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Crypto in Plain English - by cryptohunt.it

Crypto in Plain English - by cryptohunt.it

By cryptohunt
Every day, we explore the world of crypto and blockchain in one minute and in plain English.
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TerraUSD meltdown, part 1: What is a peg? - Crypto in Plain English - Episode 165 - by cryptohunt.it
TerraUSD meltdown, part 1: What is a peg? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. What is a peg and what does it do for stablecoins? Welcome to part one of our one-week special on the TerraUSD collapse. You probably heard about the crypto meltdown of the not-so-stable stablecoin TerraUSD. And it all started with it losing its “peg”. But what is a peg anyhow, and what does losing it do? A peg describes a very close relationship in value between two financial instruments. The price of one always follows the other’s very closely, something finance called “peg”. In this case, TerraUSD was pegged to the US Dollar, which is just a fancy way of saying that its own value is always very close to one actual US Dollar. Unlike other crypto currencies which fluctuate a lot in value, one TerraUSD should have always been worth one US Dollar. But the system isn’t perfect, think of the peg like a rubber band between the two. In normal times, a TerraUSD could be worth 99c, or a dollar and a cent. The rubber band keeps them close enough for those differences to be very, very small and not matter in practice. Until it lost the peg. That rubber band snapped, and the stablecoin lost its value and plummeted. It currently sits at just 17c, a total loss of 9 billion dollars which makes this one of the largest crypto meltdowns ever. So: How on earth did that happen? Let’s dig into the inner workings of TerraUSD’s rubber band in the next episode. Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.
01:57
May 16, 2022
Why does crypto go down when interest rates go up? - Crypto in Plain English - Episode 164 - by cryptohunt.it
Why does crypto go down when interest rates go up? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today, let’s try and understand the recent events in the stock and crypto markets. You’ve seen the news: The US Federal Reserve is raising interest rates and suddenly the markets freak out. What does one have to do with the other? When a governments’ central bank raises interest rates, it means that they will guarantee a certain amount of return on investment to anyone. For you, that means you will soon get more interest for money in your savings account, thanks to the government. But more money in savings accounts also means that more people will take money out of risky investments, such as stock and crypto, and put it back into savings. The reason is simple: It’s much safer, and will now make them enough to be happy with. And because those people sell that stock and crypto, it drives prices lower. And suddenly other people get worried and also sell, causing a downward spiral. So, why on earth would governments want this? Right now, it helps reduce high inflation: People lose some money in their investments, they spend less, prices have to go down. And it gives them another powerful tool: When central banks need to, they can now lower interest rates to induce the opposite effect: Increase stock prices when markets need stimulation. Now you know why investments have lost value recently. Hang in there and keep learning! Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.
01:49
May 13, 2022
Are there 19 million Bitcoins or 21 million? - Crypto in Plain English - Episode 163 - by cryptohunt.it
Are there 19 million Bitcoins or 21 million? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. You and us, we’ve talked about this a few times now. Theoretically, there could be 21 million Bitcoins out there, but only 19 million are actually in circulation. Why is that? Let’s take a step back in history! The year is 2008. Investment banks are collapsing under the load of their own bad financial products, and governments are bailing them out. And people are mad: The governments are printing money to do it, which is creating inflation. You, the normal citizen who caused no harm, suddenly see prices increase everywhere around you. Bitcoin, which came out shortly after in 2009, is believed to have been created in response to these policies. The idea was: What if we created a new type of money that nobody can mess with, not even the government? To make that happen, it was written in code that there can only ever be a maximum of 21 million Bitcoins. But things started out much more moderately than that - only 1m were in circulation. The rest is set aside as rewards for mining, the process that validates transactions. It costs money to operate the hardware, and so this reward was made part of Bitcoin. Which brings us to today. 18m or the 19m existing Bitcoins have all been earned through mining, and 2m are left until the maximum of 21m is reached. Sounds like a small amount, but it will likely take another 50 years to get there thanks to a process called Halfing. Go check out episode 50 for that. Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.
01:53
May 12, 2022
What is diluted market capitalization? - Crypto in Plain English - Episode 162 - by cryptohunt.it
What is diluted market capitalization? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today, let us explain diluted market capitalization, a term any crypto investor should understand. But first, jump back one episode where we explain market capitalization itself. A cryptocurrency’s market capitalization is the total amount of money in circulation of that cryptocurrency. Let’s take Bitcoin as an example. Currently priced at around $30,000 per Bitcoin, there are 19 million of them. In total they are worth 590 billion dollars. That’s a lot of money, but it doesn’t actually include all of the possible Bitcoins. Eventually, there will be up to 21 million Bitcoin in circulation. The difference, a whopping 2 million, is just being held back as rewards for those operating the network, also called miners. Fully diluted market capitalization refers to the theoretical value of all possible Bitcoins in circulation. If you add those 2m yet-to-be-mined coins to the market cap, you get a total diluted market cap of 650 billion at the current price, a 60 billion US dollar difference. Head buzzing? Let’s recap. Market cap refers to all the actual money that is currently floating around in a cryptocurrency. Fully diluted market cap is the higher, theoretical value of the maximum possible number of coins. And in the next episode we’ll explain why the inventors of Bitcoin set a limit at 21 million of them and how you could get some of the ones being held back today. Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.
