Traditionally, Banks store your currency in an account in your name. The consensus is that you have access and can withdraw your currency at any time. In theory, this might sound correct, but the bank doesn’t necessarily have your money. Banks usually keep a fraction of what is on their balance sheets as a reserve due to their business model of providing loans. Put plainly; banks can provide loans while maintaining very few funds on their balance sheet. This so-called fraction is what they keep as collateral. This system is widely known as fractional reserve banking. On top of this…
Every January 3rd the Bitcoin community is invited to participate in a “Proof of Keys” celebration by taking possession of all Bitcoins held by trusted third parties on their behalf. It was started by Trace Mayer founder of the “Bitcoin Knowledge” podcast, as a way to celebrate the financial freedom embodied by the Bitcoin philosophy.
Centralized exchanges do not provide you with your private keys. Instead, they let you log-in with a well known username-password combination. Not owning your private keys means that you do not truly own your assets. Instead, the exchanges are the “custodian” of your assets, and…
The first wave of digitisation brought us the internet of information. The second wave is bringing us — amongst other things — the internet of value. The internet of value is characterised by an additional layer (protocol) which enables nearly free and instant transfer of value. The internet of value is a new, distributed platform that could help us reshape society, communication, business, and community. It may help us transform, reinvent and innovate human affairs for the better.
Humanity has invented countless new tools and technologies throughout history. Almost every device and every technology we use today has made our…
Before you register for an exchange and rush in to get some cryptocurrency, it is crucial to take a closer look at the potential (investment opportunity) or prospect. In this article, we outline some topics which you can take into consideration. Please note that this is not investment advice, allocating and investing funds into any asset remains your responsibility.
Trading and investing — especially in cryptocurrencies — is a game of probabilities rather than certainties
This article contains some affiliate links. Please feel free to check out all of our suggestions but don’t forget that there are other alternatives out there that might be better for you, for whatever reason.
When you consider that the cryptocurrency market remains highly volatile and largely unregulated, it is still highly speculative to invest in any of it. The road to mass adoption is not without significant hiccups. Blockchain technology needs time to mature. If given that time, many of these startups in the blockchain space will prove themselves, just like any other company and any other technology. …
Many people think that the terms Internet and World Wide Web, or just the Web, may be used interchangeably, but the two terms are not synonymous. The World Wide Web is the first application program that billions of people use on the internet, and it has changed their lives immeasurably. However, the internet provides many other services.
The financialization of the economy has brought about patterns of inequality, cultural and social change. Underpinning these changes is a particular shift in how capital is intermediated. The success of the financial sector has led to the failing of the ‘real economy’, existing of companies and individuals that produce goods and services which add real value to the economy.
Throughout known history, no fiat currency has ever survived. All fiat currencies that have ever existed went to a value of zero and had an estimated lifespan of approximately 27 years. If you compare this with gold, it could not have been more different.
Cryptocurrencies, DLT, blockchain, digital assets and sound money. Learn how they work, what they represent, and why they are all so important in the 21 century