In a financial bubble… …people’s savings are losing purchase power through negative real interest rates. Simply put, printing money (inflation) with a rate of 2% and an interest rate of -0.5% someone’s savings on the bank is losing 2.5% of purchase power each year. That’s $250 of lost purchase power for someone with $10,000 in … Continue reading What does a financial bubble look like?
Criticising Bitcoin’s energy consumption is easy, because it’s obvious. It’s the easy way out of a complicated topic that has much wider implications than initially obvious. This blog post is a long-form reply to a recent Twitter thread. Bitcoin mining can happen anywhere in the world, the geographical location doesn’t matter per se. For this … Continue reading Bitcoin mining for green energy
In this last we will briefly share some random thoughts on token distribution mechanisms as part of my tokenisation series. A token distribution event is sometimes called an initial coin offering (ICO) or token generation event (TGE). In the traditional world, this can in some ways be compared to an initial public offering (IPO). After … Continue reading Tokenisation part 4 – Distribution
In the first part of this series I gave an overview of what a blockchain token is and what the difference between fungible and non-fungible tokens are. In this blog post I will talk about what different kinds purposes a token can serve. Note; I made some minor but important edits to part 1 of … Continue reading Tokenisation part 2 – Different models
In part 1 and part 2 of this series I covered some basic concepts about risk management and trading in general. In this part, I’m going to explain how these concepts can be used for hedging against price volatility. It’s important to note that we are not talking about active trading techniques here, this is … Continue reading Crypto risk management – part 3: hedging
In my earlier post Crypto risk management – part 1: introduction I gave a brief intro to some thoughts and financial instruments that might be useful when managing risk of owning cryptocurrency. In this second part I’ll introduce in more detail how margin trading with leverage works. In the next post, I will then explain … Continue reading Crypto risk management – part 2: margin and leverage
Almost anyone who has heard about Bitcoin or Ethereum, know that it’s risky business. Some risk factors are; the immature technology, lack of real-world applications that provide real value, lack of protective regulation and price volatility against fiat currencies. In this post I’ll go through ways to manage some of these risks. I’ll not write … Continue reading Managing risk with cryptocurrency
Blockchains are being talked about everywhere it feels like. Companies, institutions, friends and family they all ask about it, and (most of the time) trying to understand what this new technology is, and what it can do for them. In the past I did a non-technical explanation of how blockchains work. But you don’t really … Continue reading The blockchain “so what?” for a company
I previously talked about liquidity and money on blockchains. I find this a very interesting subject. I believe, some of the greatest benefits that blockchain technology will bring to the world is disintermediation in liquidity, custodianship and brokerage. That is, without any middle men, having the ability to easily swap between different types of digital … Continue reading Lending yourself money, from assets you own. Interest-free.
The most basic economic concepts like what is money can sometimes be difficult to get right. A few weeks back I wrote about how Bitcoin is not money. In this post I’m going to continue with a few random thoughts about money, financial liquidity and explore what true money could look like on the blockchain. … Continue reading Money on blockchains