02:02
May 11, 2022
What is market capitalization? - Crypto in Plain English - Episode 161 - by cryptohunt.it
What is market capitalization? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today, let us explain market capitalization, a very basic term any investor should be familiar with. Market capitalization simply refers to the amount of money all the shares of a company are worth when taken together. Let’s take an example: Coca Cola, the company. Right now, a single share is worth about $65 dollars, and there are about 4.4 billion shares in circulation. Multiply the two, and you will see that Coca Cola has a market cap – short for capitalization – of 281 billion US dollars. That value helps you compare companies. Pepsi for example, has a market cap of 240 billion US dollars, slightly less than Coca Cola. That means that investors think that Coca Cola has a little more business potential than Pepsi. The same applies to blockchains. A cryptocurrencies market cap is the amount of coins that exist, multiplied by the value of each. Is your head buzzing? This example will make more sense: A single Bitcoin is currently worth about $30,000. There are roughly 19 million Bitcoins. Add all those zeros and you will see: All of the Bitcoins together are worth 600 billion dollars in market cap, almost three times as much as Pepsi and more than double that of Ethereum. And now that you understand market cap, go browse the web and compare: How much larger is Apple than Microsoft? How many car companies could you buy with all of the Bitcoins? We are sure you’ll find tons of interesting comparisons, whether they are useful or just fun. Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.
01:56
May 10, 2022
How the NSA helped create Bitcoin - Crypto in Plain English - Episode 160 - by cryptohunt.it
How the NSA helped create Bitcoin Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. You’ve heard it everywhere: most governments are really cautious about cryptocurrencies, some even feel threatened by the new technology. It will come as a surprise to you then that the NSA, America’s National Security Agency and one of the largest intelligence agencies in the world, actually created the technology that Bitcoin is based on. How is this possible? Let’s dig in. It is the year 1993! The internet is just at the brink of mass adoption, very exciting times! And the military had been using it for a while already, and so have universities, and the US government started to think about security: What if someone figured out a way to listen in? The problem at the time was that security was based on encryption algorithms that kept getting cracked by talented hackers and mathematicians. So the NSA decided: Let’s create our own and make it available to everyone. A secure internet for all is better than one everyone can hack. They called it SHA, for “secure hashing algorithm” and it took off like crazy: Everyone uses a version of it today. In fact, even the data transferring my voice to you is encrypted by it right now. And ironically, the very thing the US government aims to regulate also uses the same algorithms. Bitcoin would not be possible without SHA, and thanks to the NSA anyone can use it for their project. In fact, SHA is so good that Bitcoin was never hacked. So, next time the topic at the family dinner table turns to the government, you can point out that our internet would not be the same without the NSA. Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.
02:09
May 09, 2022
What is a hash used for? - Crypto in Plain English - Episode 159 - by cryptohunt.it
What is a hash used for? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. No doubt: You’ve heard the word hash thrown around by crypto enthusiasts. Strap in, this is a complicated one, but we’ll break it down. And hey - we guarantee you that lots of those crypto folks don’t actually know what it means either and are just trying to impress you, so here’s your chance to get ahead! First, let’s talk about the purpose those hashes solve: Simply said, they help prevent fraud in blockchains. Here’s how that works: Remember that blockchains are nothing other than long lists of transactions, stored as separate copies on many different computers. Altering the history of that blockchain is attractive to hackers, because they could create a different record that suddenly shows them as having lots of crypto. When people pay with crypto, each group of payments gets summarized as a hash after they have been recorded. The hash is a math function which takes all of those transactions, and that could be a lot of information, and compresses them into a really short, but unique text. It is very easy for a computer to summarize things into a hash, but almost impossible to turn a hash into the original data. It’s like your fingerprint: All of your genes come together when you are born, resulting in hands with a unique fingerprint for each finger. It works in that direction for every human being, every time. Even identical twins don’t have matching fingerprints. But nobody can take your fingerprint and recreate your DNA from it. But what does it do for a blockchain? Well, in one direction it makes it very easy to verify that all transactions in a blockchain are correct, but in the other it makes it super hard to unwind them and create an altered history. And now that we at least know what hashing is used for, let’s look into the role the NSA played in enabling Bitcoin. It’s a pretty big one! Stay tuned for the next episode. Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.
02:23
May 06, 2022
What is Gwei? - Crypto in Plain English - Episode 158 - by cryptohunt.it
What is Gwei? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. If you have used Ethereum, you have likely encountered the term “Gwei” (Christian: Gu-uei). And if you haven’t – tune in, because it’s one of the core things to learn when using Ethereum or similar blockchains. A Gwei is simply the smallest possible fraction of an Ethereum. While you can certainly send around whole Ethereums, you don’t have to. In fact, an entire Ethereum is worth several thousand dollars, and if you wanted to buy ice cream with it, you would need to send a small fraction of one - otherwise, that would be a very expensive frozen treat! A Gwei is very similar to a Dollar or Euro Cent. Those cents are also the smallest possible fractions of that currency. When you buy something, the price always comes out to something rounded to the nearest cent. No store will ever charge you 1 dollar and 95.3 cents. It’ll just be 1.95. And a Gwei is really, really small actually. It’s one billionth of one Ethereum, which is currently worth one 30.000th of a US dollar cent. But where does the name come from? It is named for ​​Wei Dai, one of the pioneers of the crypto technology that is powering many of today’s blockchains. And now that you know what a Gwei is, keep an eye out for other names of the same concept. In Bitcoin, it’s called a “Satoshi”, in Cardano a “lovelace”, and Stellar calls it a “stroop”. But now you know: It’s all the same idea. Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.
