How Bitcoin impacts the economy?
Crypto, markets and you.
GM ✨
This looks like a good morning to run you through the hottest updates in Web3 last week, with some opportunities and resources sprinkled on the side.
Without further ado, let’s see what we have for you in this issue. 🔥
Numbers and News
Impact of crypto on the economy
Web3 jobs & bonus reads
Estimated reading time: 2:42 mins
Weekly Wrap: Numbers & News 🗞
Quick web3 updates curated for you:
An Instagram influencer who went by the online pseudonym Jay Mazini—has pled guilty to a myriad of crimes, including stealing $2.5 million worth of Bitcoin from his followers.
Warner Bros. announced plans for “Game of Thrones: Build Your Realm,” an online game that will let players purchase unique NFTs and trade and sell them.
JP Morgan completed the first decentralized finance trade using a public blockchain.
Instagram users will soon be able to mint and sell NFTs.
A group of Indian crypto and Web3 industry representatives has announced the formation of a new advocacy organization.
What is the impact of cryptocurrencies on the economy?
When the market is fluctuating and the fear and greed index meter bounces, it’s important to zoom out and look at the wider impact of cryptocurrencies—it goes beyond daily price fluctuations.
The positive impacts of cryptocurrency are profound. One of the greatest advantages is arguably accessibility, as the status quo of the current financial system has arguably failed many individuals globally. Almost 1.7 Billion people don’t even have a bank account.
Due to their accessibility, cryptocurrencies may spur financial inclusion globally. For underserved and unbanked populations, the use of cryptocurrencies offers a shot at financial inclusion. Therefore it can be argued that cryptocurrencies are inherently good for the economy.
Cryptocurrencies like BTC have traditionally been considered hedges against inflation. Falling cryptocurrency prices and high inflation rates today may make some wonder whether BTC delivers the high expectations of 𝐟𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐢𝐧𝐜𝐥𝐮𝐬𝐢𝐨𝐧 and hedging against inflation. One question to answer that, do you consider BTC as a means of payment, potentially meeting the needs of a real economy or as an investment vehicle as a haven against inflation?
The benefits of cryptocurrency over fiat and their utility are especially significant in countries suffering 50% or more devaluation against the U.S. dollar (over the last ten years). Think Venezuela, Lebanon, Turkey, Surinam or Argentina. Individuals living in those countries were more than five times as likely to say that 𝐭𝐡𝐞𝐲 𝐩𝐥𝐚𝐧 𝐭𝐨 𝐮𝐬𝐞 𝐜𝐫𝐲𝐩𝐭𝐨 compared with those who experienced less than 50% inflation over the same period.
Needless to say, the cryptocurrency markets can be extremely volatile and chaotic indeed, but zooming out, there appears to be an underlying logic at work. Looking at the logarithmic chart of BTC (see below) instead of its linear chart, for instance, it shows that volatility and drawdowns have remained fairly consistent over time.
How do cryptocurrency investments impact the broader crypto-economy?
Looking in retrospect is always easy, but the Terra project was fundamentally flawed and unsustainable over time. The fall and domino effect across the board indicate the lack of maturity of the very sector itself.
Since innovation and prices are inherently connected, and the early-stage development of the crypto-economy offers lots of untapped potential, the said economy may continue to see events that temporarily undermine growth.
Yet, many working in the sector have a “trustless” conviction that strong projects will keep up during temporary corrections and that the cryptocurrency winter will clean up the path for a cycle of unlimited, novel disruptive innovation.
Build Together & Prosper
Celo is on a mission to build a global financial system that promotes prosperity for all. Their platform makes sending money as easy as sending a text message, accessible to anyone with internet access. By using a decentralized address-based identity layer, Celo allows users to link their phone numbers to their wallet addresses. Additionally, mobile users have the opportunity to earn rewards for participating in the maintenance and security of the system.
Learn more about the Celo ecosystem 👉 HERE 👈
Work in Web3
Mobile App Developer 👩💻 Push
Social Media Manager 📱 Biconomy
Research Analyst 🔍 Leap
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Glad you made it here!
Pick one of these gems to read and enjoy. ☕️
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That’s a wrap for This Week in Web3, see you next week! 🚀
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