Nobel Laureate Abhijeet Banerjee has recently asked India to print more money and transfer them to the poor class of people to increase demand in the market to tackle upcoming recession post COVID-19. Reference: https://m.telegraphindia.com/business/abhijit-banerjee-offers-print-money-pill/cid/1763262A lot of economists will say it is a bad idea because later it will become very difficult to arrest inflation rate. But increasing the demand is a major challenge as well. Voice your opinion! Will be good or bad step for a diverse country like India? it depends: do you want stability or revolution? the lockdowns are hardest on the poorest populations, who have no savings, live in overcrowded slum conditions, and are worst equipped for a complete economic stoppage. if this continues for months and nothing is done to mitigate their suffering, they will begin rioting and revolting and taking by force what they need to survive. with a population like india's, no police or armies could ever stop them. the question for policymakers is, do you want millions and millions of hungry poor rioting in the streets (which will also make the pandemic grow exponentially as society stops heeding social distancing and quarantines)? or do you want stability at the cost of future inflation? if i were a policymaker trying to maintain the rule of law, the answer seems obvious. You have an intelligent point here. There can't be stability in any economy as there is never a situation of economic equilibrium. Yes, in regards to exponential growth of the virus and inflation there is need for a tradeoff between the two. Better still, a stimulus package should be given to people. |
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Read this topic by BitCryptex: The Lightning Network FAQ specially the part " How fast and reliable are LN payments?". -already linked above-In addition to those facts, if most of the micro-transactions ( small payments) are done through LN, then the mainchain will have less pending transactions that should solve those " frictions"... But it's too early to speculate that.
When bitcoin and the blockchian technology were introduced in 2008, there were two major frictions around the transfer of bitcoin. They were:
FYI, when Bitcoin was first introduced, the fee wasn't mandatory, you can send 0sat/byte transaction and nodes will relay it and even after the introduction of " minimum relay fee", it wasn't an issue until late 2017 - early 2018 " blockchain craze". First transaction: https://www.blockchain.com/btc/tx/f4184fc596403b9d638783cf57adfe4c75c605f6356fbc91338530e9831e9e16 (0 sat/byte) Since LN reduces the bulk of transaction on the normal bitcoin block chain, will one be limited to use one's coins just within the platform or network? |
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~
How does the lightening Network helps to solve these frictions in bitcoin transactions?
My simple answer is that transactions are done off-chain. They will only be broadcasted to the blockchain when a channel is opened/closed. You should probably read The Lightning Network FAQ's Nice one. I also discovered that payment to be made using LN is once per time while doing transaction directly on block chain. This cut off huge cost. The link is mainly geared towards those that desire to own the nodes for Lightening Network business. |
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When bitcoin and the blockchian technology were introduced in 2008, there were two major frictions around the transfer of bitcoin. They were:
1.The high cost of transfer fee.
2.The delay of transfer.
In an attempt to solve this problems Joseph Poon and Thaddeus Dryja created what's known as the lightening Network (LN).
My question is:
How does the lightening Network helps to solve these frictions in bitcoin transactions?
Your input will be appreciated.
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So it turn's out the Bank of England is looking to launch it's very own CBDC (Central Bank Digital Currency) after doing some digging we look like were heading into the real of China where everything to do with your finances is tracked and on the "ledger" Below is a copy of there paper dated March 2020 and signed by Mark Carney. The 57 page document is the ground work into the inner working of how the system will operate and be launched and makes for stark reading into where the central banks are heading. I believe that the COVID-19 outbreak will be the catalyst for them to want to remove cash from our society's the argument will be that cash spreads disease. I wanted to draw attention to a specific section in the document. Full Document Link https://www.bankofengland.co.uk/-/media/boe/files/paper/2020/central-bank-digital-currency-opportunities-challenges-and-design.pdf?la=en&hash=DFAD18646A77C00772AF1C5B18E63E71F68E4593
4.7 Privacy and data protection
It will be essential to consider how privacy is respected and how data is protected in a CBDC system. Privacy and
data protection is an issue that is of concern to policymakers in government and other authorities(5) and should be
considered carefully when designing CBDC.
Any CBDC system would need to be compatible with privacy regulations, such as the 2018 General Data
Protection Regulation (GDPR), which would apply to the Bank of England, Payment Interface Providers and any
other firms providing CBDC‑related services. In simple terms, this means that users should have control over how
their data is used and who it is shared with. Any third‑party processing data will need to observe applicable data
protection legislation.