01:49
May 05, 2022
Who is Jack Dorsey? - Crypto in Plain English - Episode 157 - by cryptohunt.it
Who is Jack Dorsey? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today, let’s talk about another prominent person in the crypto space: Jack Dorsey. Jack Dorsey: Isn’t that the Twitter guy, you ask? What does he have to do with crypto? Yes, that Jack Dorsey, co-founder and long-time CEO of Twitter is also a big player in the crypto space. Let’s dig in, and as always, start at the beginning. Dorsey, an American born in St. Louis dropped out of college to pursue the idea of what later became Twitter. It took a while and some strange turns - from taxi dispatching to sharing messaging app statuses with friends - for the actual Twitter product to emerge, but the rest is obviously history. But you may not know that he also started Square, a payments company that helps merchants accept credit card payments on their phone or point of sale terminal. The company has become very successful as well, and for a long time Dorsey was CEO of Square and Twitter at the same time. If you are thinking: come on, what about crypto, here we go: Dorsey had long been interested in crypto and eventually even renamed Square to Block, with a roadmap to accept crypto at all payment terminals. He also sold his first tweet as an NFT for $48m, is a proponent of Bitcoin, and has publicly criticized Ethereum many times. Dorsey recently left his CEO job at Twitter, to focus full time on Block. So keep an eye on that - we’ll likely see some interesting blockchain announcements from them soon. Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.
01:56
May 04, 2022
Who is Gary Vee? - Crypto in Plain English - Episode 156 - by cryptohunt.it
Who is Gary Vee? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. If you have been around crypto and NFTs, you might have heard of Gary Vaynerchuck, who is best known by his online name Gary Vee. And if you haven't heard of him, stay tuned - because Vee is an interesting person. Most recently for example, he made a reported $90m with VeeFriends, his own NFT collection. Vaynerchuk is an entrepreneur, investor, and influencer. Born in Belarus in the mid-seventies, Vee emigrated to the United States where he developed a knack for innovative marketing while helping his parents grow their East Coast wine business. But how exactly did he become this immensely popular Web 2 influencer, who is making waves in crypto? It was that wine store experience that inspired him to start a Youtube channel about wines, which quickly evolved into an increasingly successful channel about everything online marketing. Nowadays, he's a big influencer, who can fill stadiums with people who want to hear him speak. And on top of that, he's been very successful with early bets on startups like Facebook and Coinbase. And where do influencers go these days to make another buck? Crypto of course. He's been interested in it since 2014 and invested in projects like the Bored Ape NFTs. And that led him to create his own NFT series. Although criticized as "childish" art, he was able to market a series of his own drawings as NFTs and make a reported $90m off those. Vaynerchuk disagrees – of course. To him those pieces of art are true to themselves because they came out of his own hand. And that's just what it is - art is subjective and we'll let you judge as always. But keep in mind: Where influencers meet crypto, there might not be long term value for the buyer. Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.
02:18
May 03, 2022
Who is Charles Hoskinson? - Crypto in Plain English - Episode 155 - by cryptohunt.it
Who is Charles Hoskinson Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. This episode is about Charles Hoskinson, who you may know as the founder of Cardano. So let’s dig in, because there is a lot of history here. Hoskinson isn’t only the founder of Cardano, he was also among the original five co-founders of Ethereum. We already talked about two of the technical brains behind Ethereum, Vitalik Buterin and Gavin Wood, but Hoskinson was more on the business side of things. He helped the young team raise money through a so-called ICO, short for initial coin offering. That’s when a company sells their own token to the public instead of old-school shares. Eventually, Hoskinson was fired by Vitalik Buterin over a disagreement about the vision of the company. Hoskinson wanted to make Ethereum a commercial project, raise VC money, and build revenue streams. Buterin wanted to keep it a non-profit which it remains till this day. Hoskinson went on to start Cardano, a direct competitor to Ethereum. And that’s really where the most interesting part of the story lies – the crypto world is quite small if you look closely. Three of the largest blockchains have all been started by people who met on the original Ethereum team. Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.
01:32
May 02, 2022
Who is Gavin Wood? - Crypto in Plain English - Episode 154 - by cryptohunt.it
Who is Gavin Wood? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today, we want to introduce you to yet another cofounder of Ethereum - Gavin Wood. Gavin Wood is an interesting person to know because he developed some of the core technologies that power today’s blockchains. But let’s start at the beginning! Wood was born in the UK, where he attended the University of York and got a Masters in Software engineering and later on a PhD. He then went on to work as a research scientist for Microsoft. But his most fundamental contributions started when he joined Vitalik Buterin as one of the Ethereum Co-Founders at the very beginning in 2013. Remember that Ethereum’s goal was to create a blockchain that allows people to build all kinds of financial applications on, as opposed to just functioning as a means to move around money, like Bitcoin did at the time. To achieve that goal, a lot of completely new fundamentals had to be invented. It can get a little technical, but all you need to know is that he programmed many of them and it would be fair to say that Ethereum wouldn’t be the same without him. Eventually, he left Ethereum in 2016 and founded another blockchain you may have heard about: Polkadot. Remember how he created all those fundamental technologies to let people create cool things on Ethereum? Well, with Polkadot his plan was even more ambitious - why have just one blockchain that serves all purposes like Ethereum? What if we created a technology allowing anyone to create their own blockchain, fully customizable to their own needs? But you may have also heard Wood’s name pop up in mainstream media for another reason: He’s the single largest contributor of crypto donations to support Ukraine: He donated $5.8 million dollars to their government… all over the DOT, Polkadot’s native token, of course. Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.
