The Part Time Economist

As the cryptocurrency bear market continues, many crypto influencers continue to sell their audiences Hopium by promising that they will all eventually profit if they simply continue buying into the market no matter how far the price falls or what bad news we receive. Although I do think it is important to be optimistic and support our favorite crypto projects, it is also important to remember that nothing is guaranteed when it comes to investing. Although there is a historic bull and bear cycle for crypto, we can't guarantee that simply holding an asset will lead to an inevitable profit during the "next bull market". First, there is no guarantee of a bull market, and second, the simple fact that there is a general bull market doesn't guarantee that a specific coin/token/project will share in those gains. I want to be clear that I am NOT saying that all is lost for crypto or that crypto has no future. Rather, I want to reiterate that we should always do our best research before investing and not simply sling hard-earned money at projects with the belief that just holding long enough will guarantee a profit. #crypto #eth #eth2.0

Why do some cryptocurrencies charge users high transaction fees to use the blockchain while other cryptocurrencies are "gas-free cryptocurrencies" that don't charge fees for each transaction? Are some cryptocurrencies greedier than others, or could there be a legitimate reason for transaction fees? Join me in today's video as we discuss why transaction fees are necessary and compare and contrast the ways that transaction fees are implemented differently across blockchains. #crypto #btc #waxp

Cryptocurrency exchange Binance recently grabbed the news headlines with the announcement that it will automatically convert users' USDP, USDC, and TUSD stablecoins into Binance's proprietary BUSD stablecoin. Critics alleged that Binance was trying to gain an advantage over its competitors that issued the other stablecoins. However, Binance officially maintains that the move to convert users' stablecoins will increase liquidity and enhance the customer's trading experience. Regardless of who we believe in this situation, we must answer several important questions. What is liquidity, how does liquidity work, and why is liquidity so important for cryptocurrency traders? #crypto #defi #binance

References

https://www.binance.com/en/support/announcement/e62f703604a94538a1f1bc803b2d579f

If you're new to cryptocurrency, you may occasionally hear the term "fractional reserve banking" used negatively. Even if you don't understand what fractional reserve baking is, the ominous tone of the podcaster's voice clearly lets you know that crypto is the answer and solution to the dreaded fractional reserve banking. But why is fractional reserve banking so bad? How did fractional reserve baking start, and are there any benefits of fractional reserve baking? Lastly, what makes cryptocurrency lending and DeFi different from fractional reserve baking? That's the subject of today's video. #defi #crypto #banking

Unfortunately, it seems like we are constantly hearing about "pump and dump" scams in cryptocurrency where a project will create a token out of thin air and promise that it will change the world, empower the poor, and bank the unbanked. With no intention of actually delivering on these promises, the founders offload their cryptocurrency to unwary buyers and they enrich themselves while average investors are left holding the bag of a now worthless cryptocurrency. Although the secrecy of many cryptocurrency projects makes preventing such scams virtually impossible, a concept known as a "vesting schedule" aligns founders' interests with that of investors by making it impossible for them to sell their cryptocurrency before a specific time. In theory, this is designed to incentivize the founders to focus on the long-term sustainability of the project because they know their tokens will only be valuable if the project is still viable once their vesting schedule is complete. As always, my videos are not financial advice and should be taken as my best effort to provide crypto education.  #defi #crypto #cryptocurrency

References

https://coinmarketcap.com/alexandria/glossary/vesting-period

https://token.unlocks.app/

Proof of stake cryptocurrencies such as Solana, Cardano, and ETH 2.0 allow a decentralized network of participants to maintain the integrity of the network by verifying that transactions follow the rules of the blockchain. If we already have a way of governing the network through proof of stake, then why do we need governance tokens? In this post, I'll use the WAX blockchain and the Splinterlands governance token (SPS) to explain the differences between proof of stake cryptocurrencies and governance tokens and how they are both essential aspects of cryptocurrency. We will also briefly discuss the similarities and differences between governance voting in crypto vs shareholder voting in the traditional stock market. As with all of my videos, this is not financial advice and any use of a specific project/token/chain is simply to provide a tangible illustration of a broader concept. #crypto #sps #cryptocurrency

References

https://medium.com/compound-finance/compound-governance-5531f524cf68

https://www.investopedia.com/terms/v/votingright.asp

A recent feature update on the Cardano blockchain caused a "catastrophic" failure that wiped out over two years of transaction history. Thankfully, this occurred on a test net and although no real funds were lost, this Cardano example brings up a good point that applies to the broader cryptocurrency world. What is a test net, how do they work, and why are test nets so important to cryptocurrency blockchains? As always, this is not financial advice. Rather it is my best effort attempt to provide general cryptocurrency education. #ada #cardano #vasil

Since DeFi protocols can't perform credit checks or assess the credit worthiness of borrowers using the same tools of traditional finance, they typically rely on loan over-collateralization to ensure that lenders will be able to receive their funds back. When borrowers' outstanding loan balances exceed their loan collateral value, they are "liquidated" by third parties that swoop in, repay the loan, and make a profit. In today's post, I'll explain why overcollateralized loans are essential to DeFi, how over-collateralized loans work, and how liquidations function. #crypto #defi #comp

I recently watched a video where the host suggested that cryptocurrency was a popular investment because Millennials are lazy investors who are unwilling to follow traditional methods of building wealth such as starting their own businesses. As a millennial and a crypto investor, this statement hit me pretty hard and got me thinking. Do Millennials invest in cryptocurrency because they are too lazy to build their own business, or are there other factors that cause Millennials to have a disproportionate interest in crypto? In today's post, I'd like to make the case that Millennials are disproportionately likely to be cryptocurrency investors due to unique circumstances their generation has experienced. Rather than simply being lazy investors, I suggest that Millennials' interest in cryptocurrency stems from a logical desire to improve their situation while minimizing downside risk and a willingness to embrace new concepts as opposed to the traditional institutions that they feel have already let them down. #crypto #doge #btc

References

https://www.cnbc.com/2021/07/06/millennial-dogecoin-millionaire-on-being-paid-in-dogecoin.html

https://www.businessinsider.com/average-american-millennial-net-worth-student-loan-debt-savings-habits-2019-6

https://smallbiztrends.com/2022/01/how-much-does-it-cost-to-start-a-business.html

https://en.wikipedia.org/wiki/Millennials

People who believed that cryptocurrency is more secure, decentralized, and trustworthy than the existing financial system were in for quite a surprise this week when crypto lending platform Celsius announced that it would temporarily block customers from withdrawing their own funds. Wasn't the entire purpose of crypto to make sure that people were protected from financial institutions abusing their funds? In this post, I'll explain that although cryptocurrency itself does have advantages over traditional finance with regards to being permissionless, decentralized, and more secure, many of those advantages are lost when crypto is deposited with a third-party custodian. As always, this is not advice and is not an endorsement or disendorsement of any company. It is merely designed to show how the advantages of crypto are mitigated when it is used as a traditional asset. #crypto #celsius #cryptocurrency 

Note: It is possible that this situation may be resolved by the time you are watching the video. 

References

https://arstechnica.com/tech-policy/2022/06/cryptocurrency-plunges-as-crypto-bank-celsius-suspends-withdrawals/

https://blog.celsius.network/a-memo-to-the-celsius-community-59532a06ecc6