Connect with us

Blockchain

Why Most Educated People Don’t Understand Bitcoin

Misir Mahmudov, a widely-followed and respectedRead More →

The post Why Most Educated People Don’t Understand Bitcoin appeared first on Crypto Core Media.

Published

on

Misir Mahmudov, a widely-followed and respected bitcoin (BTC) analyst, has argued that “most educated people fail to appreciate bitcoin because they only specialize in one field.” In order to truly understand how bitcoin works, Mahmudov, a financial economics student at Columbia University, recommends having some grasp of basic computer science and economics concepts.

He has also suggested learning more about cryptography, game theory, central banking, psychology, and distributed systems. Having some idea about these fields, Mahmudov notes, should help people in truly appreciating bitcoin and what it aims to offer. While pursuing their undergraduate studies, most people usually choose one or two main areas of focus such as economics, business studies, or a more technical discipline such as computer or mechanical engineering.

Those who are more interested in gaining a deeper understanding of how the human mind works, or how nation states are formed, might decide to major in social sciences such as psychology, sociology, and international politics. However, it is difficult, if not impossible, to become a master of all these subjects. But that may not be necessary in order to understand why Bitcoin is one of the most important inventions in modern history. 

First proposed in a whitepaper published in November 2008 by its pseudonymous creator, Satoshi Nakamoto, the Bitcoin protocol specifies how an electronic peer-to-peer (P2P) cash system should work. For the first time, modern cryptographic techniques were applied to create what’s now a multi-billion dollar experiment in monetary theory. 

Understanding The Importance Of Purchasing Power And Deflationary Assets

Unlike fiat currencies, which are inflationary as central banks can print an unlimited amount of paper money, there can never exist more than 21 million bitcoins. Being able to understand the implications of this when it comes to purchasing power requires some research into the various problems related to the fiat-based currency system. In countries like Zimbabwe and Venezuela, the national currency has become practically worthless because it’s being created and controlled by a poorly managed centralized bank. Mismanagement of a nation’s money system by a single entity has led to hyperinflation in several areas of the world, which has made the cost of acquiring basic goods and services practically unattainable for the millions of citizens in these developing countries. 

Acquiring The Background Necessary To Understand Arguments About Bitcoin

While prominent economists such as NYU professor, Dr. Nouriel Roubini, have argued that cryptocurrencies will not be successful in the long-term, there are other well-known economists such as Dr. Saifedean Ammous who firmly believe that Bitcoin’s decentralized value transfer system is a superior form of money. Although we may not agree with all the viewpoints expressed by Roubini or Ammous, our ability to interpret and analyze their arguments about decentralized cryptocurrencies would improve if we were more familiar with economic theories.

With Bitcoin being the first deflationary asset that has been adopted at a relatively large scale, the concept of scarcity and how it relates to an asset’s ability to become a long-term store-of-value (SoV) is perhaps best understood and articulated by former Google engineer, Vijay Boyapati. According to Boyapati, who’s known for his convincing arguments about why the world’s most dominant cryptocurrency will become a great SoV, Bitcoin has “never been useful as a medium-of-exchange (MoE) because the opportunity cost of using it as such is huge. The only people who can stomach that cost are people for whom the transaction cost of not using Bitcoin is even bigger than the opportunity cost (i.e., illicit market trades).”

Understanding Bitcoin At The Psychological Level

Although Boyapati appears to have a professional and academic background only in mathematics and computer science (as detailed in his LinkedIn profile), he has been able understand how and why Bitcoin could evolve into a legitimate currency and a globally recognized asset. As he has explained using many different examples and scenarios, Bitcoin would have to work effectively as a unit of account, MoE, and a SoV in order to become a currency that is widely accepted by merchants worldwide. 

In addition to involving concepts from economics and technical disciplines such as computer science, Bitcoin has to be understood at the psychological level. Before a currency or asset becomes widely accepted, people need to feel comfortable using it. The more confident people are about something, the more receptive they will be towards (at least) trying it, in order to determine whether it will suit them or work for them. 