02:11
April 29, 2022
Why is Facebook now called Meta, and what does it mean for crypto? - Crypto in Plain English - Episode 153 - by cryptohunt.it
Why is Facebook now called Meta, and what does it mean for crypto? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. So, you’ve heard the news. Facebook, the company, is no longer called Facebook. They renamed themselves to Meta, a new company with a focus on virtual reality. Sounds crazy? Well it is! No wonder that the reactions ranged from disbelief to making Meta the topic of many jokes. But let’s break it down and take a really good look. It might actually make sense! But first things first - Facebook, the product you know, isn’t going away, and neither are Instagram and all the other things the company operates. They will keep their names as well. But here’s the deal: Facebook as a company has long seen the writing on the wall. User growth hit its limits, and a younger generation prefers TikTok over Facebook and Instagram. And then there are the issues of free speech vs. misinformation, privacy concerns, and potential government regulations. These are, let’s be clear, very hard problems to solve even for a company like Facebook. So, what do you do then if you are Mark Zuckerberg: Work even harder and fight the slow death, maybe turn Facebook into something different and risk losing a money-printing business? Absolutely not, said Zuckerberg, and instead figured he could use all that sweet money to build an entirely different empire: One that owns virtual reality. It’s a crazy gamble on a specific version of the future, but let’s look at it: Virtual reality technology is already getting so good, people fly realistic airplanes, play games, and design cars in it. Plus, Facebook already owns Oculus, one of the dominant makers of VR headsets. It may sound distopion to you now, but is it such a stretch to assume that spending time in VR and interacting with others will be an experience many people prefer? Heck, what if we all end up spending most of our time there - working, hanging out, all the things you do. Let’s assume that happens: Then, suddenly people will want to own things to use and show off there. Humans are humans after all. And what is better suited than crypto to pay for virtual things? So keep an eye on it: It could be the killer use case for crypto, taking it from concept to essential. Whether Facebook will dominate the space or not, that is to be seen. But the strategy, although very bold, makes a ton of sense. If Zuckerberg succeeds, this could become the single most important turnaround any company has ever done. So, next time someone jokes about Meta, tell them there is something to this whole idea. Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.
03:16
April 28, 2022
Who is Sam Bankman-Fried? - Crypto in Plain English - Episode 152 - by cryptohunt.it
Who is Sam Bankman-Fried? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today, let’s get to know the creator of crypto currency exchange FTX, a person by the name of Sam Bankman-Fried, who - despite being a billionaire - still prefers to live with roommates and sleep in his office. Bankman-Fried was born in Stanford, California as the son of two Standford University Law professors. Being talented at math, he became interested in economics and started working as a funds trader while attending MIT. This turned into a full-time position, which he quit after a few years to start his own algorithmic trading firm – that means the business uses computer code to trade, not human decision. He realized there was money to be made in Bitcoin trading at slightly different prices in different places. By buying it a fraction of a dollar cheaper in one place, and selling it for a tiny profit somewhere else using nothing but computers, he managed to grow into $25m of trading volume every single day. Fascinated by crypto trading, he later founded FTX, one of the largest crypto exchanges in the world. He moved to Hong Kong, where laws are more favorable for his business. And if you are wondering: How do you achieve all of that? Apparently Bankman-Fried always works, never takes vacations, and sleeps on bean bags in his office. He likes them so much that he has one in every room. Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.
01:52
April 27, 2022
Who is Chris Dixon? - Crypto in Plain English - Episode 151 - by cryptohunt.it
Who is Chris Dixon? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today, in our little mini series about popular blockchain people let’s introduce you to Chris Dixon, general Partner at the famous venture capital firm Andreesen Horowitz, often abbreviated as A16Z. What makes Dixon interesting to know about is that he is one of the most prominent voices about Web 3 and crypto, which also turned him into one of the most successful investors in the space. Dixon came to Andreesen Horowitz after a successful Silicon Valley career: MBA, then Venture Capital, two-times successful founder with exits to McAffee and eBay. He got interested in crypto early, when Twitter shut down its app marketplace way back in 2008. This made it clear to him that the future of the internet shouldn’t be in the hands of just a few companies. And his bets paid off very handsomely. He was a very early investor in Coinbase for example, and now leads Andreesen Horowitz’s crypto team. You can find Dixon talking about crypto on Twitter, where he has a large following and regularly shares his thoughts on the future of the industry. Go check it out, he often breaks things down for the rest of us! Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.
01:35
April 26, 2022
Who is Vitalik Buterin? - Crypto in Plain English - Episode 150 - by cryptohunt.it
Who is Vitalik Buterin? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today, we start our little mini series about popular blockchain people you should know about… and the first one is: Vitalik Buterin. So who is he and why is he an interesting person? Vitalik Buterin is best-known as the co-founder of Ethereum and, with the exception of the mysterious Bitcoin founder Sotoshi Nakamoto, is probably the best known person in the entire crypto community. Buterin grew up in Russia as the son of computer scientists, and his family emigrated to Canada when he was six. He ended up being placed in classes for gifted children, because he was exceptional at math, and started enjoying programming and economics. But he also liked gaming, and spent countless hours playing World of Warcraft. Coincidentally that put him on the path to create Ethereum, because the game publisher took away his character’s main abilities in a single software update. At that very moment, Vitalik Buterin realized that centralized services have a lot of power over their users. This eventually motivated him to start working in Ethereum, which he first described in a paper in 2013. At the time, he was the publisher of Bitcoin Magazine, and liked the idea of Bitcoin, but wanted it to be more flexible than just do payments. Peter Thiel, co-founder of Paypal, took notice and convinced Buterin to take a $100,000 investment to drop out of school. And the rest is history. Obviously, Ethereum has become the most important blockchain for anything related to decentralized apps and finance, and Buterin is at the helm of its foundation. Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.
02:02
April 25, 2022
What does “Immutable” mean? - Crypto in Plain English - Episode 149 - by cryptohunt.it
What does “Immutable” mean? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Are you also tired of hearing those technical, hard to understand terms that blockchain insiders use all the time? So are we. And one of those often mentioned terms is “immutable”. Insiders will say things like: a blockchain is a so-called “immutable ledger”. But don’t get frustrated. It’s very easy to translate: Immutable just means that something can not be changed. Think of blockchains like a transaction history that is saved on thousands of computers. Because of that, and because blockchains have mechanisms in place to prevent bad actors from altering them, they are essentially unchangeable. This means: You can see every single thing that ever happened, and you can trust that the information is correct. Refreshing in times where we seemingly can’t agree on all that many things these days, isn’t it? And why don’t crypto insiders just say “unchangeable”? Beats us too. Maybe it makes them feel smarter. But don’t be frustrated – a lot of the tech talk is easier to understand than it seems, and we are here to teach you. One building block at a time! Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.