(5) In the UK, this would include the Department for Digital, Culture, Media and Sport (DCMS) and the Information Commissioners’ Office (ICO).
Other approaches to providing CBDC
An alternative to CBDC would be for private sector firms to issue liabilities which were fully backed by funds held
at the central bank. These firms would act as intermediaries between the central bank and the end‑users.
Providing that the regulatory framework ensures that these firms’ liabilities were always fully backed by funds at
the central bank, these liabilities could share many of the characteristics of a CBDC that is directly issued by the
central bank. However these liabilities would not be central bank money, as holders would not hold a direct claim
on the central bank.
Such an approach has been suggested by some stablecoin proposals. It has also been described by some
researchers as ‘synthetic CBDC’ (Adrian and Mancini‑Griffoli (2019)).
In line with the Financial Policy Committee’s principles for regulation of payments and expectations relating to
stablecoins, such an approach would require appropriate regulation and supervision to ensure that equivalent
standards apply as with existing forms of private money.
Discussion Paper: Central Bank Digital Currency March 2020 32
The appropriate degree of anonymity in a CBDC system is a political and social question, rather than a narrow
technical question. As discussed above, CBDC would need to be compliant with AML regulations, which rules out
truly anonymous payments. However, CBDC could be designed to protect privacy and give users control over who
they share data with, even if CBDC payments are not truly anonymous (or secret). For example, a user may
legitimately want to make a payment to a supermarket without sharing their identity with the supermarket, as
this would allow the supermarket to build a picture of their shopping habits. In most cases, the payer should be
able to pay without revealing their identity to the payee. In this sense, they could have anonymity with regards to
other users, without having anonymity with regards to law enforcement.
Some discussions of CBDC assume that CBDC is equivalent to cash and so should offer the same degree of
anonymity in payments. When a payer hands over cash to a payee, for example in a shop, the payee does not
receive any data about the identity of the payer, and there is no digital record that links the payer and payee.(6)
But the fact that an in‑person cash payment provides an anonymous means of payment is a result of the nature of
this payment method. The Bank does not have a specific mandate to provide untraceable or anonymous payment
methods.
Thought's and comments welcome on this subject do you think this is the steps to full control over people and there spending?.. From my deduction from that digital currency report is that the Reserve Bank will end up regulations and controlling the currency. As such, it is not decentralised instead it's centralisation (1.2) |
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COVID-19 is still spreading around the world, there are so many lives that passed away because of the virus, but despite of danger that this virus can give to use, it teaches us something in our lives.
1. Our earth feel free because there are a lot of company that produces air pollution that is being closed.
2. There are so many people who clean our environment, there is general cleaning in our community.
3. People learned how to be careful and protect their health.
4. Because of this virus, the government decided the lockdown on our are and by that we get so much bonding on our family.
5. There are a lot of cancelled activities and gathering such as (night club, vices, etc.)
6. The virus makes us so conscious on our environment.
7. Our camaraderie increases.
8. Our faith on our God increases.
I know and I believe that we can overcome this problem, let us all help each other, stay at home to prevent the risk of spreading the virus.
To add to it: it has also shown us that: Decentralized currencies like bitcoin is more reliable than fiat currencies. |
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Nobel Laureate Abhijeet Banerjee has recently asked India to print more money and transfer them to the poor class of people to increase demand in the market to tackle upcoming recession post COVID-19. Reference: https://m.telegraphindia.com/business/abhijit-banerjee-offers-print-money-pill/cid/1763262A lot of economists will say it is a bad idea because later it will become very difficult to arrest inflation rate. But increasing the demand is a major challenge as well. Voice your opinion! Will be good or bad step for a diverse country like India? Well, these are economic reactions of these coronavirus lockdown: 1. Limited in production and supply being that many non essential sectors are temporarily closedown. 2. Demand is obviously higher than supply- for both essential and non essential goods. 3. The income level of people can't sustain the economy at this state of little or no incoming of income. 4. Printing the rupee and injecting it into the economy will cause a demand-Pulled inflation, a situation were too much money is chasing few goods. Well, that's not a good monetary policy at this stage of the economy. |
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Just think about it a little.  You know that whatever happens with your government controlled investment, you will have a safety net from that government. History has shown us how governments have bailed out Banks and/or injected millions or even Billions of tax payers money into economies to protect it. They are printing Trillions of Dollars to reduce the impact of this Covid-19 virus on their local economy and they are doing this with money that was supposed to go to critical needs. (Public Health care / Social grants for unemployed people etc.) Did Bitcoin get any support from governments when Stock markets plummeted lately? No, because Bitcoin is seen as the enemy.  We relish in the fact that Bitcoin is not supported by the injection of slow poison from these governments, because this cannot be sustained indefinitely. At some stage we will see that taxes would not be enough to save Banks and/or local economies. Companies and individuals can only pay so much taxes, until they go bankrupt. It is only smoke & mirrors to postpone the inevitable collapse of the global economy. Will Bitcoin then be seen as a real safe haven or will it be too late? See, my thoughts and analysis on this thread is this: 1. A system that's self sustaining is a proof of a solid business model. 2. If bitcoin doesn't need an injection of cash during financial crisis while the global economy needs intervention to survive shows that bitcoin is more reliable. This goes a long way to show that crytocurrencies may be the future of currency. |
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I'd to thank all the people who provided me feedback in the DM.