In places where the country’s citizens have lost trust in the national currency and financial system due to corruption, it will become increasingly difficult for the same centralized institutions to regain the same level of trust they once took for granted. Because decentralized currencies like Bitcoin are designed to minimize trust, as they don’t require intermediaries to settle transactions, it can be challenging at first to become comfortable with this idea. 

Becoming Comfortable Conducting Transactions Without Intermediaries

Becoming familiar with how Bitcoin transactions are transparently recorded on block explorers can give people the confidence they need to start using blockchain-based currencies. Put simply, a blockchain is a type of data structure that allows multiple parties to engage in transactions without requiring a trusted intermediary. In most cases, a counterparty is also not needed when conducting cryptocurrency transactions. 

When the average person is first introduced to these crypto-related concepts, it can be challenging to fully understand how a monetary system like this could actually work. After carefully reviewing how a blockchain is designed to function, it becomes easier to start grasping how a decentralized digital currency such as Bitcoin can be reliably used to pay for goods and services. 

In the coming years, cryptocurrency-related technology is expected to improve and a larger percentage of the world’s population will likely begin using the internet to learn and engage in business activities. Many believe that Bitcoin and other decentralized coins and tokens may just become a widely-accepted part of Web 3.0, which is a term used to refer to new and evolving set of protocols that will be used to power the internet in the future.

Source: https://cryptocoremedia.com/why-most-educated-people-dont-understand-bitcoin/

Blockchain

Indian government cautious about crypto-adoption, CBDC is a possibility

Published

on

Indian traders and exchanges might be bullish about the crypto market, but the Indian  government doesn’t seem keen on rushing into the scene. At least, not until studying its homegrown fintech industry and the anti-Bitcoin protests in El Salvador.

Tracking global news

Indian finance minister Nirmala Sitharaman in a recent interview with Hindustan Times explained why the country seemed to be falling behind when it came to crypto adoption.

Though she admitted, El Salvador wasn’t “the best example,” Sitharaman said,

“You’d think common people don’t care about digital currency; but the public took to the streets against the move. It’s not a question of literacy or understanding – it’s also a question of to what extent this is a transparent currency; is it going to be a currency available for everyone?”

Sitharaman referred to CBDCs as a “legitimate” cryptocurrency and admitted there could be a “possibility,” in hat regard. She noted that India held the “strength of the technology” and acknowledged the need to formulate a Cabinet note. However, Sitharaman wondered if India was ready to follow El Salvador’s way.

Facts on the ground

Though accessibility is a pressing concern, more Indians have discovered crypto than perhaps expected.

Nischal Shetty, CEO of the Indian crypto exchange WazirX – a subsidiary of Binance Holdings – has stated that WazirX sign-ups from India’s tier-two and tier-three cities overtook those from tier-one cities this year. Even so, sign-ups from tier-one cities themselves saw a 2,375% rise. Furthermore, WazirX added one million users in April 2021 alone.

Adding to this, the cost of electricity and Internet data in India are relatively cheaper, which could boost both crypto trading and mining in the future. However, at the last count, there was only one Bitcoin ATM in the whole country.

As per data by Useful Tulips, which combined data from Paxful and LocalBitcoins, India saw transfers worth around $4,502,369 in the last two weeks.

Could anti-Bitcoin protests happen in India?

There is evidence to support both sides. India has a strong history of mass protests, with the farmers’ protests against the government’s agricultural laws being one such example. The 2016 demonetization of part of the country’s paper currency still haunts many, and Internet penetration is yet to cross 50%.

However, India also has the largest diaspora in the world, with approximately 18 million people living outside the country. Crypto innovation could lead to hundreds of millions of dollars being saved on remittance charges as money is sent across borders.

But for the time being, it seems India’s urban residents are more bullish about crypto than its government.

Where to Invest?

Subscribe to our newsletter

PlatoAi. Web3 Reimagined. Data Intelligence Amplified.

Click here to access.