01:32
April 22, 2022
What is a Genesis Block? - Crypto in Plain English - Episode 148 - by cryptohunt.it
What is a Genesis Block? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today, we explain in simple terms what a Genesis Block is. A Genesis block is the first block to exist in a blockchain. But let’s take a step back and revisit the concept of blocks to fully understand what that actually means. Think of a blockchain as nothing more than a long history of financial transactions, saved indestructibly on many computers at the same time. If you know the history of who sent whom how much, you can easily determine what is in each person’s wallet. It’s like a family tree: History is represented by generations – parents have kids, and kids have grandkids. If you know that Peter is Christian’s son, and Audrey is Christian’s daughter, you can determine that Christian has two kids. But back to transactions now! Blocks are groups of those transaction records, and they simply exist to make it easier for computers to process many of them at the same time. A Genesis block gets its name from the biblical story of God creating the world out of nothing. That’s kind of what is happening with crypto too: Someone just decides to start somewhere - for example 50 Bitcoins. It’s an arbitrary starting point, and the amount is set by the inventor of that blockchain. Everything after then is up to the users of the blockchain. There you have it. All history has to start somewhere, including that of blockchains. And sometimes, there are some interesting nuggets to be found: Bitcoins Genesis block for example contained the headline of an article about banks being bailed out in the financial crisis of 2008. This led many to speculate it was invented as a currency that can’t be controlled by governments. Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.
02:11
April 21, 2022
Can you really make crypto while running? - Crypto in Plain English - Episode 147 - by cryptohunt.it
Can you really make crypto while running? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today, let’s look into a new trend: Apps that give you free crypto as a reward for being active: Run a mile, get a token. Get out of the house for a walk, get another one. But how does that work, are those tokens even worth collecting, and why would someone do this? You may have heard about “play to earn” games where you get crypto as rewards for participating. A new kind of app that works similarly, is getting popular: But this time it’s about “move to earn”. The idea is simple: You get rewarded with an app’s own token for exercising, and because the token can be traded on crypto exchanges, that reward may be exchanged for money. Sounds strange that someone would just give you money? You are not wrong - so let’s look into how those economics work. First, there are simply games that give you a token they invented and that token doesn’t have real value. It’s just a fun game to keep you on your toes - pun intended. And in some cases, even though those tokens are just like Yelp badges or Reddit Karma, speculators show up and pump the value up. But there are also cleverly disguised schemes that are influenced by popular play-to-earn games: Those “move to earn” games require you to buy in first. STEPN, the most popular one, forces you to buy a “sneaker NFT” for over $1000 before you can earn the token. They don’t say it, but the economics are simple: You buy in, so someone else can cash out. If total users are growing, everyone makes money - until people want to get out. Ponzi scheme, or just skin in the game… you’ll be the judge. And that’s it on “move to earn” - we will say: Get out of the house no matter what, but if you are intrigued, go do some more research! Maybe there is one you find fun to play. Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.
02:17
April 20, 2022
What is a custodial wallet? - Crypto in Plain English - Episode 146 - by cryptohunt.it
What is a custodial wallet? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today, let’s talk about a different type of wallet. The so-called “custodial” wallet. You may have never heard the term before, but it is the most common form of wallet. And if you have a crypto account with Coinbase, Binance, or other exchanges, you might actually have your crypto in a custodial wallet without knowing what it is. Remember that on a blockchain, each bank account is represented by a wallet. That wallet has an address, like your bank account number, and a secret key. Without the key, nobody has access. And managing that is cumbersome. You have to write down the keys somewhere, make sure you don’t lose them and keep others from stealing them. Countless amounts of crypto have simply been lost because people misplaced their secret key and will never be able to access their wallets again. Enter those “custodial” wallets. Instead of making you manage all those keys, they are simply managed by someone else, for example Coinbase. You may have noticed that once you are signed up, those services simply work - no need to write any special passwords down for each blockchain. This has huge usability advantages for you as a user of course. But at the same time, you have to trust those services not to lose your password or let hackers in. It’s a tradeoff, and some people who want to keep crypto for a very long time opt for cold storage instead - saving those passwords somewhere offline in a nearly indestructible form. There you have it: Custodial wallet just means someone else is keeping your funds in a wallet they have custody over. You don’t have to worry about keys and such, but have to trust them to do the right thing. The decision, as always, is yours. Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.
02:15
April 20, 2022
How can your crypto wallet also be your password to Web3? - Crypto in Plain English - Episode 145 - by cryptohunt.it
How can your crypto wallet also be your password to Web3? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. If you’ve ever come across one of those “Web 3” websites, you will have noticed that they don’t operate like normal websites: Instead of asking you to create an account with username or password, or log in through Google and Facebook, they simply connect to your wallet. But what does that do? And is it safe? Connecting with a crypto wallet really means nothing other than letting the website know that you own that particular address on the blockchain in that case. Think of it like buying a car on a financing plan: The dealer needs to know you actually have control over the money, they don’t really care about the sound of your name as long as you can pay. That’s why they do all these identity and credit checks. With blockchains, it’s much easier: You are the owner of your account because only you have the key. All your history is right there for everyone you let in. Like the car dealer, those sites don’t really need to know your name or email address to allow you to use a service, for example to exchange one token for another. And because your blockchain account is tied to you and you only, it can serve a double purpose as your login. Neat, isn’t it? But be careful - these web apps can ask for anything, including permissions to transfer things in and out of your wallet. Whatever they ask for, a dialog pops up. Always - and we mean this - always read very carefully what they are asking for. Confirming your identity is one thing, but there are plenty of scam websites out there: They will tell you it’s just a login, but hope you don’t read the dialog and just click “OK” when they are trying to clean out your wallet instead. And there you have it: Logging in with a wallet - kind of convenient, but still a little scary, so be careful. Things will surely get better over time, but keep your guards up for now. Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.