I am really interested to know what feedbacks you got by pm. I doubt that a simple forum user from a netreul side share his opinions in private. What's this? I wouldn't lack of decency over the people I appreciate the most so I've been surprised that almost everyone (except CNBC; obviously) accepted to support my work.
This is why you have to differentiate between a Youtube content creator and a video editor. You can't only rely on support by others if you are really interested to continue working on this. My inputs regarding how you should structure your video contents are: 1. Have a specialized or niche knowledge at this beginning. It could be crypto technical analysis or trading. 2. Create videos to teach people the skills 3. Have series for newbies too. This won't be hard and its in high demand as many people are adopting crytocurrency and block chain. |
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imagine, BTC now is nominated in %20 of world's market transactions.
after a parity with market growth and stability in BTC value, there will be no mechanics for the worldwide community, to study the heavy production growth in the free market and the pressure it causes.
While reading your post the above quoted comment caught my attention. I have learnt that there is nothing like stability in Bitcoin because it runs on volatility- free market mechanism. If there is stability then there won't be trading benefits. Trading professionals are able to make profit because of the volatility nature of the system. |
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There are a lot of exchanges where you can swap your coins but the most important thing is choosing the right exchange. So instead of deposit your funds at the exchange you can use some hardware wallets like ledger nano s and trezor wallets.
I have not swap account before. So, what's the charge for swapping account from one exchange to another? |
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Stable coin doesn't solve hyperinflation at all, because :
1. The stablecoin issuer or creator could add new more stablecoin supply anytime. It happens many times with Tether stablecoin
2. Stablecoin is only as stable as asset/fiat which backed it. If the asset/fiat experience inflation, the stablecoin also got inflated.
Thanks. We have : 1.commodity pegging such as gold standard 2. Fiat pegging such as US dollar standard. 3. Cryro-pegging such as ethereum or bitcoin standard What if we use god which is relatively stable to peg stablecoins, won't it be stable or decrease in rate of fluctuations? |
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1. Can this new digital solution address volatility and stop economies from having hyperinflation?
No. Even stable coins are under investigation of inflation. For example, they said one USDT is backed by one US dollar but in reality can we have proof of this? 2. Which of the collaterization do you think will be feasible in achieving stability?
If there is a collateral that can help price stable, it is something relates to physical stuffs, such as gold. However even gold has its extremely high volatile period like last month. I know it does not often occur with gold but I take it as an example for the statement, there is nothing can play as a collateral to help other assets more stable. 4. What's bitcoin effort in trying to solve volatility problem?
The scheme of bitcoin block rewards does it. When there are not significant available mineable bitcoin left, the price will become more stable. You can see the curve will become more flattening since the coming halving. The bitcoin network has still moved till next four years to see the real flattening phase but we have been so closely to that phase. There are 87.26% of bitcoin total supply has been mined as of writing (18,324,150 has been mined per 21,000,000 total supply of bitcoin), according to coinmarketcap. Remember, with whatever happen in the future, bitcoin will not be completely stable because we have one thing is called Market. Market means volatile. Image source: https://www.coindesk.com/bitcoin-halving-explainerVery great analysis and graphical demonstration. There is no utopian market system which means the market will also be volatile. My question is what if we peg 1coin: $2-3 won't it help to solve volatility problem to a considerable extent? |
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You mean stablecoins might help to speed inflation? Well, still pondering over it. Well stability and inflation can not take place simultaneously. The equilibrium point of deflation and inflation of coins is stability.
