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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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What is Bitcoin? Crypto in Plain English – Episode 1 - by cryptohunt.it

Crypto in Plain English - by cryptohunt.it

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Why Stablecoins are almost always a bad investment - Crypto in Plain English - Episode 171 - by cryptohunt.it
Why Stablecoins are almost always a bad investment Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. As an avid listener of this podcast, you will have noticed: We have spent a lot of time explaining stable coins. This is somewhat of a passion for us: We love the idea, but we think the risks are not clearly communicated. So, what makes stable coins so risky? They are, after all, stable right? And that’s the problem. In theory they do represent a value that only fluctuates minimally. But many stablecoins have fundamental flaws: They may not be fully backed. Or their algorithms don’t hold up under pressure. Whatever the risk, the most important thing to realize is that there is no reward by design. You will never get MORE for them than you paid. But they can collapse, like TerraUSD did. And let’s take another look at Tether USD: The company refuses to tell you where the money is parked, yet it is the third largest cryptocurrency in the world. We want you to consider this: Risk with no reward. Is it worth it? We think maybe, for temporary money transfers or payments, but not to hold. But as always, do your own research - we are not here to give you investment advice, we want to teach you the basics to make the best decisions possible. 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.
01:37
May 24, 2022
TerraUSD meltdown, part 6: What’s next for Terra, Luna, and the world of stable coins? - Crypto in Plain English - Episode 170 - by cryptohunt.it
TerraUSD meltdown, part 6: What’s next for Terra, Luna, and the world of stable coins? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Remember the last episode, a chilling history of mass withdrawals of Terra triggering the Terra and Luna coin collapses? Welcome to the last part of our one-week special. Today: What will happen now? First, let’s speculate about the future of the Terra Luna blockchain. The organization running it has spent billions of their reserve, trying to stabilize the system, and it was all for nothing. They have no more powder left and it is safe to assume that the blockchain is dead forever, as public confidence is destroyed. Second, let’s talk about stable coins in general. As a frequent listener of this podcast, you remember that not all stable coins are as stable as they claim to be. Yet, many investors put their life savings into them because they trusted the claims. It’s likely that governments will crack down and put a lot of pressure on those instruments. There will also be a wave of other collapses as investors are withdrawing from stable coins. If you have money parked in them, consider one thing: By definition, stable coins don’t appreciate in value. But if they collapse, you could lose everything. It’s a very single-sided risk. And lastly, this is a great reminder for us all: Knowing the history and understanding the complicated inner workings of crypto is really crucial to making good decisions. We hope that this podcast is giving you the inspiration to learn and the confidence to choose wisely. Thanks for listening to this special, and if you have any feedback or questions, email us at podcast@cryptohunt.it. We would love to answer your questions! 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.
02:03
May 23, 2022
TerraUSD meltdown, part 5: Who killed TerraUSD: Malicious attack, or simply a weak design? - Crypto in Plain English - Episode 169 - by cryptohunt.it
TerraUSD meltdown, part 5: Who killed TerraUSD: Malicious attack, or simply a weak design? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Welcome back to part five of our one-week special on the TerraUSD collapse. Today: What caused the stable coin algorithms to stumble and lose the peg? If you haven’t followed from the beginning, please jump back a few minutes of listening time to episode 165. Last time we talked about the magic machine that exchanges eggs for dollar bills to stabilize egg prices. And we learned that this is exactly how TerraUSD worked - using a fixed exchange rate for Luna, it guaranteed the price of Terra. But we also said: A machine has its limits. And so did the Terra Luna stablecoin rubber band: A black swan event, one where many things happened at once, gave it a mighty kick and it lost balance. One major contributor was a project called Anchor Protocol. There, you could deposit Terra stablecoins for a crazy 20% interest, but as that became impossible to maintain, the project slashed interest rates overnight. People made a run for the 14 billion dollars parked there and flooded the Terra Luna stablecoin algorithm. As the machine couldn’t keep up, people were willing to take a discount on their stable coins to get out of the market, and that snapped the rubber band. But even worse: Now there was a ton of new Luna, printed by the machine when it exchanged Terra for it. The more Luna it created, the more the Luna price drove down. Eventually the panic crept into the general crypto market and everything dropped. In total, the market wiped out over $80bn dollars. And while there have been speculations about foul play, none of them have been proven. Some say it was a bad actor holding a massive short position. Others claimed popular hedge funds have something to do with it. But either are just conspiracy theories at this point. And it doesn’t really matter. What matters is that many investors had money in an ecosystem without knowing the real risks. So, in the next final episode, let’s talk about what’s next for Terra Luna, stablecoins, and what we can learn from 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.
