Aug 12, 2021
The crypto market experienced a nice surge this past week, and the activity has reignited interest in digital assets and decentralized finance. Join Alex & Jacki as they take this opportunity to get back to the basics of what cryptocurrency is and why anyone should care about this industry. We are here for all of your crypto needs! Check out www.mycryptoadvisor.com; we are here to help you and your business understand blockchain cryptocurrency and capitalize on early adoption!
0:40 - Cryptocurrencies are backed by blockchain technology - similar to a bank ledger where transactions are recorded. In place of trusting banks like we do now, we only need to trust the code and rules of a blockchain network.
1:11 - This technology allows you to be your own bank.
1: 20 - 2017 World Bank showed 1.7 billion people without access to financial services.
1:50 - Anyone with a mobile phone and internet connection can access financial services.
1:57 - Staking earns interest on crypto, far superior to traditional interest rates.
2:15 - The farmer in a developing country has the same access to crypto as a broker on Wall Street.
2:34 - Most of our money is already digitized, it’s important to recognize our current weaknesses to grasp the promise of blockchain.
2:46 - A blockchain network is a large network of computers (nodes) that secure the network (more nodes, more security). Every update is distributed to each node, all working together to strengthen the network. This makes the system virtually unhackable.
3:12 - the data blocks on a network are cryptographically secured, meaning complex math equations run by the nodes are what creates & secures each block. Our current digital money systems do not have anything close to this type of security.
3:30 - We are moving from our current “centralized” banking to a “decentralized” system. Nodes are distributed all over the world.
3:57 - For example, a network with servers in one geographic area is much more open to hacking than one that has various global locations.
4:40 - The big two cryptos - Bitcoin and Ethereum - are both being actively used to due business online right now. So are they currencies, assets, commodities? Global governments are still figuring this one out.
5:15 - “cyrptocurrency” is a bit of a misnomer — the Paraguay bill defines them as “digital assets.” They are more than exchanging value - some have utility, like Ether as “gas” that fuels the Ethereum network.
6:01 - Crypto can also be a “tokenized asset” - like PAX gold (paxos.com) where one token represents one ounce of gold stored in a vault.
6:24 - USD coin is a tokenized version of the US dollar.
6:48 - Is the US digital dollar included in the overall Federal Reserve?
7:10 - The current US dollar tokens are mainly coming from the private sector. But the Federal Reserve is working on a digital coin that could be directly deposited to its citizens, bypassing commercial banks.
7:51 - The US Post Office has a new role: They are going to help people set up digital wallets and also house crypto ATMs.
8:10 - The majority of Bitcoin ATMs are in the US. Imagine going to another country and simply scanning a QR code to sell some Bitcoin and receive the local currency.
8:40 - So why should we care? For starters, countries are ready to make Bitcoin legal tender. El Salvador was the first adopter - with many South American countries and Malta all crafting plans to be next.
9:00 - Many retailers are accepting Bitcoin: Etsy, AT&T, Dominos, BMW, AMC theaters … and even charities like the United Way and the Red Cross.
9:35 - Additionally, we can see the growing number of ATMs and companies/institutions putting Bitcoin on their balance sheets or allowing their investors to trade, it is really growing in the last two years.
10:00 - If you work in banking, this is the time to learn about cryptocurrencies! Consumers are asking questions, and financial institutions need to have intelligent responses.
(Disclaimer: Cryptocurrencies are volatile and can move quickly in any direction. My Cryptocast is not responsible for any trading loss incurred by following our advice. Any opinions, news, research, analysis, prices, or other information provided by My Cryptocast is given as general market commentary and not purported to be fact. Please do not trade or invest based solely on this information.)
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