Stablecoins are valued at 1 USD, and SHOULD be backed 1:1 with real US Dollars, but we really can't prove that it's actually really backed 1:1. My observation is what now make stablecoins different from altcoins and bitcoin?
As you can see on crypto price sites like coinmarketcap, stablecoins are pegged to the USD whereas bitcoin and altcoins are just priced through supply and demand, hence why bitcoin/altcoins can rise and fall as much as the market wants, whereas stablecoins are almost always $1. There can't be a point of equilibrium in a free market mechanism because it's either SS>DD or SS<DD. In that case a pegged coins may likely achieve stability. |
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In this case, Binance is the best option.
Their fee is very cheap. And they give best withdrawal limit without KYC.
Binance supports almost all countries and they are adding more fiat pairs to their exchange. This makes them the top exchange because they offer best service and support.
Very great comment. From the discussion so far on the thread its clear that shapeshift is out of it due to insecurity. It is also good to have an alternative exchange platform. Which other can you add to Binance platform so that I have two to choose from or have option B. |
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If all the stable coins would be backed properly, they would not change anything at all in the price evolution of the main coins (the world would be the same - with or without them, they'd just make the arbitrage and other transactions faster).
But the not-backed stable coins are dangerous. They are "made of thin air" and transfer value into the hands of the issuer by "stealing" value from the actual coins (I'm not sure how to word it better).
You made a very cogent point here that all should consider keenly: 1. Do you Stablecoins backed by other assets is not different from altcoins and bitcoin in terms of volatilities? 2. Why is the US dollar a fiat currency stable overtime? I believe one of the reasons is due to the backing of the gold standard. 3. Don't you feel that a crytocurrencies backed by fiat currency like USD will be more stable than dollars? Although, the market force is a powerful market trend force.
1. No. If anything, stablecoins might actually be helping speed up inflation. Because we don't even know for sure if all stablecoins currently exists are actually backed up 1:1 with the US Dollar. Some of these stablecoin companies(like Bitfinex) might actually be insolvent and are just printing out Tethers for the sake of it.
You mean stablecoins might help to speed inflation? Well, still pondering over it. Well stability and inflation can not take place simultaneously. The equilibrium point of deflation and inflation of coins is stability. My observation is what now make stablecoins different from altcoins and bitcoin? [moderator's note: consecutive posts merged] |
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Stablecoin exists to address volatility associated with bitcoin and altcoins.
We have collaterised coins which are in form of crypto-pegged coins, commodity-pegged coins and fiat-pegged coins with the goal of bringing stability to crytocurrencies.
My question are:
1. Can this new digital solution address volatility and stop economies from having hyperinflation?
2. Which of the collaterization do you think will be feasible in achieving stability?
3. Which coins have achieved this feat so far?
4. What's bitcoin effort in trying to solve volatility problem?
Kindly, share your thought on this important subject. Thanks
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Demand for Bitcoin online courses explodes by 300% In brief:
- Online learning platforms are seeing a huge surge of interest in Bitcoin and cryptocurrency courses.
- Udemy has seen a quadrupling of demand for Bitcoin-based classes.
- More people are turning to online education generally.
I think this is one bright side when people are in total lockdown and their attention goes to bitcoin and learning it. This is a good indication that bitcoin could explode in the next coming months and everything related to it, (blockchain, technical analysis courses etc). https://decrypt.co/24801/demand-for-bitcoin-online-courses-explodes-by-300There is an economic analysis to this trend. 1. The coronavirus pandemic has caused a global recession which translates to financial crisis. 2. It has led to the loss of employment, source of livelihood gone. 3. People and businesses are trying to pivot in such a way that is sustainable. One of skills to learn and earn this time is crypto trading. This is why there is a surge in the price of crypto courses. |
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bitcoin and blockchain is different from each other because bitcoin is a digital currency, while blockhain is a databases scattered in all parts of the world that is why even if one goes down there will be no interuption that will occur, blockchain is important for digital currency to run, correct me if i'm wrong
I think its more correct to say that block chain is the digital transaction ledger where all transaction appear transparent. Bitcoin is the digital currency which this digital ledger support. Is that view okay? |
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Aside from ShapeShift and Binance what other exchange platform should we adopt and look keenly?
Personally though, I've had zero problem with both Binance and Huobi Global(HBG) so it's really pointless for me to look for alternatives. It's been quite a while since I've used them though, so do your research. Great point. Let's assume that the two platforms you're using today starting have bugs and security issues, what will you do? I suggest you have alternative exchange should in case that comes up. What do you think? |
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