02:24
April 19, 2022
Does Bitcoin have to be a Planet Killer? - Crypto in Plain English - Episode 144 - by cryptohunt.it
Does Bitcoin have to be a Planet Killer? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. We’ve covered and complained about Bitcoin’s energy consumption in this podcast a bunch, but let’s face it: Bitcoin makes up over 40% of the money, putting it far ahead in the first place. Clearly, Bitcoin is attractive to investors despite the carbon emissions problem. So, the question is: Does Bitcoin HAVE to be a planet killer? Or can it be changed? Unfortunately, it’s a little bit of both and the answer is: It’s complicated. So let’s break it down! At the heart of Bitcoin’s wasteful nature is “proof of work”, a mechanism to validate transactions that burns energy by design. The thought is: Someone could take over the network by owning more than 50% of the mining capacity - which is called the 51% attack. So, let’s make it expensive for them to try, and introduce arbitrary energy intensive tasks each miner has to solve to participate. This mechanism has been really effective at preventing a 51% attack. But Bitcoin doesn’t have to be this wasteful. The technology could be advanced to use more modern methods, like “proof of stake”. There, miners lock up funds in an escrow account in return for mining rights, and would lose them if they did bad things. Proof of stake blockchains are not only extremely fast, but also need just minimal amounts of energy. But there is a catch, and it’s not technology, it’s human behavior. You see, mining is a HUGE business. Miners have invested millions into highly specialized Bitcoin computers, which are good at one thing, and one thing only: Solving those Bitcoin puzzles. Take the puzzles away, and the investment becomes useless. The problem? You need more than half the actors on the network to agree to that change and they have deep financial incentives to dislike that change. There you have it: It’s very unlikely that Bitcoin will ever become an energy friendly blockchain unfortunately. But as they say: stranger things have happened! Maybe we’ll all come to our senses one day and make the leap forward. Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.
02:41
April 15, 2022
What is Block Time? - Crypto in Plain English - Episode 142 - by cryptohunt.it
What is Block Time? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today, let’s explore another one of those cryptic blockchain terms: Block Time. What is it and why does it matter? Remember that blockchains are just long historic records of every transaction that ever happened. It’s like a family tree - a historical representation of an evolving document. Computers do the hard work of validating those transactions. They need to make sure that nobody tried to sneak a fake transaction in to inflate their wallet balance - just like you want to make sure that your prankster uncle doesn’t change your grandmother's name on your family tree. In blockchains, when enough computers come to the consensus that the record of transactions up to this point is correct, the network approves it. Now, this may take a little while to do. Bitcoin is famously slow because it forces computers to solve arbitrary puzzles to deter the bad guys from spamming the network with fake transactions. And because that is a known problem, transactions get bundled in so-called blocks. Instead of doing a puzzle for every single transaction, the puzzle is per block. And there you have it: Block time is the time it takes for such a block to be fully verified. For example, Bitcoin’s block time is about 10 minutes. And if you know that Bitcoin is limited to about 1500 transactions per block, you can quickly calculate that it can only handle 2.5 transactions per second. And those 2.5 transactions per second are not a lot at all, but you need to realize 10 mins block time in itself is also a very long time. Standing in line for ice cream and waiting that long for every single person ahead of you to pay would be absolutely no fun! So, you see - Block Time matters, because even thousands of transactions per second won’t solve a problem if you have to wait for a long time for YOURS to process. Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.
02:20
April 14, 2022
What is a Blockchain Bridge? - Crypto in Plain English - Episode 142 - by cryptohunt.it
What is a Blockchain Bridge? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today: What does a blockchain bridge do, and how does it work? The problem those bridges are trying to solve is almost as old as money itself. Imagine traveling to a different country and trying to spend the bills in your wallet at a restaurant. It will most likely not accept it and demand payment in their own local currency. That's why you can exchange money, say from your US Dollars to Euros or the other way around. But how does this work? It's all about collateral, or creating a reserve. An exchange kiosk at the airport would take your US Dollar and put it in the vault, then give you Euro in exchange. Your dollars are now the reserve that backs the Euros you've been given. Of course, because there are many people going to the same kiosk every day, your exact Dollar bill may end up in a different person's wallet, but the principle remains the same. Crypto bridges do the same thing. Because blockchains are separated, normally there would be no way to use, just as an example, Bitcoin on Solana. But people may want to do that, because they like Bitcoin, but want to take advantage of faster transactions on the Solana technology. The bridges will take your Bitcoin, and put it in a sort of digital vault. The technical term is literally "locking them up". In return, they'll create a new token that operates on Solana, representing the value of a Bitcoin. Let's call it SolanaBit. Anyone with a SolanaBit can go back to the bridge and free their Bitcoins in exchange for letting them invalidate the SolanaBit. And there are billions of coins locked up in vaults because they have been transferred over to other blockchains. But before you do that, know that there are big risks too - like any vault, if the bridge has security flaws, someone could break into it. The Wormhole Bridge lost $325m Ethereum in a hack just recently for example. And that's what a blockchain bridge does! If you use then, use them with caution! Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.
