leverage to obtain a bigger profit than on the spot market. The developer claims:

All of this serves to create a long-term, sustainable bootstrapping mechanism for the protocol, with participants as the main beneficiaries. A good system shouldn’t offer one opportunity to “make it”; it should offer them in perpetuity with diminishing returns. This is how you produce wealth; slowly, through compounding gains.

Ethereum is trading at $2096,58 with a 1.2% profit in the 24-hour chart, after dropping from its ATH at $2,198.

OlympusDAO OHM Ethereum ETHUSD
ETH with small profits in the 24-hour chart. Source: ETHUSD Tradingview

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.newsbtc.com/news/why-this-olympusdaos-product-could-be-amongst-defi-most-lucrative/

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