02:42
May 20, 2022
TerraUSD meltdown, part 4: TerraUSDs Fatal Flaw - Crypto in Plain English - Episode 168 - by cryptohunt.it
Episode 168: TerraUSD meltdown, part 4: TerraUSDs fatal flaw Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Welcome to part four of our one-week special on the TerraUSD collapse. Today: How did TerraUSD collapse? Remember last episode, where we explained how an algorithmic machine can create a stable price for eggs between you and your friends? If not, jump back one episode to 167 because you’ll need the background. So now we understand that through the process of guaranteeing a stable exchange rate between eggs and dollars, and creating or destroying each in that exchange, we can stabilize prices. And that’s exactly how Terra worked. It has a sister currency called Luna and the two work just like those eggs and dollars. Get it? Terra - earth, grounded, stable. Luna - moon, space, volatile in value. The algorithm, just like your magic egg-dollar machine, is the rubber band between the two: It exchanges Terra for Luna and vice versa for a fixed rate, while destroying either one of the other in the process. But what could possibly go wrong? The system seems solid, doesn’t it? Well, say the unthinkable happens in our egg market: Overnight everyone turns into a vegan and wants to sell their eggs immediately. That machine would have to act very fast. Destroy egg! Print dollar! Destroy egg! Print dollar! But every machine has its limits. So did the Terra Luna exchange algorithm. It collapsed under the weight of too many requests to exchange. In the next episode: Let’s look at the history of what exactly happened on May 9th 2022, and why the Terra Luna machine was flooded with withdrawal requests. 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.
02:12
May 19, 2022
TerraUSD meltdown, part 3: How TerraUSD worked - the story of the magic egg-dollar machine - Crypto in Plain English - Episode 167 - by cryptohunt.it
TerraUSD meltdown, part 3: How TerraUSD worked - the story of  the magic egg-dollar machine Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Welcome to part three of our one-week special on the TerraUSD collapse. Today: How did TerraUSD actually work before it collapsed? The people behind Terra wanted to create a stable coin for easy online payments. And a decision was made: Let’s use a self-stabilizing algorithm instead of central reserves. So, let’s look under the hood and explain how that works… with an analogy as always. Let’s go! Say that you and your friends agree that – from now on – one egg is always worth one dollar. You all keep your promise for a while and trade happily, until one friend gets tired of eggs and wants to dump them all for 80 cents a piece. Suddenly, the entire market adjusts, and egg prices aren't stable anymore. So you invent a really powerful machine: It can create eggs, destroy eggs, print dollar bills, and burn dollar bills. And the machine operates by two basic laws: Law one: If you give it a dollar, it burns it and creates you an egg. Law two: If you give it an egg, it destroys it, and prints you a dollar. Immediately, everyone would see the opportunity: Buy those cheap eggs directly from your friend for 80 cents, and exchange them for a full dollar through the machine. They just made 20 cents, a 25% profit! Bankers call this arbitrage and they love it. Once they are in on the action, there are soon only eggs worth $1 left for sale. And whenever a small discount pops up again, the bankers will make sure to close that. Your magic machine just created stable-eggs. And it’s exactly like that algorithm that powered TerraUSD. And in the next episode, we’ll look at the machine's fatal flaw. 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.
02:27
May 18, 2022
TerraUSD meltdown, part 2: What is an algorithmic stablecoin? - Crypto in Plain English - Episode 166 - by cryptohunt.it
TerraUSD meltdown, part 2: What is an algorithmic stablecoin? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Remember the last episode about a peg, the rubber band that keeps a stablecoin stable? Welcome to part two of our one-week special on the TerraUSD collapse. Today: How does an algorithmic stablecoin actually work? Let’s remember the rubber band analogy. If the value of a stable coin moves too high, the rubber band has to snap back, and the same happens in the opposite direction. There are two types of stable coins: Collateralized and algorithmic. Collateralized coins are easy to understand: There is real money in a central reserve backing them, and whenever someone wants to exchange a stablecoin back, the real money gets taken from the reserve. Algorithmic stablecoins are different. They use computer code to balance their price automatically. The most simple ones just create more of their own coins - which decreases the price - or invalidate existing ones - which increases the price. But since computer code can do much more complicated things, people have also built far crazier mechanisms into stable coins. The problem is that these work in 99.9% of the real-world use cases, but in those rare moments of extreme tension, the rubber band tears and the system collapses. And that’s exactly what happened with TerraUSD. The algorithm tripped, fell on its nose, and kicked off a snowball that turned into an avalanche. So, in the next episode, let’s look behind the curtains of how TerraUSD was working to understand what went wrong. 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 17, 2022
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