02:24
April 13, 2022
Why is the European Union trying to ban Bitcoin and Ethereum? - Crypto in Plain English - Episode 141 - by cryptohunt.it
Why is the European Union trying to ban Bitcoin and Ethereum? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today, let’s talk about a recently proposed law that would have made it illegal to use blockchains like Bitcoin and Ethereum in the European Union. So! Why would anyone want to do that? Because of big concerns about the environment. The EU has ambitious climate goals, and some blockchains consume excessive amounts of energy. At the heart of the proposal was banning those chains that use “proof of work”, which is how some blockchains verify transactions. This process is, in fact, MEANT to WASTE energy BY DESIGN. This is to deter bad actors from trying to overtake the network with fake requests, as every one of those would cost them restrictively high energy bills. Of course, although cleverly conceived with good intentions by the inventor of Bitcoin, this turned out to be a catastrophic idea for the planet: Bitcoin alone consumes more energy than Norway. And nowadays, there are alternatives that use massively better methods, all the way to carbon NEGATIVE blockchains. But making Bitcoin, Ethereum, and others that use “proof of work” illegal would have cut millions of crypto investors in the EU out of their investments. And so the law was changed to not include this provision - at least for now. What do you think? Should we have laws that force blockchains to become planet friendly? Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.
01:49
April 12, 2022
What is Biden's Executive Order on Crypto about? - Crypto in Plain English - Episode 140 - by cryptohunt.it
What is Biden's Executive Order on Crypto about? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today, let's take a deeper look into US President Biden's executive order on crypto and what it means. An executive order is a written instruction the US President can give to all of the federal agencies he has control over. It's called an executive order, because it is not a law - but it instructs agencies to interpret existing laws in certain ways, which can have significant impact in practice. One such area is cryptocurrencies. In its order, the Biden administration made a first attempt to clear the path for rules around when and how they are legal to use. And that is important. To date, rules mostly exist around taxation, but not around how to build and market crypto projects. But the crypto industry might become a major economic factor in tech, and without clear rules, companies may decide to go elsewhere. Large exchanges like FTX have already left the US and gone to Hong Kong for example. Other companies like Coinbase have long advocated for clear laws and rules instead of unknowns. So what exactly does the order include? First, it acknowledges that crypto is a major trend. But as a government, a balance has to be found between allowing legal innovation and protecting consumers. Take stable coins as an example - many are not as stable as they promise, and there is nobody to protect you from that today. Another important factor mentioned is the protection of the environment. Second, the order encourages the agencies to continue their research into a "digital dollar" - which could be a sort of crypto currency controlled by the US government. And lastly, because crypto can be so complicated, it also asks the attorney general to determine if the existing agencies are actually capable of handling a crypto future - or if the creation of a new entity, entirely focused on the topic, is necessary. All this is encouraging for crypto innovation in the United States. But remember - this is only an exploration of what could be. Laws will still have to be written and passed. Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.
02:47
April 11, 2022
What is a Consensus Mechanism in blockchains? - Crypto in Plain English - Episode 139 - by cryptohunt.it
What is a Consensus Mechanism in blockchains? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today, let's talk about consensus mechanisms in blockchains and why they are one of the most important concepts to understand. But first, let's quickly revisit how blockchains memorize transactions. Imagine blockchains are like your family history. Many members of your family have a copy of your family tree, but when you compare notes at your reunion, suddenly your uncle has a strange version where a few names are very different. So: If there are two or more copies of something, and they are not all exactly the same, who decides which one is the right one? That's where those consensus mechanisms come in. Consus here means agreeing how to validate information. Your family could decide: Any version of your family tree that has the most identical copies is the correct one. Or you can say: We designate a person we always trust to maintain our family history, because we know they are great at that stuff. Blockchains are the same, but deal with financial transaction history. Much like your family tree is in multiple peoples' hands, the blockchain is copied onto multiple computers, sometimes even thousands. Without a well-designed consensus mechanism anyone could just make up new information and assign their wallet money they never had. These rules are designed to make that as hard as possible. And quite successfully actually - Bitcoin and Ethereum have never been tricked into accepting fake information. And about that uncle - turns out he was just pranking everyone. Good that you had a working consensus mechanism in place! Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.
01:59
April 08, 2022
What is a Store of Value? - Crypto in Plain English - Episode 138 - by cryptohunt.it
What is a Store of Value? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. You've probably heard the term "store of value", which is usually used in reference to Bitcoin. But what does that actually mean? Store of value simply means that an asset is seen as one created to park money in. The most famous store of value is physical gold. People have long invested in it to diversify their portfolio in hopes of steady and relatively stable value increases over time. And there was more to it: throughout history owning gold showed: I am wealthy, and I am powerful. The idea itself is interesting if you think about it some more: While it finds application in products like electronics and jewelry, the amount of money parked in Gold is much higher than it should be if you just think about its practical use. You can already see the parallels to Bitcoin. Because it was a proof of concept from the early crypto days, the technology can not keep up with today's demand for speed, transaction volume, and programmability. It does, however, have a place in many investment portfolios with the intention to treat it as a kind of digital gold. Calling it a store of value though is a pretty large misnomer. Due to the volatility of the crypto markets, Bitcoin's price shoots up and down violently, much more than Gold does. So: As always, you'll be the judge. Digital gold or simply another speculative asset? Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.
01:54
April 07, 2022
Why is a big Hedge Fund betting against a stable coin? - Crypto in Plain English - Episode 137 - by cryptohunt.it
Why is a big Hedge Fund betting against a stable coin? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. A short seller called Fir Capital is making huge bets against Tether. A hedge fund betting on the decline of an investment wouldn't be newsworthy under normal circumstances, but this is different. Tether is a stable coin, and as such you'd expect it would always be the same value as the US dollar. And hedge funds speculate on huge price changes, not stability... So, what is going on here? Essentially, Fir Capital is saying they don't believe the coin is stable. In fact, they are so sure that they bet $4bn on the collapse of Tether. How does this make sense at all? Well, unlike other stable coins, Tether is not transparent about the investments they have made with the money put into their stable coin. Their reserve, also called backing, is suspected to be tied up in large Chinese real estate companies, and the hedge fund thinks those will lose a lot of value soon. This would make Tether unable to repay a larger amount of users who may want to exchange their USDT back into dollar. It's the perfect bet if you think about it. Tether is never going to be worth over $1, representing almost zero risk for the hedge fund. And if things do go wrong for Tether, they may win big time. A Hedge Fund betting against a crypto project for lack of transparency – ironic, but probably a good thing for consumers in the end. Just don't get caught in the middle. Goes to show: Always do your research and fully understand what's going on under the hood. Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.