Source: https://ambcrypto.com/indian-government-cautious-about-crypto-adoption-cbdc-is-a-possibility

Continue Reading

Blockchain

A Deep Dive Into The Bitcoin Wallets Of U.S Congress Members, And Why Bitcoiners Are Strongly Against Them

Published

on

A Deep Dive Into The Bitcoin Wallets Of U.S Congress Members, And Why Bitcoiners Are Strongly Against Them

Advertisement &  & 

Key takeaways

  • U.S. Congress’ split disposition towards cryptocurrencies raises concerns among market participants.
  • Bitcoin proponent, James Loop goes digging into the financial disclosures of Congress members.
  • His findings revealed only three Congress members have ever disclosed that they hold Bitcoin.

The United States is a key base for innovation and adoption in the cryptocurrency industry. According to data from Crunchbase, there are at least 1,135 organizations founded in the U.S. that provide various cryptocurrency-related services.

Despite the broad adoption of the asset class by the country’s citizens, the government is still divided on opinions about the growing cryptocurrency industry. This can be seen in the U.S. Congress where members of Congress are split between those who support and those who do not support Bitcoin, the most prominent cryptocurrency.

This polarised disposition of Congress has been a pain point for Bitcoiners. Bitcoin market participants have pointed out several issues that emanate from the fact that there are still members of Congress who have not shown themselves to fully understand Bitcoin.

The sentiment is that Congress members who do not fully understand the asset, having not used it, should not be responsible for making laws about it. Additionally, market participants also think it will be a conflict of interest if members of Congress who oppose Bitcoin are found to be holding Bitcoin or if those who support it do not own any. 

Advertisement &  & 

Jameson Lopp, the co-founder, and chief technology officer of Casa – a leading provider of Bitcoin self custody solutions, has gone digging into the United States Senate Financial Disclosures portal. The investigation was carried out to identify Congress members who have declared holdings of cryptocurrencies, and Bitcoin in particular, in their portfolios. 

His findings paint a dismal picture as the majority of the members of Congress who have been vocal in supporting Bitcoin have not held the asset at all according to their financial disclosures for the year ending 2020.

According to his findings, only 3 Congress members have disclosed that they own Bitcoin. The now-retired Representative Bob Goodlatte of Virginia was the first Congressman to disclose the ownership of Bitcoin, doing so in 2017 even before laws were passed to make disclosure mandatory. According to his disclosure, he owned between $1,000 and $15,000 of Bitcoin at the time.

Among currently seated Congress members, only Senators Cynthia Lummis and Pat Toomey have reported Bitcoin holdings in their portfolios in 2020. Senator  Lummis reported owning $100,000 – $250,000 of bitcoin in 2020 making up between 0.6% and 2.75% of her net worth. Similarly, Senator Pat Toomey reported purchasing $1,001 – $15,000 of GBTC in June 2021. The GBTC investment is between 0.01% and 0.7% of his net worth.

The sleuth however concedes that he did not have the time and resources to go through the financial disclosures of all 535 congressional members. Nonetheless, it is telling that of the ones he checked, even members of caucuses in Congress that are affiliated to cryptocurrency and members that have drafted bills that will provide clarity for the industry do not hold Bitcoin or other cryptocurrencies as their financial disclosures show.

PlatoAi. Web3 Reimagined. Data Intelligence Amplified.

Click here to access.

Source: https://zycrypto.com/a-deep-dive-into-the-bitcoin-wallets-of-u-s-congress-members-and-why-bitcoiners-are-strongly-against-them/

Continue Reading

Blockchain

China Again? — Why The Crypto Market Lost Over $300 Billion In Hours And What To Expect

Published

on

China Reemphasizes It's Not Yet Done With Clamping Down On Bitcoin

Advertisement &  & 

Key takeaways:

  • Crypto-market records over s$1 billion worth of Crypto liquidations in hours. 
  • Liquidated long positions significantly surpass shorts.
  • Fundamental factors pose serious threat to the market, but the road to recovery is near.

The crypto market has been hit with yet another massive liquidation. Within the last 24hrs, a whopping $1.03 billion worth of long and short positions have been liquidated, as reported by the aggregate derivative exchange platform ByBt.