01:56
April 06, 2022
What is “Transactions per second” (TPS) and why does it matter? - Crypto in Plain English - Episode 136 - by cryptohunt.it
What is “Transactions per second” (TPS) and why does it matter? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today, let's look into one the most fundamental requirement any blockchain will have to meet: That it can process enough transactions to handle the intended use cases. Transactions per Second, or TPS in short, is a measure of that capability. Why does it matter? Let's assume you create a new, amazing blockchain. Your goal is ambitious: It will be one global currency, poised to replace traditional payments entirely. Now, that would be a lot of payments. VISA, for example, processes a few thousand transactions every second, and that is only one credit card company in a few countries. Just how many your blockchain would really need to support is hard to guess, but we can safely assume it's hundreds of thousands of TPS. And guess what? Others have also tried and failed miserably. Bitcoin can handle only 7 TPS, a number that doesn't even support a single large supermarket. Ethereum does 14, so people pay to jump in front of the queue, and transaction fees become astronomical and impractical for smaller payments. You see, it sounds easier than it is, and any blockchain that wants to have a real shot will need to support massive TPS, and they need to be cheap as well. When you evaluate a project, keep an eye on it. Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.
01:41
April 05, 2022
What is a governance token? - Crypto in Plain English - Episode 135 - by cryptohunt.it
What is a governance token? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. By now, you know that there are many different kinds of tokens: for example regular cryptocurrency like Bitcoin, and stable coins like USD Coin. But you’ve probably also heard the term “governance token”. So what’s up with that? A governance token represents the right to vote on the future of the crypto project that it was created for. Think of it like a decision in your local sports club - everyone who is involved gets a say in key decisions. Here’s how that works: A new wave of companies, called Web 3 organizations, are starting to democratize ownership and influence over their decisions. They mint a crypto token and give that away to whoever they feel like. Usually that is active or early users, collaborators, and the like. That token then allows the holder to propose changes, or vote in proposals from others. Any proposal that passes will be implemented. But because the governance token is nothing other than a small computer program on the blockchain, this process is always going to work. Nothing can really interrupt it, and nobody can steal control. Unlike your local sports club, where the elected president can just decide to change the color of the building against the majority decision, here the code determines the rules. An interesting example of this is AAVE. This blockchain based borrowing and lending system has over 100,000 governance token holders. They use a forum to exchange ideas, such as making a new crypto currency available for users to borrow or lend on their platform. So, you see, decentralizing control actually happens in practice. There is more to crypto than just trading. Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.
02:05
April 04, 2022
What the meow are Cryptokitties? - Crypto in Plain English - Episode 134 - by cryptohunt.it
What the meow are Cryptokitties? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today: What the meow are Cryptokitties? CryptoKitties are one of the first crypto based games. The game lives on the Ethereum blockchain and the goal is to breed the most unique CryptoKitten. It starts like this: You enter the game with a virtual cat, and the cat has various traits, such as mouth shape, what kind of fur, etc. In total, 12 different traits exist. Then you can breed your kitten with that of another player or one of your own. It works like evolution - the traits mix and create new unique kittens. Yellow and Brown fur could create red fur for example. Kittens are represented as images with the images showcasing those unique traits. And the more unique a CryptoKitten is, the more expensive you can trade it for. And that’s Cryptokittens. A fun game or just another crazy crypto ponzi scheme? As always, we’ll let you judge! Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.
01:14
April 02, 2022
What is Wrapped Bitcoin? - Crypto in Plain English - Episode 133 - by cryptohunt.it
What is Wrapped Bitcoin? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today, let’s take a look at a really interesting crossover of the two most popular blockchains: Wrapped Bitcoin. Also found under its ticker WBTC, this token isn’t really it’s own currency, but in fact Bitcoin, but traded on Ethereum. Sounds confusing? We are here to help. Each wrapped Bitcoin represents the value of one actual Bitcoin, but is tradeable on the Ethereum blockchain. You see, while Bitcoin is really just a currency, Ethereum is like a bank and you can transact any financial instrument there, thanks for its smart contracts. But why would you want to do that in the first place? To get the best of both worlds. Bitcoin is the largest crypto currency by far, and people want to hold it as a store of value, similar to gold. But Bitcoin’s blockchain technology is very outdated at this point: It’s slow, and very expensive to operate. And we haven’t even talked about the climate impact yet! That’s why the investors of Wrapped Bitcoin thought: What if we can trade Bitcoin on Ethereum, allowing us to own Bitcoin without dealing with its old technology. And it seems like that was a good idea - about 1.5% of Bitcoin are wrapped, a current total of $13bn dollars. Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.
01:44
March 31, 2022
What makes Binance USD (BUSD) special? - Crypto in Plain English - Episode 132 - by cryptohunt.it
What makes Binance USD (BUSD) special? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today, let’s take a look at yet another stablecoin, Binance USD. Binance USD is the third largest stablecoin on the market with almost $20 billion US dollar exchanged for it. The price of Binance USD is linked to the US Dollar, making it yet another potential candidate to use for everyday payments as that gets rid of price volatility of traditional crypto. Fa