When traders are long on a particular asset, they are simply gaining exposure to the cryptocurrency in question, in hopes that prices will surge significantly at a later time. It appears that a lot of investors were bullish on crypto for the most part, as long positions were significantly higher than shorts. Precisely $946.10 million worth of crypto was liquidated, while $6.56 million short positions were liquidated.

Liquidations usually take place in the crypto market when a trader’s leveraged position is forcefully sealed by an exchange when the trader’s initial margin is partially or totally lost. Futures and margin trading is usually where liquidation is common.

Many market pundits have warned against over-leverage, which they point to as the case of repeated liquidation. However, despite cryptocurrencies being high-risk due to the intense volatility, leveraging provides an opportunity for investors to generate significant profit. For this reason, liquidations are imminent.

Advertisement &  & 

On a larger spectrum, the question at hand is how the market will be affected going forward. Although no one can accurately predict, recent events hint that the dip could go even deeper, no thanks to fundamental factors like the ongoing Evergrande crisis.

“The Hong Kong stock market plummeted, triggering a decline in global markets and cryptocurrencies. The main reason is Evergrande, China’s largest real estate company with nearly 2 trillion debts.” wrote Chinese journalist Colin Wu.

Thus far, leading assets like Bitcoin, Ether, Solana, Cardano, and many others have dropped in price value and are, at this time, still going downwards. Bitcoin has plummeted to $42,928. While losing more than 7% in value today. Ether, XRP, SOL, DOGE, and Cardano are likewise seeing an extensive decline.

In response to the dip, analysts have responded to their previous sentiments on Bitcoin especially, saying that the expected floor price for this month remains at $42,000 and that a bounce will follow a while later. Altcoin analysts are also keeping their fingers crossed to see how the next 24hrs play out before predicting the market’s trajectory.

PlatoAi. Web3 Reimagined. Data Intelligence Amplified.

Click here to access.

Source: https://zycrypto.com/china-again-why-the-crypto-market-lost-over-300-billion-in-hours-and-what-to-expect/

Continue Reading
Blockchain3 days ago

Over 40 days after Ethereum’s EIP-1559, here’s where it stands

News5 days ago

Gods Unchained and Guild of Guardians Layer 2 Solution Immutable Raises $60 Million

Blockchain4 days ago

Cardano Sees an Influx in Smart Contracts ! But There’s a Twist

Blockchain5 days ago

If Shiba Inu is a ‘shitcoin,’ why are exchanges still listing it

Uncategorized3 days ago

NBA 2K22 Limitless Spot-Up and Chef Badges Explained

Blockchain5 days ago

Ethereum, NEO, Dogecoin Price Analysis: 16 September

Uncategorized5 days ago

Laos Green-Lights Cryptocurrency Trials

Uncategorized5 days ago

DeFi comes to Cardano (ADA) as EMURGO announces ‘Astarter’

Blockchain3 days ago

After Targeting BlockFi, State Regulators Now Set Their Eyes On Celsius

Blockchain5 days ago

Bitdefender Releases Tool To Decrypt Files Affected by REvil/Sodinokibi Ransomware

Uncategorized3 days ago

Best Dribble Pull-Up in NBA 2K22: Which to Use

Uncategorized3 days ago

What is The Old Gym in NBA 2K22 Next Gen?

Blockchain5 days ago

Bitcoin Cash: A 40% hike may be incoming from this setup

Uncategorized3 days ago

NFTs Are the Building Blocks of the Metaverse — Here’s How It’s Being Built

Blockchain3 days ago

EY Taps Polygon Network to Improve Enterprise Clients’ Experience 

Blockchain2 days ago

Flux Pools autoriza o pagamento de ativos paralelos em mais de 300K Flux!

Uncategorized5 days ago

Tether Claims to Hold no Commercial Paper From Struggling Evergrande

Uncategorized3 days ago

Shiba Inu (SHIB) Rises to Range High

Blockchain3 days ago

Matic Price to hit $1.75 in the next leg up! Launch on Bitfinex to be the Catalyst?

Uncategorized4 days ago

The Head of Diem wants you to trust Facebook, but is he fighting a losing battle?

Trending